What Is the Torrens System and How Does It Protect Owners in Alberta?

When you buy a home in Alberta, you rely on a government record rather than a long chain of old papers. That record is the certificate of title, and the system behind it is called the Torrens system.

This article explains in plain words how the system works, what it means for a title to be conclusive, where its protection stops, and what happens if the Registrar makes a mistake.

This article covers the law of Alberta.

The basics of the Torrens system

Alberta's land registration system is based on the Torrens system, administered under the Land Titles Act, which is the legislative framework for registering documents that create and terminate legal rights in property. The idea is that the register itself tells you who owns what.

The Government of Alberta has custody of all original titles, documents and plans and has legal responsibility for the validity and security of registered land title information. A certificate of title is the record of the title to land kept by the Registrar.

Registration is what makes a dealing effective

Once a certificate of title is granted, no instrument is effectual to pass an estate or interest in the land unless it is executed and registered under the Act. A registered instrument becomes operative according to its tenor and intent.

There is an exception: a leasehold of three years or less can pass without registration. The Registrar must record on the certificate the particulars of instruments, caveats and other dealings affecting the land.

Conclusive title, and its limits

This is often called indefeasibility of title. A certificate of title is conclusive proof in all courts, against the Crown and all persons, that the named holder is entitled to the land for the estate or interest stated, subject to the s.61 exceptions and to fraud.

The owner holds the land subject to the encumbrances, liens, estates and interests endorsed on the title. Land is also subject, without being mentioned on the title, to matters such as unpaid taxes, public highways and rights of way granted under Alberta law.

Compensation when something goes wrong

A person who sustains loss or damage through an omission, mistake or misfeasance of the Registrar may seek compensation. The Minister may direct payment of claims of $5000 or less, and claims are paid from the General Revenue Fund.

A bona fide purchaser is protected where they made all reasonable efforts to confirm that the transferor or mortgagor is the registered owner. The Registrar may also file a caveat to prohibit a transfer or dealing where an error appears or to prevent fraud or improper dealing.

What to do next

• Order a current title before you buy, lend or refinance.
• Read every registered item, including mortgages, caveats and easements.
• Remember that some matters, such as unpaid taxes, may not appear on the title.
• Take care to confirm that the person selling is the registered owner.
• If you think you have suffered a loss through a Registry error, speak to a lawyer promptly.

Frequently asked questions