Cal Land Registry Law 2

8/13/2019 Cal Land Registry Law 2

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khen - ~ r o p e r t y as been r eg is te re d under t he Land T i tl e Law a l l subsequentd ea li nc s v i t h t h a t l an d a r e su bj ec t t o t he pr ov is io ns o f t h ~ and Title Lar;,(l)

un less t he p roper ty i s p roper ly h i thdraxn from t h e system. The b r inging of th elan d un5er th e a c t implies an a g r e e ~ e n t hich runs with the land. Formerly, no~c i thdrawal of ~ r o p e r t y rom the Torrens System w a s permitted. I n t h e l a s t e le c-tion, however, a measure was passed by t h e people pe rn it ti n e okners t o withdrawi t from th e Torrens Syster?. The procedure f o r vit hdr awa l u i l l be discussed be-low. S n t i l withdrawal, the p roper ty remains sub jec t t o the p rov is ions of theLand Ti t l e Law

The Dresent chagter w i l l be devoted t o a disc ussion of th e procedure f ol -lowed i n deal in:: with Reqis t ered land af t e r i t has Seen brought uneer the LmdT i t l e Law. This involves conveyacec, cre at i on of var iou s types of voluntary

ncumbrances such a s .nlort;l.age, t r u s t deed, e t e r a ; c r e a t i o n o f v a r io u st p e s of i n v o l u n t a q ? enc um br a?ce s su ch a s j u d p e n t l i e n s , a tt ac hm en t l i e n s ,

e t c et er a .

Ti e pr oc ed u re d e sc r ib e d i n t h i s s e c t i o n a p p l i e s t o t h e c o n v e y a xe of t h ee n t i r e e s t a t e i n re gis ter ed land; th e conveyance of a p a r t of t he land; th econveyance of an u n d i v i d e d i n t e r e s t in t h e l en d; l e a s e of r e g i s t e r e d l a n d f o rt h e l e s s ee ' s l i f e . Any t r a n s f e r of a l e s s e r i n t e r e s t s uc h a s a l e a s e f o ryea rs and th e cr ea t i on of any encumbrances on reg is t ere d lan d w i l l be discussedin t h e n e x t s e c t i o n .

The f i r s t s tep invo lved in th e conveymce of r eg is t er ed land i s the exe-cilticn of an instru;.ent of conveyance, which i s re qu ir ed t o be of d ura ble ma-t e r i a l . ( 2 ) The f o m of t h i s i n s t r ~ u e n t may be t he s m e as M O U ~ C be used i fnon -re gis tere d lan d were involved. 3 ) For exmule, 0 t h e or.mer o f E l a c k c r e ,d e s i r e s t o con vey h i s i n t e r e s t t o P. executes any type of deed authorizedby lax, suck as a g t deed or q u i t ckirr? deed made ou t t o P, t he e r a t e e .0 m u s t mzke a n o t a ti o n on t he i n s tr u ne n t t h a t t h e l a d i s r e g i st e re d l a nd ,t he name of t h e re gi st er ed owner 0 in t h i s cas e) and th e number of t hec e r t i f i c a t e o f t h e l a s t r e g i s t r a t i o n of t h i s p ro pe rt y. I f t h i s n o ta t io n i so m i t t e d t h e i n s t n m c n t w i l l be refused by the f iegis t rar . (k) T h e p a n t e e ' sf u l l name m adc ress must a l so appea r on th e deed. 5 ) I f the property con-vered i s re gi s t er ed pro perty and con si s t s of community property, the spouseir whose name it i s registered may convey i t in h i s n m e, b ut wr i tt e n c o n s e ~ tof th e o th er spouse must be obtained accorr ' ing to Sect ion 57 of the k n d T i t l e

Lax. I f th e p roper ty t rv l s f e r red i s homestead p roper ty, both spouses mustj o i n i n t h e t r v l s f e r s provided bq- Section 56 of the L:nd Ti t l e Lax, unless


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the homestead has been released or extinguished.

The deed must be properly delivered by the grantor to the grantee.This i s an es sen t i a l s t ep in the conveyance of registered property.(6)T i t l e does no t pass, however, on the de liv ery of the deed as i t wouldwhen non-registered land i s conveyed. Title to registered land does notpass unti l the instrument i s f i l e d and a new cer t i f i ca te issued by the

re gi st ra r. Un til such time th e only ef fe ct the instrument has i s that ofa cont rac t to convey.(7) This i s one of the essential differences betweenthe ordinary recording system and the registration (Torrens) system.(8)

The next s te p which must, the ref or e, be taken i s t h e filing of theinstrument of conveyance. P, in the above example, must present the ~ r xnal eed to Blackacre given t o him by 0, t o the Registrar. t the sametime he must produce the duplica te ce rt if ic a te t h a t had been issued t o 0when he acquired the property. T h i s may be accomplished by having giveP the c er t i f ic a t e or having 0 appear a t the Regis t ra r s off ic e wi th P andg ive t he ce r t i f i c a t e to t h e Reg i s t ra r d i r ec t l y. Either method i s trouble-some s ince de l ive r in gth e ce r t i f i ca te t o P involves the poss ib i l i ty o floss, and an actu al appearance a t the Reg istrar s of f ic e requires an ele-

ment of time. I n this respect the Torrens System i s more cumbersone thanthe Recording System. 9)

In addit ion, the grantee P in t h i s c ase ) must f i l e an a f f i d a v i tv i t h the Re gistrar containing the fol louin g data: (10)

1 l rhether the trapsferee i s married and i f so th e name of th e hus-band o r wife and whether o r not the property i s community property. Thisaf f i da vi t must be signed by the transferee but it i s not necessary for thespouse to s ign a l so i f the t ransferee i s married. rece nt opinion issuedby the Attorney General s off ice cl ar if ie d this since it had formerly beenthe prac t ice of Regis t ra rs in California to require both the husband andW e o sign the aff ida vit . ( l l ) The reason f o r this pr ac tic e was t o avoidfra ud on the pa r t of th e spouse who was th e tran sfe ree . Tie AttorneyGeneral s opinion held t h a t a bon f i d e purchaser could re ly on the st a teof th e t i t l e in th e ce rt if i c a te and would be protected i f the spouse hadmade fraudulent statements concerning the character of his or her owner-ship aa separate property or community property.

M t e r these meter ials have been f il e d by the gran tor and grantee inprope r form, t h e i r du tie s have ceased. The Registrar then marks as-f ile d0 th e instrument, such as a deed, which has been depo sited with hinand marks the day, hour, minute and ye r it w a s received. This i s donef o r all ins t rmnents f i led w i t h t h e r e g i s t r a r in the order i n which theyar e received.(l2) l l instruments which a re f i l e d with the Reg istrar rerequired t o be kept by him in the Regis t ra r s off ice . They shall not betaken out except by a Subpoena Duces Tecum issued t o and served upon theReg istrar by a cou rt of rec orL (l3 )


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T h e R e g i s t r a r s h a l l i s s u e c e r t i f i e d c o p i e s o f t h e s e i n s t r u m e n t s t h a thave been f i l e d with him when demand i s made and th e proper f e e s havebeen paid. He must wr i te acr oss the fac e of thes e copies i n red ink copy,%o ri g h t s conveyed thereby. These ce r t i f i ed cop ies a r e admissib le in ev i -dence with the same force and effect as the or iginal instrument . (&)

The grantee under a deed t o reg is t ere d property does no t r e ta in tinedeed, but t i s k e p t by t h e R e g i s t r a r. The gra ntee may, of course, r e t a ina dup l ica te copy of the deed fo r h i s ow use.

