Deeds registration

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, Hong Kong and the Canadian provinces of Nova Scotia and New Brunswick have both systems with the Torrens system gradually superseding the older system. In the Canadian province of Ontario, electronic registration led to Ontario's version of Torrens title covering almost all land, but the past deeds registration still governs some issues.^[1]

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, i.e. 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) does not necessarily mean that he has a "good title", which means a title that is not 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 is not 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 cannot agree on whether a good title is shown.

Relief from harsh system

As we have 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 measures relieve the 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" {usually a conveyance for value but some other instruments qualify also}. A purchaser cannot 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 is 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

Many jurisdictions, where a deeds registration system was used, have switched or are switching to the more modern system of title registration. For example, 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 also

• Land registration
• Recording (real estate)

References