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e. a non-appealable title).
Legal security is the main advantage of this system for the general public. 1. An individual may invoke the designation, as indicated in the Registry, as convincing proof of a good designation without having to examine the historic value of the designation to establish whether there is a defect of title. 1.
The system provides convenience for buyers and mortgage creditors who want to do business with a single individual with real estate ownership. B.C.'s land register system, as enshrined in the Land Registry Entry Act, is not a real Torrens system, but only a valid assurance that a landowner has an inviolable name.
Under the Land Ownership Act there are several exemptions from sacrosanct ownership, among them an exemption for frauds involving the incorporated proprietor. Deception exemption allows a fraudulent individual who has been expropriated from land to restore the fraudster's property (provided the deceiver is still the property's legal owner).
Gill v. Bucholtz 2009 BCCA 137, published on 6 April 2009, gave the B.C. Court of Appeal the opportunity to examine whether mortgage loans awarded by a defrauder continued to encumber land even after the land was returned to its legal owners. Mr. Amritpal Gill was the incorporated proprietor of the property.
As of November 2005, a swindler (whose name is still unknown) falsified Mr. Gill's signing of a land plot assignment to Mrs. Gurjeet Gill, who cooperated with the swindler. Mrs. Gill then gave a creditor a mortgage, which paid her 40,000 dollars when she submitted the loan to the land registry (at the same time as the counterfeit transfer).
Approximately a months later she was negotiating a second loan with another creditor, but was unable to record it because Mr Gill had lodged an appeal against the deal after discovering the scams with his country. Unfortunately, the second creditor had already paid $55,000 to Mrs. Gill. None of the two lenders knew that Mrs. Gill had obtained her degree through cheating.
The two lenders had received proof of their identities before submitting money, but since she was shown on the fake money order (and finally the title) as a listed proprietor, no suspicion was aroused. The following clause was added to the Land Register Act with 25 between the time of entry of the first and second mortgage.
"Except as provided in this Section, a party who claims to have acquired a property or inheritance or interest in the property by registering an invalid deed shall not purchase any property or interest in the property by registering the instrument. In court, the B.C. Supreme Court found that Mr Gill was justified in having his claim reinstated in view of the exemption from the inviolable right of deception referred to in Paragraph 23(2)(i) of the Grundbuchteintragungsgesetz.
On the other hand, the Tribunal also ruled that because the lenders had reacted in good faith to the state of the Registry, their mortgage was still in force and was still encumbering Mr Gill's mortgage even though he had not obtained funding from either of them. No wonder Mr. Gill called. B.C. Appeals Tribunal found that although the Land Ownership Act grants inviolable property to landowners who are registred (subject to legal exceptions), the holder of lower interests entered in the commercial Register (such as mortgages) does not receive inviolable interests.
However, the courts ruled that Mrs Gill, since she had become a landowner by cheating and had never actually earned a legitimate interest in the land, had no interest in lending to the lenders. 1 (1) and according to Commons Law) and the lenders were allowed without any collateral for the funds paid to Mrs. Gill.
Gill's ruling is significant in that the Tribunal held that the purpose of the amendment to the Land Registry Registration Act was to transfer the risks of frauds directly to the lenders' and other responsible parties' own debtors' debtors' shoulders and not to the general population ( "as a financier of the insurance fund that compensates individuals who have been disadvantaged by land frauds or by an interest in land").
For lenders and cargo owners, the ruling makes it particularly important to make sure that the identification of the registred property holder is established and that the registred property right of the registred property holder has not been obtained through deception or falsification. How exactly they do this will undoubtedly be the object of discussions between lenders and their solicitors.