Af te r marking the deed as f i l ed t1 the Regis t r a r i s s ue s in d u p l i c a t ea new c e r t i f i c a t e o f t i t l e which c e r t i f i e s t h e t i t l e t o be in t h e g r a n te eP i n o u r e x a m p l e ~ b o v e ) .

He t he n f i n d s t h e o l d c e r t i f i c a t e of t i t l e i n h i s book e n t i t l e dRegister of Titles. T h i s c e r t i f i c a t e w i i l be in th e name of th e g ran tor0, n th e above example.) On t h i s old c e r t i f ic a t e and on the dupl ic ate

copy of t h i s c e r t i f i ca te which has been sur rendered by the g ran tor, theRe gi s t ra r then makes nota t ion of the date of the t rans fer , the name ofth e t ra nsf ere e, and the volume and page i n which the new ce r t i f ic at e i sreg is ter ed. He then s tamps across th e ol d c e r t i f i c a te surrendered and th e

o ld c e r t i f i c a t e i n th e Re gis ter of T it le s the word nCanceledtl, i n whole o rin par t , bu t r e t a i ns them.( lS) Sec t ion o f th e Land Ti t l e Law' requ i rest h e R e g i s t r a r, in addi t ion , to wr it e th e word Transferred end the da te o ft h e f i l i n g of t h e I ns tr um e nt of t r a n s f e r on t h e o l d c e r t i f i c a t e and s u r r en -dered du p l ica te c e r t i f i c a t e and s ig n th e endorsement.

The new ce r t i f i c a t e which i s issued contains the same information as i sr e qu i re d when t h e o r i g i n a l c e r t i f i c a t e of t i t l e - i s i s su e d a f t e r t h e i n i t i dju d i c i a l p roceed ings requ i red f o r the b r ing ing of p roper ty under the Tor rensSystem. The data requ ired f o r such c e r t i f i c a t e may be obtained from Chapter

of t h i s paper. Sec t ion 58 however, e x p r es s l y s t a t e s t h a t t h e c e r t i f i c a t ei s s u e d in accordance with a subsequen t t r a ns fe r must s t a t e uh ef i e r the p rop-e r t y i s community prop erty or not . I n addi t ion, i f t h e t r a n s f e r e e i s an ex-

e c u t o r o r a d m i ni s t ra t o r S e c t i o n 8 r e qu i re s t h e c e r t i f i c a t e to name the de-c ea se d t e s t a t o r o r i n t e s t a t e . I f t h e t r a n s f e r e e i s an e s s ig n ee o r t r u s t e e ,th e new c e r t i f i c a te must contain t he name of th e insol ven t o r bankrupt. I ft h e p m p e r t y h as bee n s o l d f o r ta x e s a nd t h e l a s t c e r t i f i c a t e shows su ch t obe the case , the new ce r t i f i c a te i s sued upon t ra ns fe r o f such proper ty musts t a t e t h a t t h e t r a n s f e r i s s u b j e c t t o such sa le f o r taxes . The procedureinvolved in s a l e o f r e g i s t e r e d p r o p er t y f o r t a xe s i s discussed subsequently.

The new c e r t i f ic a te and d u p l i c a t e are endorsed with t h e volune andp ag e o f t h e r e g i s t e r where t h i s new c e r t i f i c a t e i s t o be found. This re-quirement i s the same as required when pmperty i s i n i t i a l l y r eg is t er e d.

The new ce r t i f i c a t e which i s i s s u e d i s k e p t b y t h e R e g i s t r a r in t h eR e g is t er o f Ti t l e s and t h e d u p l i c a t e c e r t i f i c a t e i s d e l iv e r e d t o t h e

grantee who i s th e new owner of t he property. He must si gn a re ce ip t f o rt h i s a s d is cu ss ed i n Chapter 2 in connect ion with the i n i t i l r e g i s t r a t i o n


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of t i t l e . The name of the transferee must be entered in the book requiredt o be kept by'the Registrar containing the names of a l l persons to whomc er t i f i ca te s have been i ssued . The number of h i s c e r t i f ic a t e and th e day,hour and minute of i t s issuance must a lso be entered in this book. ne n t r y must a ls o b e made in t h i s book of t h e name of t he person t o whom th edu pl ic at e was d eli ve red and the book and page where t h e or ig in al i s enteredo r recorded. This book al so contains th e rec eip ts fo r del i very of dupli-c a t e c e r t i f i c a t e s .

The new re g is te re d owner's name must then be indexed al ph ab et ic al lyin the index of persons ouning interests in registered property. An e n t r yvould also have t o be made n the property index. Chapter contains adiscussio n of these records kept by the Registrar.

The property i s deemed Registeredw in the name of the transferee whent h e new c e r t i f i c a t e i s i s sued in h i s name i n duplicate and a notation madeth ere on of t h e volume and page of th e Re gis ter in which t h e o ri g in a l maybe found.(l6) This i s the same method used in registering property wheni L i s brought under the Torrens System f o r the f i r s t t ime. Registret io nIndi ca te s the passage of t i t l e f rom the o ld owner t o the new owner.

I t has been argued t ha t t he Regist rar in i s su ing a new ce r t i f ic a t eupon a subsequent t ran sfe r o f reg i s te r ed property o r in making memorialso f encumbrances on ex i s t i n g c e r t i f i c a t e s o f t i t l e i s exe rci s i ng j ud i c i a lfunctions which i s a v io l a t i on of t he C a l i f o r n i a Cons ti t u ti on A r t i c l e 111Sec tio n which pr oh ib it s one department of th e state rom exercising func-t i o n s belonging t o another . The ba si s f o r such an argument i s t h a t t h eRegis t ra r, an admini s t ra t i ve o f f i c i e l , must perform a jud ic ia l func t ion indetermining the le ga l e ff ec t o f ins truments f i l e d with him, such as l eases ,deeds, e t c e t e r a before he i s rmes th e new c er t i f i ca te o r en te rs a memorialof an encumbrance. In the i s suance of the f i r s t ce r t i f ic a te when proper tyi s originally brought under the Torrens System no such problem i s involved

s i n c et h

c e r t i f i c a t e i s issued by the Registrar under a court order.The court in the case of Robinson v ~ e r r i ~ a n ( l 7 ) i scussed th i s cons t i -

tu t i on al problem and s t a t ed t h a t eve ry Edmin is t ra t iv e o f f i c i a l i s c a l l e dupon r o m time to time t o e xe rc is e some powers which are l e g a l in e f f e c t ,

ut which a r e mere ly i nc i d e n t a l t o h i s a d mini s t ra t i v e m c t i o n s . Since theRecorder i s merely a min i s t e r i a l o f f i c e r h i s deci s io n on l eg a l q u e st ionsi s no t f i n a l and he may be ordere d by a w r i t of mandamus to ac t properly.Th is , t h e c o u rt f e e l s i s a s uf fi ci e nt safeguard. The provisio n involvingt h e duty of th e Regis t ra r to i s s ue subsequent ce r t i f ic a t es has, therefore ,been upheld as cons t i t u t i ona l . n addition, Section 99 of t h e Land n t l eLau provides t h a t th e Regis t ra r may pe t i t i on t he c our t f o r an op inion onhow he should ac t in regard to any subsequent t ra ns ac ti on when he i s indoubt. In addi t ion , if t h e p a r t i e s d i s a g ree s to the way an in te re s tshould appear on a c e r t i f i c a t e t he y may reques t a cou r t o rder g iv ing theproper form t o be used.


