History of Torrens System in Australia

In early 1800s, there was an immense land speculation and a

haphazard grant system where it resulted in the loss of over 75% of the
40,000 land grants issued in the city state of South Australia. In 1839, the
land title system was made even more intricate when the district maps were
destroyed in a fire. Obliterated survey marks and incorrectly located fences
only compounded many of the original errors. After 1842 the district
divisions were gradually replaced by counties and hundreds and the land
resurveyed and renumbered. In order to resolve the insufficiency of the
common law and deeds registration system in the state, a member of the
colony's House of Assembly named Sir Robert Torrens proposed a new by
June 1857, a bill was introduced for the reform to Parliament. The three
main principles of the said Bill were:

That the title would be surrendered on sale and new grant would
be issued.
That the registration alone would provide validity to land
dealings.
Simple, standardized forms would eliminate the need for a
solicitor except in complex cases.

This Act established the Land Titles Board that would be able to give a title
of real property by certificate rather than deed. When the Bill was passed a
year after, Torrens resigned from the House and accepted the position of first
Register-General of Titles.
He based this brilliant, simple system on the method of insuring
shipping used by Lloyds of London1 in the United Kingdom. It used a single
register for each land holding and recorded all details and interests affecting
that land such as easements, mortgages, and subsequent changes in
ownership. The owner of the cargo would hold the other as proof of his
Title to the goods listed in the manifest. When applied to land
ownership the system became known as Torrens Title.
This old system of registration was consisted of a chain of
documents/deeds detailing the lands past and present ownership and
mortgage history. This bundle of documents could be quite bulky and
was usually tied together with pink cotton ribbon. It is thought this is
where we get the term Red Tape.Torrens derived ideas from many other
sources and that he received assistance from a number of persons within
South Australia.

Generally known simply as Lloyd's, is an insurance market located in London's primary

financial district, the City of London. The Lloyds of London was founded on 1688.

The Torrens Title system was simple, cheap and easily understood.
Crown land that was freehold after the 1 July 1858 had to be registered at
the Lands Titles Office and the owner was given a copy of the certificate
entered into the official register. Any transactions that affected the land
E.g. mortgage, encumbrances, would be registered on the certificate. If the
land was sold the vendor had to surrender the title to the buyer who
registered a transfer of ownership. The state had now assumed the
responsibility of proving the validity of titles.
Once the new system was in place Torrens toured the other states
advocating its use. By 1870 the new system had already been adopted
throughout Australia and was being implemented in New Zealand. The
system has since been adopted or partially adopted internationally as a
simple system of land title management.
Torrens Title then became the standard when introduced into New
South Wales with the commencement of the Real Property Act in 1863
until the Real Property Act 18862 (SA) which made the Torrens title system
as a central registry of all the land in the jurisdiction of South Australia. All
transfers of land are recorded in the register. Most importantly, the owner of
the land is established by virtue of his name being recorded in the
government's register.
Over the years methods have been modernized but the principal
remains the same. A single indisputable Certificate of Title recorded in the
Lands Titles Office and a paper version held by the owner.
LAND REGISTRATION
The heart of the Torrens System is the registration of land.
Initially, the register was made in bulk bound paper record, but today the
register is typically kept in a database.
The registration of land under the system was made originally in the
manner where the land is given a unique number (called a folio) wherein it
identifies the land by reference to a registered plan. The folio records the
technical description of the land and its boundaries, as well as the name of
the registered owner and any legal interests that affect title to the land.
When there is change in the boundaries of a parcel of land, a revised
plan must be prepared and registered. Once registered, the land cannot be
withdrawn from the system.
2

REAL PROPERTY ACT 1886 - An Act to consolidate and amend the Real Property
Act 1861 , the Real Property Act Amendment Act 1878 and the Rights-of-Way
Act 1881 , and for other purposes.

TRANSFER OF OWNERSHIP
A transfer of ownership of a parcel of land is effected by a change of
the record on the register. The registrar has a duty to ensure that only
legally valid changes are made to the register. To this end, the registrar will
indicate what documentation he or she will require to be satisfied that there
has in fact been a change of ownership3. If there is a change of ownership by
reason of a sale of the land, or as a result of a court order, or the death of
the registered owner, and the like, any interest which affects or limits the
ownership rights of the registered owner, such as a mortgage, can also be
noted on the register.
DIFFERENCE BETWEEN TORRENS TITLE AND COMMON LAW TITLE
The main distinction between Torrens title and a common law title is
that a member of the general public, acting in good faith, can rely on the
information on the land register as to the interests and rights of the parties
recorded therein, and can act on the basis such information. For example, a
prospective purchaser is not obliged to look beyond the record. It is not
necessary for such person to examine the Certificate of Title.
This is contrasts with a common law title, wherein it is based on the
principle that a seller cannot transfer to a buyer a greater interest than he or
she owns. As with a chain, the seller's title is as good as the weakest link of
the chain of title. Accordingly, if a vendor's common law title is defective in
any way, so would be the purchaser's title. Hence, it is incumbent on the
purchaser to ensure that the vendor's title is beyond question. This may
involve both inquiries and an examination of the chain of title 4.
The registered owner of Torrens land is said to have an indefeasible
title. Meaning, the title is not capable of being annulled or voided or undone.
Further, it means that only in a very restricted circumstance that a person
can be challenged anent to his or her own title. These challenges are
established by law and are subject to rules made by courts.

3
4

http://www.necs.gov.au/Land-Registries
https://en.wikipedia.org/wiki/Torrens_title