Everything about Deeds Registration totally explained
Deeds registration is a
land registration system in
common law jurisdictions. It is replaced by
Torrens title in most of these jurisdictions now, although a few of them, like most of the
United States, still maintain such system.
Ireland and
Hong Kong have both systems with the
Torrens system gradually supersceding the older system.
In contrast of
Torrens title system in which basically the one who registered in a
land registry as owner of a piece or parcel of land has an indefeasible title of the land, deeds registration system is merely a registration of all important
instruments related to that land. In order to establish one's title to the land, a person (or usually their purchaser's
attorney) will have to ascertain, for example:
- all the title documents are properly executed;
- "a chain of title" is established, for example the proper ownerships from the granting of the land from the government to the present owner;
- there are no encumbrances on the land that probably will harm the title of the land.
Duty to give and show good title
Since, in contrast to the
Torrens title system, the registry is merely a record of all instruments related to the land, the "owner" as shown on the land registry record (or common known as "
land search record" in Hong Kong) doesn't necessary mean that he's a "
good title", which means a title that isn't defeasible or potentially defeasible.
In a sale and purchase of land, a
vendor is required to show a "good title" to the purchaser. Since the land search record isn't conclusive, it leads to problems when a vendor has to prove his title, in particular when the land is old or involves multiple
encumbrances. This may lead to litigation if the parties can't agree on whether a good title is shown.
Relief from harsh system
As we've seen, the deeds registration system can be very harsh on the
vendor's part, the law gradually relaxes the vendor's duty.
In
Hong Kong, the vendor is generally only required to prove his title up to 15 years prior to the date of the sale and purchase. Further, various legislative measure relives vendor's duty. For example, the vendor can rely on assumption that a
recital of an instrument referring to matters prior to 15-year-old is true.
In
Ireland a vendor has to produce "a good root of title" . A purchaser can't insist that the root of title be more than 40 years old and the practice is to only insist on a minimal 20 year period because there's a presumption that the recitals in a conveyance for valuable consideration are true if that conveyance is at least 20 years old.
Changing to title registration
Hong Kong, one of the very last places in the common law world to still maintain a deed registration system, finally passed the
Lands Title Ordinance in 2004, which will see Hong Kong shift to the
Torrens title system. The law will be gradually implemented over a period of twelve years.
See
Lands Title Ordinance
for the situation in Ireland see http://www.landregistry.ie/
Further Information
Get more info on 'Deeds Registration'.
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