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The case of n r e Seick(l8) involves the r igh t of the Registrar to a s kth e c ou rt f o r an or der as t o t he method of ent erin g vario us encumbrances ontne ce rt if ic at e of t i t l e . The case, however, st res ses the point th at anapp eal may be taken from the cour t ord er as in th e case of any co ur t orderand the decision of the app ella te court may hold t h at t he order given tothe Registrar w s improper and, th er ef or e, should be changed.

The conclnsion i s t ha t the Registrar may exercise ce rta in jud icia ldu ti es on occasion, but th er e i s a sufficient judicial control over theexerci se of these duties.

t should be noted that there i s an alternative method of transfemhgregistered property. This i s as follows: 0, t he ouner of Lot may endorseon hi s duplicate ce rt if ic at e of t i t l e covering Lot the following statement:

1, 0, grant t o P t he real property described i n t h i scert if icate. Witness ... and ... and seal ... h i s ...day of . , . 19)

This endorsement must a ls o contai n t he f u l l name, reside nce and post-o fficeaddress of the grantee as provided in Section 54 of the Land T i t l e Law.

This dup lica te c e r t i f i c a t e of t i t l e , properly endorsed and acknowledgedi s then delivered t o the grantee, P. This i s su ff i c i en t t o t r ans fe r t heprop erty without t h e issuan ce of a new c er ti f ic at e . When t h i s method i sused th e c e r t i f i c a t e of t i t l e in the Reg istr ar s of fi ce does not show thetru e st at e of t i t l e , but the duplicate ce rt if ic at e does. subsequent pur-chaser from either 0 or P a f t e r t he t r an s f e r t o P u i l l not be misled sincehe must acquire this duplicate cert if icate in order to acquire t i t l e andthe duplicate will show the tru e st a te of the t i t l e . This is tr u e whetherh e t a k e s t i t l e by an endorsement on the duplicate certificate or by a sur-render of the dupl ica te cer t i f i ca t e to the Regi stra r and th e issuance of an v ce rt if ic at e. This alt er na tiv e method i s advantageous i n t h a t i t savesadd itio nal expense of issuing a new cer ti fi ca te .

Generally, when only a par t of the land described in a c e r t i f i c a t e i st ransfer red, a new ce rt if ic at e i s issued to the grantee covering the partt ransfer red to him and a new ce rt if ic at e i s issued t o the grantor f o r thepart remaining in him. n exception i s made when a t r a c t i s divided intosubdivis ions des ignated by numbers o r le t t e rs on a p l a t f i le d ~ 5 t h heRecorder. In such a case, i th e owner of th e t r a c t conveys a subdi visionof th i s tra ct , the Registrar may issu e a new ce rt if ic at e to the granteebut merely enter a memorandum on th e o ri gi na l c e r t i f i c a t e and the gra nto r sduplicate, cancell ing the ce rt if ic at e as to the subdivision tha t has beenconveyed.(20) This, of course, saves th e issuance of a new ce rt if ic at e toth e gra ntor ea ch ti me he conveys a subdivision , which involves a consider-able amount of time and expense. This process may be continued s long as

the re i s room on the original and duplicate cert if icates for these nota-t ions.


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Section 109 of t he Land T i t l e Law provides t h a t the ouner of n g i s -ter ed laud maysubdivide it in th e same manner as unregistered land andwhen t h i s in done new certificates must be issued.

When the owner of a subdivision tr ansf ers l o t s subject t o buildingre str ict ion s, he may furni sh the reg ist rar with printed forms of ce rt if i-c at es of t i t l e to be used by the Reg istr ar and may include th e re st ri ct io nsin t he ce r t i f i ca t e s . These forms must be approved by t h e Regi st ra r, bu the has no aut ho ri ty over what re st ri ct io ns sh a ll be included.

111 PROCEDURE INVOLVED N CREATING ENCUMBRANCE ON EGISTERED

The procedure involved in cre at ing encumbrances on r eg bt er ed land i ssimilar t o that involved in a conveyance of t h i s land. Howeversthe m indifference i s th at no new ce rt if ic at e i s issued i n connection ui th an en-cumbrance. memorial of the encumbrance i s gen era lly made on th e o ri gi -n l and dupl ica te cer t i f ica tes of t i t l e applicable to the property involved.The procedure vill however, be discussed below. I t i s adviseble t o di s-cuss voluntary and involuntary encumbrances separately due to a few majordifferences in th e procedure fo r re gi st er in g th es e two types of encumbrances.

Voluntary encumbrances inc lude mortgages, t r u s t deeds, and variouscharges against the property. The method of register ing such encumbrancesi s as follows: a

The ouner of t he re gi ste red prope rty f i l l s out an instrument such asi s used when non- regist ered pro per ty i s involved. (8.g. mortgage, twtdeed)el) This must con tain t he f u l l name, address of the person who claimsan in te re st under the instrument, and a statenent t ha t the land i s regis-

ter ed land, th e name of the regi ster ed owner and th e n u d e r of th e ce r ti f i-c a t e of t he l t reg istr at io n thereof.(22) This i s f i l e d w ith t he R e g i s t r a t soff i ce together w i t h t he dupl icat e ce r t i f i c a t e of t i t l e t the property.Section 55 provides t h a t when the instrument such a s a mortgage i s f i l e dth property becomes subject to t h i s mortgage. Unt i l th i s time the mort-gage operates merely as a contract t mortgage the property as between thepar t ies . Actually, in spite of the language of Section 55 stated above,th e mortgage does not become a l i e n un t i l such time as i t i s actual ly ente red on the Regis ter of t i t l es .

