THE TORRENS SYSTEM…GOV’T GUARANTEED TITLE

POSTED BY ARCHIE 1954

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.

ABSTRACT V TORRENS PDF

http://www.co.ramsey.mn.us/et/docs/abstract.pdf

Posted in bubble, Corruption, Eviction, securities fraud |