Torrens System — Might be where we are headed but who is the guarantor?



The US foreclosure debacle will freeze the real estate industry. No one especially the title companies will insure the title to any home that is in foreclosure , might be or has been. Without that insurance no lender will risk a loan or mortgage on such property. The end of America’s financial system! But wait, there are many countries who use a different real estate system than America’s, one that has worked very well for many decades if not a century. I speak of the Torrens system where title companies are not used, escrow is not used but the government gurantees title. Once the title is properly registered in any land title’s office it is guaranteed. No one can question it. If actual fraud has been committed by either the current title holder or the seller, the registration can be undone but against any third party it is sacrosanct. As well don’t forget that in situations where banks won’t lend and mortgage’s are impossible then one could fall back on the old way of buying and selling property where banks are not involved. It’s called a vendor takeback. In essence it is the seller that provides the mortgage to the buyer. After the down payment has been made the rest of the sale price is made to the seller as if he were a bank and the seller carries the purchaser the same way a bank carries a Mortgagor. The seller then uses the down payment to buy his new home and gets a vendor takeback on it and on and on. Don’t knock it because it worked for many years before mortgages became so popular.


7 Responses

  1. gwen caranchini,

    You are right – I know too.

  2. Why should the ‘government’ socialize and guarantee titles that fraudulent foreclosure mills and servicers had their lying hands on?

    Cancel all $9.5 Trillion in Residential Bank Mortgages for Fraud and Nullity.

    Don’t cover it up with more government cover-ups and ‘insurances’ like this blogger is suggesting. Imagine them covering up all the fraudulent ‘Trustee Deeds’ with this system.

    America can live completely without it’s Ponzi Banking Banks. In fact her people can no longer live in Freedom and truth with them. Go back to gold & silver coins.

    Ponzi modern banks are a curse to survival, not a necessity; as the bank-owned media endlessly portrays. They advertise incessantly with our taxpayer dollar funds, buying off the networks for two years.

    Cancel all $9.5 T. in Residential Bank Mortgages for Fraud and Nullity! It’s the only non-moral hazard!

  3. Title companies won’t insure these titles whether or not they are in foreclosure folks. I know. I filed a quiet title action in a non judicial state when the bank was making noises about foreclosure (BOA). I also filed a lis pendens. As part of my QT/DC action, I got a preliminary title report which showed that the chain was broken and that the title was uninsurable. Chicago Title freaked out. However, that report now is my key piece of evidence in my QT action precluding the judge from granting summary judgment to the various defendants. This is the way to go folks. You heard it from me (and Dave Krieger at This was our strategy and its working.

  4. “Once the title is properly registered in any land title’s office it is guaranteed.”

    Isn’t THAT the key to ANY title insurance coverage? Isn’t THAT exactly what has NOT been happening?

  5. Imagine the reduction of costs there would be for a homebuyer in a torrens-like system, where people deal directly with eachother in the purchase of a property, instead of having all these other leeches err I mean middlemen involved…lenders, appraisers, realtors, mortgage brokers, title companies, couriers, document processors, etc., all taking their cut… even the seller would probably end up with more money in their pocket with a more direct-to-buyer system!

  6. Gary, if the market freezes up and people can’t buy or sell homes, that is a major economic emergency. So, that is why.

  7. Why in the world would we, the USA, consider this travasty of government guarrentee on anything today. Our land and title rights HAVE WORKED for over a hundred years…..this is just wiggle room IMHO.


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