When the instrrunent i s f i l e d the Registrar endorses th e date of f i li n g thereon.(23) After m king a memorial of t h i s instrument on the origi-n l c e r t i f i c a t e i n th e Regist er of Ti tle s, the Reg istr ar makes a notation

on t h e mortgage o r oth er inst rument f i le d , of t he volume and page of t heRe gis te r where t he memorial of t h a t document vas made. (2 ) This document(e.g. Xortgage, t ce te ra ) is retained by th e Registrar i n his f i les.(25)


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When a mortgage, le as e o r oth er instrument cre at i ng o r deal ing with ac h a rge upon r e g i s t e r e d l an d i s i n d u p l ic a t e, t r i p l i c a t e , o r more p a r t s , o n lyone par t need be f i l e d w it h t h e R e g i s t ra r. The Regis t ra r no tes on the o r ig i -na l c er t i f i c a te i n the Regis te r o f Ti t l e s whether the mor tgage o r o ther i n S t r U -;nent was fi l e d in d u pl ic a te , t r i p l i c a t e , e t c e te r a. The Registr-r also ma*son t he o th e r copies of t he instrument " m o z g a d u p l ic a t e" , n l e s s o r f s dup-l i c a t e " , ce te ra , and th e dat e of f i l i n g and the volume and page of th eX eg is te r where ~ h e emor i~ l of' th a t docment i s en te red . He t he n d e l i v e r s

them t o t h e p a r t i e s e n t i t l e d t h e r et o. ( 26 ) I f a suff ic ient number of copieshas no t been fu rn i shed t o th e Regis t ra r, the Reg is t ra r may make ce r t i f i e dcop ies o f the inst rument f i l e d i n h i s o f f i ce with the endorsements the reonand m rk then "mor tgagee 's ce r t i f i e d copy," e t ce te ra . He e n te r s on th eR e g i s t e r a n o t a t i o n of t h e i s s u an c e of t h e s e c e r t i f i e d c o pi es . These aret h e n d e l i v e r e d t o t h e p er so ns e n t i t l e d t o them. These ce r t i f i ed cop ies thenhave the same force and effect as dupl icates . (27)

s s ta te d above, th e Reg is tr ar makes a nemorial of th e mortgage o r ot he rc h a r g e f i l e d w i t h him on t he o r i g i n a l c e r t i f i c a t e of t i t l e i n t h e R e g i st e r ofT i t l e s and a l s o on the o rmer 's chp l ica te ce r t i f i c a t e which has been sur renderedto t h e R e g i s t r a r.

I f t h e i n s t m ~ e n t r a n s f e r s t h e p r o p e r t y in t m z t , u pm c o n di t i m o rupon l i n i t a t i o n t h e R e g i s t r ~ r must no te th i s fa c t on the o r i g in a l and dup l i-c a t e c e r t i f i c a t e s of t i t l e . If t h e t r u s t e e i s given a power of s al e t h i smust be no ted on the o r ig in a l and dup l ica te ce r t i f i c a t es . I f the ins t rumentdoes no t s t a t e th a t he has pm er o f sa le , a cour t o rder must be g iven ino r d e r t o a ll ow him t o s e l l . ce r t i r i e d co?y of th i s o rder must be f i l e dw i t h t h e r e g i s t r a r m d a m e m r i s i o i t e n t er e d on t h e c e r t i f i c a t e o f t it le . 28 )

Whenever a memorial i s e nt er ed on a c e r t i f i c a t e of t i t l e t must bec a r r i e d f orward on a l l c e r t i f i c a t e s of t i t l e u n t i l i t i s c a nc e ll ed i n t h eproper manner.(29j There i s a danger of e rr or s i n copying the se memorialsand re fe renc es sev era l t imes. Th is recopyb g a l s o invo lves a cons iderab lem ou nt of time and labor. The resul t i s that the ger 'sonnel of the Regis-t r a r s o ff ic e must be adequate t meet these demnds both in calibre of workand in d ep en da bi li ty. s u f f i c i e n t l y l a rg e s t a f f i s r eq ui re d t o a t te n d t otSle many cl e r i c a l du t i es involved. I n a d d it i o n, t h e p a r t i e s i n i n t e r e s t mustcheck th e Xegis te r t se e th a t eve@hing has been prop erly ente red on theR e g i s t e r o f Ti t l e s . (30)

The du pl i cat e c e r t i f ic a te must a lways be produced in o r de r f o r t h eRe gi s t ra r t o i s s ue a -new one o r en t e r a memorial. n exception i s madewhen a n o r d e r o f c o u r t i s o bt ai ne d d i r e c t in g t h e R e g i s tr a r t o f i l e t h e in-s t r u me n t w i t ho u t p ro du c ti on o f t h e d u p l i c a te c e r t i f i c a t e o f t i t l e and e n t e r

t on the Regis te r. Th is o rder i s given by the court only when suff ic ientc a u s e i s shown. memorial of th e or de r of c ou r t nu st be made.(l) Also,

if the owner refuses~

p r o d u c e t h e d u p l i c a t e c e r t i f i c a t e a c o u r t o r d e r m y


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be obtained order ing hi- t o produce i t in court and present t t the Regis-trar ( 2 j

A f t e r the du p l ica te c e r t i f i c a t e has been endorsed by the Re gis t ra r withthe proper memorials i t i s re tu rned to th e reg is te re d owner who re ta in s i t

s p roof o f h i s t i t l e . The mortgagee o r o th er encunbrancer r ec ei ves a dup-l i c a t e copy of the mortgage o r o the r ins t rument fo r proof o f h i s c la im

aga ins t the p roper ty.

B ef or e r e t ur n i n g t h e d u p l i c a t e in s tr u me n ts a nd c e r t i f i c a t e s , t h eRe gi s t r ar must make pmp er e nt r i es in the name nd property indexes.

mortgage o r charge on reg is te re d property may be assigned o r re -leased.(3) I t i s advisab le t o di sc us s t he method of performing the se func-t i o n s a t t h i s p oi nt .

To as si gn a charge th e ho lder of such charge executes a w ri tt en assi&n-ment thereof. This i s f i l e d w i t h t h e R e g i s t r a r t o g e t he r w i th t h e d u p l i c a t eo r ce r t i f i e d copy of the ins t rument c rea t ing t he charge. The Registrar thene n t e r s a m en or ia l of t h i s as si gn me nt on t h e c e r t i f i c a t e of t i t l e in t h eReg is te r opposi te th e charge, a s ta tement of w h e t p r i o r i t y i t has, and a r e f -erence t o t h a t f i l e number noted on the assignment.

The R e gi s tr a r n ot es on th e i n s t m e n t f i l e d in h i s o f f i c e which c r e a t e dth e charge and the dup l ic ate of t h i s instrument presented t o him, th e volumeand page *ere th e memorialof th e assignment i s en te red and th e da t e o fe n t q . I r )

When pr op er ty i s soueht t o be assigned t he above procedure i s followed.When property i s sought t o be releas ed from th e e ff ec t of a mortgage o rother charge the procedure fol lowed i s t h e s m e a s in t h e t r a n s f e r of r e g i s-t e r e d p ro p er t y, e x ce p t t h a t n o new c e r t i f i c a t e i s issued. The instrumentwhich created the charge i s then stamped cancelledn by the Re gis tr ar.The memoria l o f the charge on the Regis te r and t ne du p l ic a te o r ce r t i f i edcopy of the instrument creat ing the charge i s a ls o s t a ~ p e d ~ a n c e l l e d . ~ ( 5 )

B. PROCEDURE IUJOLV, ?) N CFEAl LNC 1NVOLU::TAaY ENCW iiWCTS NR E G I S r n Z D LAm

The procedure involved in c r e a t i n g i n v o l u n t a q l i e n s i s similar t o t h a tfollowed in c r e a t i n g v o lu n ta r y l i e n s . The main difference, however, i s t h a tt h e d u p l i c a t e c e r t i f i c a t e n eed n o t b e pr es en te d t o t he R e g i s t r a r in order tauthorize him t o e n t e r a memorial o f t h e l i e n on t h e o r i g i n a l c e r t i f i c a t e int h e R e g i s t e r o f Ti t l e s . (6)

The types of i n v o l un t a r y l i e n s t h a t a r e most o f t e n e nc ou nt er ed c o n s i s tof : j u d w n t l i e n , a tt ac hm en t l i e n , mec han ic's l i e n , l i e n f o r t a x e s o rassessments. These w i l l be d i s c u s s e d b r i e f l y a t t h i s tim e.


