A forged deed of sale transfers a registered property to a purchaser in good faith for value. Can the original owner recover the land from the purchaser?

Study for the Supernova Regulatory Framework for Business Transactions Test. Use flashcards and multiple choice questions. Each question has hints and explanations. Get prepared for your exam!

Multiple Choice

A forged deed of sale transfers a registered property to a purchaser in good faith for value. Can the original owner recover the land from the purchaser?

Explanation:
In a registered-land system, the buyer’s title can be indefeasible if the buyer acts in good faith and pays value. Even though the deed used to transfer the land is forged, the purchaser who buys for value in good faith is protected because they relied on the certificate of title and the appearance of valid transfer. This means the original owner loses the land to that purchaser, and recovery of the land is not available simply because the deed was forged. The original owner’s avenues would be against the forger or the seller (or perhaps a miscreant notary) for damages or rescission, but not to reclaim the land from the purchaser who holds title in good faith.

In a registered-land system, the buyer’s title can be indefeasible if the buyer acts in good faith and pays value. Even though the deed used to transfer the land is forged, the purchaser who buys for value in good faith is protected because they relied on the certificate of title and the appearance of valid transfer. This means the original owner loses the land to that purchaser, and recovery of the land is not available simply because the deed was forged. The original owner’s avenues would be against the forger or the seller (or perhaps a miscreant notary) for damages or rescission, but not to reclaim the land from the purchaser who holds title in good faith.

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