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1 JLm m\ T L r n :

c e r t i f i e d copy o f th e j u d p e ~ t ust be f i l e d w i t h t h e R e g i s t r a r yt h e j u d p e i i t c r e d i t o r. t must c o nt ai n a n ot at io n t h a t r e ~ i s t e r e d m d i saf fec ted , th e namz of th e regi s te red owner, and t h e n - m te r of t h e l a s t c e r -t i f i c e t e of r e g i st r a t io n . The R e ~ i s t r a r must then en te r a menorial of t h a tj nd @n en t on t h e o r i g i n a l . c e r t i f i c ~ t e f t i t i e coverin t h e p r0 pe rt .y of t h ejudgmezt de bt or or? which it i s d e si r e? t o c r e a t e a j u d p e n t l i e n . U n t i lt h i s memor ia l i s e n t e r e d , n o l i e n i s in exis tence.(7) T h i s r e q u i r e s a l i e nc la imant to determine whether th e property ag ain st which he de si re s t o cre at ea j u d p e n t l i e n i s r e g i s t e r e d l a n d . t a l s o r e q u i r e s a d d i t i o n a l n o t a t i o n son the copy of the juc?gment. This caozes an cnddditional burden f o r t h e jueg-ment c red i to r. Vnder t he o r d k a r y Recording Sy.stem al l FI would have t o dowould be t o reco rd the copy of the jud-pen t i n the Recorder ' s o ff i ce . Immedi-at el y, t he j u d p e n t would become a l i e n aga ins t a l l p roper ty owned by th ejudgment deb tor i n t h a t county. a)

2 LI5N OF ATTACE F&T OH EXECUTIOX:

When a l evy of a t t achn en t o r execu t ion i s made on reg i s te red l and , the

o f f i c e r m king t h e l e v y i s required hy Sec t ion 92 of t h e Land Ti t l e Law tof i l e a c e r t i f i c a t e o f t h e f a c t of l ev y. (? ) n addi t ion , Sec t ion 5h of theCo5e of Ci v i l P roced xe s ta t es th a t when re a l p roper ty sub j ec t t o the LandT i t l e Law i s at tached a copy of the w ~ i t f a t tachment , tog eth er with ad e s c r i p t i o n bf t h e Torren s t i t l e c e r t i f i c a t e , a descr ip t ion o f the p roper ty,and a n o t i c e t h a t i t i s a tt ac he d s h a l l be f i l e d with t h e R e g i s t r ~ r f t i t l e sof the county. t should be noted th a t th i s sec t ion o f th e Code of C iv i lP ro ce du re a l s o r e q u i r e s t h e i n s t r u c t i o n s t o t h e s h e r i f f t o s t a t e t h a t t h er e a l p ro pe rt y t 3 be l e v i e d upon e i t h e r i s o r i s n o t r e g i s t e r e d un der t h e

and T i t l e L2w t c an be s ee n c l e a r l y i n t h i s i n s t a n c e t h a t t h e Land Ti t l eL w c r e a t e s a d d i t i o n a l work f o r a l l p a r t i e s co nc er ne d.

The Re gi st ra r then mdles a memorial of t h i s l ev y of attachment on tine

o r i gi n a l c e r t i f i c a t e on f i l e in t h e R e e i s t e r o f T i t k : F t t h r t tim e t h el i e n of t h e a t t a c h e n t becornes e f f e c t i v e .

When a Mechanic's L ien i s sou*ht t o be enforced aga in s t r eg i s te redp r o p e r t y i t i s ne c es s ar y t o r e co rd a n o t i c e of t h i s l i e n i n t h e CountyRecorder 's Off ice 2nd a ls o f i l e a Notice of Lien with t he Reg is t rar who makesa memorial of i t on t he o r i z i n a l c e r t i f i c a t e of t i t l e t o t he p ro pe rt y in-volved.(lO) T hi s n o t i c e o f l i e n must s t a t e t h a t t h e l a n d i s Torrens property,t h e name of t h e owner, and th e number of t h e c e r t i f i c 8 t e o f t i t l e c ov er in gthe p roper ty. t should be f i l ed wi th in the per iod a l lowed fo r record ings uc h l i e n . ( l l ) The p r o p r i e t y of r e q u i r i n g t h i s e x t r a s t e p h a s b e e n d i s -cussed by the cour t i n the case of Aamond Lunher Co. v Moore.(l2) I n t h i scas e a mater ialman had furnished mate r ia l s f o r a bui . lding t o be ere cte d onr e g i s t e r e d p r o p e r t y. He then recorded a no ti ce of hi s mechanic's l ie n , but


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f a i l e d t o f i l e i t u i t h t h e R e gi s tr a r. s a consequence, he was no t permit-t e d t o e n f o r ce a mechanic s l i e n aga ins t the p roper ty.

mechanic s l i e n i s provided f o r by Ar t i c le N ec t ion 2 of theC a l i f o r n i a C o n s t it u t i on . The method of enforcement of the l i e n i s l e f t t ot h e l e g i s l a t u r e u i t h o n l y t he l i m i t a t i o n t h a t t h e l i e n cl2 iman t i s n o t t o beunduly hampered in h i s e x e r c is e of t h e l i e n . The court in t h e Hammond ca se

did no t consid er th e requirement of f i l i n g th e Notice of Mechanic s Lien withthe Registrar as being unduly burdensome. It i s merely a supplementary stepwhich i s inc iden ta l to the genera l p rocedure invo lved i n the enforcement ofa mechanic s l i en . In a d di t io n , t h e c o u r t h e l d t h a t t h e a d d i t i o n a l n o t a ti o n sr e qu i re d t o be put on the Notice of Lien were not unreasonably burdensome.This information can rea di ly be obtained from th e indexes in t h e R e g i s t r a r so f f i c e and t h e o r i g i n a l c e r t i f i c a t e o f t i t l e .

s a practical matter, however, these requirements do put a mechanic na d i f f i c u l t p os it io n. He must determine a t his p er i l whe ther t he p roper tyi s reg i s t e r ed p rope r ty o r no t and ac t accord ine ly.

Sec t ion 9 of the Land Ti t l e Law s t a t es t ha t no l i e n i s crea ted u n t i lsuch no t i ce has been f i l e d w i t h the Regis t ra r. The court in t h e Hammondc a s e i n d i c a t e s by dict cm t h a t t h i s p a r t o f t h e s t a t u t e i s u n c o n s t i t u t i o n a l ,s i n c e t h e C a l i f o r n i a C o n st i t u ti o n p ro v id es t h a t t h e l i e n i s created whenthe mate r ia l s a r e fu rni shed . The legis la ture cannot change the date ofc r e e t i o n o f t h e l i e n , b u t m er el y i t s method of enforcement. Even if t h i ss e c t i o n i s u n c o n st i t u ti o n a l, t h e c o u r t h o l s s t h a t it i s separable f rom ther e s t of S e c t i o n 9 of t h e . d c t r e q ui r in g r e g i s t r ~ t i o n f s w h n ot i c e b ef or eenforcement of t he lie n. The conclusion i s t he re fo re , t h a t t h e l i e n i screa ted when the mate r i a l s a re fu rn i shed , bu t i f r eg i s te red p roper ty i s in-volved t he l i e n cannot be enforced un t i l th e Notice has been recorded andr e g i s t e r e d . 13)

b LIEN FOR T XE ND ASSFSSZNTS:

I n general , th e procedure fol lowed when th i s type of l i e n i s involvedi s similar t o the procedure ou t l i ne d above i n connect ion u i t h ot her involun-t a r y l i e n s. sp ec i a l p rocedure i s requir ed, however, when th e li e n i s en-fo rc ed pu rs ua nt t o an Ordinance fo r Publi c Improvement. When an Ordinanceof a c i t y , town, o r county i s passed t o l a y ou t, change o r r e p a i r s t r e e t s ,drains, c et er a o r make any oth er pub lic improvement, and th e expense i sto be pai d out of assessments made on re a l es ta te , the fol lowing s t ep s mustbe taken.

The Clerk of t he Board passin g the Ordinance must wi thi n days a f t e rth e Ordinance has been passed, f i l e a not ice o f i t s passage u i t h t he Regis-

t r a r and a memorial must be noted on the Regis te r. Ik)f th e Ordinance i s r ep ea le d, t h e o f f i c e r a ut ho ri ze d t o c o l l e c t t h e

a s se ss m en ts must w i th i n d a ys a f t e r t h e r e p e a l n o t i f y th e R e g i s t r a r i nwri t ing . The Re gi s t r ar w i l l then cancel t h e memorial . (15)


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Two ca se s, Board of Pension Comnissioners v Hu ri bu rt (l 6) and Xutledwev ity of ~ u r e k a m x ave pa ss ed on t h e e f f e c t o f t h e f a i l u r e of t h e o f f i c e rt o m i v e t h e o m p e r n o t i c e s t o t h e R e p i st rs r . These cases both held that therequiremeot of f i l i n q t he s pe cia l n ot ic e was merely d and f a i l u r e t of i l e d i d n o t a f f e c t t h e e x i st e n ce of t h e l i e n a g a i n s t r e g i s t e r e d p r o p e rt yf o r s t r e e t improvements. The re su lt would be th a t a subsequent purchaser orencumbrancer of t h i s pro perty would be su bje ct t o t h is l i e n al though i t didn o t a pp ea r on t h e o r i 2 i n a l o r d u p l ic a t e c e r t i f i c a t e of t i t l e . This, ofcourse, i s an i n s t a c e i n u hic h t h e c e r t i f i c a t e o f t i t l e does no t show th et r u e s t a t e of t h e t i t l e , and t he r ef o re , i s not conc lus ive ev idence o f t i t l e .For o ther ins tances i n which the ce r t i f i c a t e i s no t conc lus ive see Chapte r h

When re gi s t er ed prope rty i s u nd er t h e c o u r t ' s j u r i s d i c t i o n d ue t o aninso lvency, p roba te , o r equ i ty p roceeding , the t r an s f e r o f such proper ty i smade in th e manner re quired by St at e law. When th e co ur t orders a ss le , lea se,e t ce te ra o f such proper ty the decree must o rder th e Regi s t ra r t o i s s ue a newc e r t i f i c a t e of t i t l e o r make a memorial on th e e xi s t in g ce r t i f ic at e (which-e v er t h e c a s e r e q u i r e s ) in accord w i t the decree. 18)

The executor o r oth er par ty involved must f i l e a c e r t i f i e d c opy of t k i sdecree wi th t he R egis t ra r toge ther wi th a deed o r ins t rument execu ted i naccord wi th th a t decree and a ce r t i f i e d copy of the o rder conf irming the sa leo f t h e p r o p e r ty i f one i s requ i red . ( l9 )

The Re gi s t ra r u i l l then iss ue a new c e r t i f ic a te o r make a proper memor-i a l on t h e e x i s t i n g c e r t i f i c a t e a s r e q u ir e d by t h e c o u r t de cr ee . The cer-t i f i c a t e o r memorial i s then s ta t -ed t o be conclusive evidence i n favo r of

ll persons thereaf ter dependinr thereon. (20)

When r eg is te re d property i s s o l d by c o u r t or d er t o s a t i s f y a j u d me n t,t h e p ur c ha s er u n de r s uc h s d e must f i l e a c e r t i f i e d copy of t h e d e c re e ofof th e cour t o rder ing such sa le , toge ther w i t a confirmation i f requ i redand a c e r t i f i c a te o f the o ff i c e r th a t the t erms of the s a l e have been com-p l i e d w i t h. The property i s then t rw sf e r re d on the re g i s t e r and a newc e r t i f i c a t e i s s u e d t o t h e p u rc ha se r. ( 21 )

B PARTITION:

The owner of n undivided i n t e r es t i n reg i s te re d l and may br ing ana c t i o n f o r par t i t ion He must include as p ar ti es in such ac t ion a l l personstha t a re shown by the -Regis te r to have an i n t e r e s t in the property. He mustth en f i l e a not ice o f t h i s ac t ion wi th the Regis t ra r who en te r s a memorialthe reof on th e Regis te r. If the p roperty i s ordered so ld by the c our t a


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c e r t i f i e d copy of t ,he decree, a c e r t i f i ed copy of th e c .onf ima? .ion o f thesa le , and a c e r t i f i c z t e of t h e o f f i c e r makin: th e s al e, must be f i l e d wi?.ht h e R e g i s t r e r. The Reg is t r a r then t r en s f e r t the p roperty on the Regis te rand i s s u e s a c e r t i f i c ~ t e f t i t l e t o t he purcha ser.(2 2)

I f t he ~ r o p e r t y s merely al l ot te d t o var lou s persons, tnosf Dertonsmus t f i l e a ce r t i f i ed copy of the co ur t o rder wi th the Ree i s t ra r who i s sues

new c e r t i f i c a t e s t o t ho se ~ e r s o n s . 23)

If the owner of an undivided i n t e r e s t has given mortgace on t h i s in -t e r e s t and t h e p r o pe r ty i s then par t i t io ned , t h i s mortgage w i l l o n l y a f f e c tt h e i n t e r e s t which t h i s p a r t y n as in t h e p ro p e rt y a s s e t of f b y t h e p a r t i -t i a n . The Re gi st ra r must make a not at ion on th e instrument c re at in g th el i e n on f l l e i n h i s o f f i c e , s t a t i n g t h a t t h e p r op e rt y ha s been s o g a r t i -t i o n e d. new c e r t i f i c a t e i s tne r, i s sued co i~ ta in i ne memorial of t h i s l i en . (2b )

hhen a ny s u i t i n v o l v i n ~ : egi s te re d iand i s dismissed o r any judgments a t i s f i e d , t h e i n s t n m e n t showinc t h e d is m is s al o r s a t i s f a c t i o n must be f i i e d

w i t h t h e R e g i s t r a r by t h e p ro pe r o f f i c e r o r c l e r k of t h e c o u r t and c e r t i f i e sby the person f i l i n g tne ins t rument . The Registrar then cancels tne memorialo f such s u i t o r judgment on the c e r t i f i c a te of t i t l e and en te r s a memorial o ft h e d i s m i s s a l o r s a t . i s f a c t i o n .

'The same pi-acedure i s followed when a n a ttachment o r execut ion i s r e -l eas ed o r d i scharged . (25)

no t ice o f nendexy of ~ z i t eal in^ w i t h r e g i s t e r e d i a n d m u ~ % e f i l e dwi th the Re gi s t ra r and a menorial made on the re gi s t er . No no tic e of pen-dency of act ion i s piven u n t i l th i s has been done. Th is does no t a ~ p l y oa t ta ckve n t - sroceed ings when the o f f i ce r ma or r t i on o r o t her bodye n t i t l e d t o t he proper ty taken by eminent domain. 27)

F POVIE : OF -4T' t~Ii35Y:

Vhen a person i s i v e n a power o f a t t o r n e y t o a c t f o r a no th e r i n con-veying o r d e a li n g w i th r e g i s t e r e d l a n d , t h e i n s t r u n e n t ~ i v i n g im such power


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n u s t be f i l e d w i t 1 1 t he F L e ~ i s t r e r nd a m e m r i a l e n t e r ed on t h e o r i ~ i n a Lnd d u p l i c a t e c e r t i f i c a t e s . The scent ma:f on re l;ie%t have a cer t f f i e d

copy of the p o z r o f a t to rne y endorsed y t h e Regis t ra r.

Xevcxatlon : a power of' attorney i s made i n t he 5 anf: maulrr.

Khen an a p p ea l i s t ak en f r o x an~ c5ion under the Land P i t l n nw o rd e cr e e a f f e c t i n g r e g i s t e r e d l an d s t h e c l e rk 0: t h e c o u r t i n which t h e n o t i c cof appeal i s f i l e d must no t i f y the Reg i s t r a r who then en te r s a rnemnri~ l 3:t h i s a p p e a l . 2 9 )

When non-registered property i s involved and death of a >oink, ten an toccurs , t he su rv ivor mus t ob ta in a c o u r t o r de r t e r n h a t in u t h e j o h t ten an-c y Prob ate Code S ectF ms 1170-3175 prov i3e f o r th e procedure to be followeci n s uc h c as e .

t ' h e n r e g i s t e r e d p r o p e r t y i s i nv o lv ed and t h e j o i n t t en an c y i s t e m i -na ted by dea th Sec t ion 98 of t h e Land l i i t le Law req uir es t he sw viv or t op e t i t i o n t h e c o u r t f o r an orde r t e rm ina t ing th e jo in t , t ena r~cy nd o rde r-i n g t h e R e g i s t ra r t o i s s u e a new c e r t i f i c a t e i n t h e s u r v i v o r l s rime Noticeof t h e pendency of t h i s must, b~ f i l e d with th e Ree i s t r a r who no te? i t ont n e c e r t i f i c a t e . A f t e r n o t i c e m d h e a r i n ? t h e c o u r t o r d e r s t h e t e r m in a t io nof th e j o i n t tena?c:r i f it i s p ro pe r and o r d e r s t h e H e ui s t, r ar t o i s s u ene:I c e r t i f i c a t e t o t h e s u r v iv o r. The su rv iv or must then f i l e i i i t h the Rec is -t r a r a c e r t i f i e d c op y o f t h e d e cr ee a nd tnf: dnp1ic';ite c e r t i f i c a t e o f t i t l e( i f it i s a v a ~ l a b l e ) nd a a 'f ia a Tit a s t o w h eth er t h e p r n p e r t g i s t o beh e l d a s c o n v m i t y p r o p e r t y s r s e p a r a t e p r op e rt y. The H e g i s t r x w l l theni s s u e a new c e r t i f i c e t e i n a c c o r d a x e w i th t h e d e cr 5e o f c o > l r t , a cony o fwhich has been f i l e d wi th h i%.

he same procedure i s fo l loued when a l i r e e s t a t e o r homestead i s t e r -x i n a t e d . 2 9 )

Ehen ree i s t e red l and i s s o ld f o r d e l i ~ q u e n t a x . -~ , tne procedure i st h e sam a s t h a t i n v ~ l v e d when non-re?;istered lsnd i s so l4 fo- del inquent.t axes . The p r s pe r ty i s dec la rec l so ld t o the %ate , he ld by th e : ;t at s fo r5 years, a.?d t h e n s o l d a t a t ax s z l e t o t .he h iuhes t. h i ' j de r, who r ece i vesa deed to the prope r ty a f t e r oa ,yine h is b id . When r o ~ r e n s r o n e r t y i in-vo lved th i s purchase r a t t he t ax s d e mus t corn217 3 i t . h al+i t . ion?l rer,? l i re-ments a s f o l l o w s :


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The o u r c h as e r who buys r e ~ i s t e r e d r o p e r t y a t t a x s a l e n u s t , w i t h i nf ive days a f t e r t h e p u r c h a s e , f i l e a w ri tt en no ti ce of s ~ c h urchase w l t ntne R e ~ i s t r a r ' s f f i ce . He m ust f i l e a s u f f i c i e n t n m b e r o f c o p ie s t osend to pe r sons who have an in te re s t i n the pm per ty .

The Re g i s t r a r then en te r s a menor ia l of th i s purchase on th e o r i r in a lc e r t i f i c a t e of t i t i e i n h i s o ff ic e . He t h m ma il s t o :.he pe rso ns named i ntil c e r t i f i c a te md memorial s, a copy o f th e no t ice .(3U)

2. TPX DZED:

After th e purchaser pays the amount of h is b id , a deed to the proper tyi s i s s u e d to him. This deed must the n be presente d t o t he Re ei s t ra r whomakes a memorial of i t on the Reg i s t e r. Tn is f i l i n g o f the deed i s anagreement t o t r an s f e r t h e t i t l e i n e f fe c t . ( l ) The purchaser does not actu-a l l y r e c e i v e t i t l e u n t i l t h e f o li ow in g s t e p s a r e c om plied w it h:

1 Tie purchas er who holds t h i s t x de ed f i l e s w i t h t h e c i e r k o f t h e

Super ior Court an a p p l i c a t i o n f o r a d e cr ee showing t i t l e t o t h i s l a nd t o beves ted i n h im. 2 )

2 A f t e r p r o p e r n o t i c e i s g iv en t o a l l i n t e r e s t e d p a r t i e s , and a p ro -pe r hea r ing i s held, a decree i s r en de re d sh ou in g th e c o n d i t i o n of t n e t i t l eand who i s the owner of the property.

3. A c e r t i f i e d cop? o f t n e de c re e i s t he n f i l e d w ith t n e R e g i s t r a rwho i s su es a c e r t i f i c a t e i n accordance witin the t e rn s and cond i t ions of thed e c r ee . ( 3 ) The R e g i s t r a r c a n c e l s t h e o l d c e r t i f i c a t e i n t h e u s u a l manner.

A l l t h e s e f o r m a l i t i e s a r e r e q u ir e d b e f o r e a p u rc h a se r c an a c t u a l l y a c-q u i r e t i t l e t o r e g is t e re d p ro pe rt y a t a tax s a l e . These requirements are

f o r t h e p r o t e c t i o n o f t he o r i ~ i n a l w n s whose p r o p e r t y h as b een s o l d f o rde l inquen t tgxes .

%hen th e p ro?e r ty is f i r s t d e cl ar ed s o l d t o t h e S t a t e f o r t a xe s a ndbefo re the f ive yea r ho ld ing by t h e S t a t e , a similar procedure i s followed.The t a x c o l l e c t o r must l i i t h i n f i v e dzys f i l e a n o t i c e t h a t t h i s p r o p er t yhas been declared s o l j t o t h e S t at e . The Reg is t r ar than en te rs a memorialon t h e R e g i s t e r a nd m ai ls n o t i c e s t o t n e i n t e r e s t e d p a r t i e s . ( & ) S e c t i o n

of th e Land T i t l e Law s ta te s : TJnless such no ti ce i s f i l e d s h e r e i np ro vi de d, t h e l an d s h a l l be f o r e v e r r e l e a s e d f ro m t h e e f f e c t of s w h s a l e ,a nd no d ee d s h a l l b e i s s u e d i n p u r s l a n e thereof . The c a s e of n FteS e i c k ( 5 ) e c l a r e d t h a t t h e pr o v is i o n f o r n o t i c e w i t h i n f i v e d ay s i s mandatorysnd i f no t complied wi th a new s a le t o the S t a t e would have t o be deciare dand a n o t i c e f i l e d v i t h i n f l v e d a ys from t h e d a t e of t h a t s a l e . The fiveyea r pe r iod dur ing which t he S t a t e mus t ho ld and which i s th e pe r iod f o rrsdemption, begins runn ing from th e date of th e second s a le .


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If t h e p r o p e rt y a f t e r f i v e y e a r s1 h ol di ng b y t h e S t a t e i s not pur-c ha se d b y a p r i v a t e i n d i vi d u al , a d eed t o t h e p r o ~ e r t y s piven t o th eS t a t e . This deed must then be f i l e d with th e Reg is tr ar who i ss ue s a newc e r t i f i c a t e of t i t l e t o t h e S t a t e and ca nc el s t h e o ld c e r t i f i c a t e . I t i snot nec essam i n th i s case t o ob ta in a decree of cour t a s requ i red whent h e p ur ch as er a t t h e t a x s a l e i s a p r iva te ind iv idua l . 6 )

If the owner of the pronerty redeems the oroperty during the per iod

of redemption, a c e r t i f ic a te of redemption must be f i l e d with the Regis-t r a r . The Registrar then cancels the memorial of t h e s a l e t o t h e S t a t eupon t he c e r t i f i c a t e of t i t l e . 7 )

S e c t i o n 97 of t he Land Ti t l e Law requ i res changes i n a c e r t i f i c a t e t obe made i n the manner provided by Section 98 of t h e s t a t u t e . Sec t ion 98r e q u i r e s a p e t i t i o n t o t h e c ou r t, n o t i c e nd a hearing. This i s discussedi n more d e t a i l below.

The grounds fo r cor rec t ion , a l t e r a t io n , o r canc e l la t i on a r e a s fo l lows :

1 4 n i n t e r e s t a pp ea ri ng on t h e c e r t i f i c a t e h a s t e r mi n at e d o r c e as ed .see discussion of terminat ion of jo in t tenancy above) .

2 New i n t e r es t s have a r i se n which a re no t shorn on the ce r t i f i c a t e .

3 The c e r t i f i c a t e o r memorial has been made by mistake..b Change of name.

5 Owner registered as married i s no longer married.

6. Corporation has been dissolved.

7 Any other reasonable ground.

person in i n t e r e s t b e g h s t h e p r o c e e d i n g s by a p e t i t i o n t o t h e c o u r t .The c o u r t t h en i s s u e s ul ord er f o r a summons to be issu ed to a l l p ers on s int e r e s t e d i n the p roper ty. Af te r se r v ice i s made on these pa r t i e s and no t ic egiven to the Registrar who makes a n o t a t i o n o f t h e p e t i t i o n on t h e c e r t i f i -c a t e , a h e a r in g i s held. The co ur t then gra nts an o r d e r to t h e R e g i s t r a r t omake the correct ion i f the cour t de termines t i s necessary.

A c e r t i f i e d co py of t h e c o u r t o r de r i s t h en f i l e d w it h t h e R e g i s t r a rvfio makes the correction.

n i l l u s t r a t i o n of t h e o pe r a t io n o f S e c t i o n 98 of the Land T i t l e Lawp r o v id i n g f o r c o r r e c t i o n o f a c e r t i f i c a t e i s as follows:


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Blackacre, w xc h was reg is ter ed in 0 s naqe, was owned by 0 P judg-ment and attachment had been obt ain ed ag ai ns t by a c r e d i t o r of and hadbeen entere d on the ce r t i f i ca te of t i t l e coverinz Filackacre, by mistake.

was not th e owner of Blackacre and the property wes not r e ~ i s t e r e d n X snane. Pn ar ti on was brou-ht by t o have th e memorial of t h i s j u d p e n t re-moved. This i s a p roper s i t ua t i on i n which to b r i ne an ac t ion under Sec t ion9 and t he c ou rt would ord er t he Re gi st ra r t o remove th e memorial of th ej u d p e n t . ( 8 )

Nore se r io as nro5lems ar e presented, hme ver , when ri p ht s of bona f i d epumh?sers are involved. Sect ion 98 s t a t es t h at the cou rt may not impairth e r io ht s of a bona f i d e purchaser even in connec t ion wi th the cor rec t ionof a c e r t i f i c a t e o f t i t l e . I n add i t ion , Sec t ion 98 does no t pe rmit th ec m r t t o open t h e o r i g i n a l d e cr ee of r e g i s t r a t i o n i n a p r oc ee di n? t c o r r e c ta c e r t i f i c a t e . t would seem th a t t h i s s ec ti on has been overlooked and dis -r eg a rd ed by t h e c o u r t i n s e v e r a l d e c i s i o n s d i s cu s s ed i n c o m e c t i o n w it h t h ei nc on cl us iv en es s o f t h e c e r t i f i c a t e of t i t l e .

Sec t ion 8 of th e Torrens Act provide s f o r a sim ple r method of a changeo f name i n a c e r t i f i c a t e . The owner whose name in co rr ec t l y was re gis te redo r becomes changed, may f i l e an appl ica t ion wi th the cou r t f o r a change ofname i n t h e c e r t i f i c a t e . hben he proves the requis i te fects and producest h e d u p l i c a te c e r t i f i c a t e t h e c o u r t o r d er s t h e new c e r t i f i c a t e t o b e i s su e db y t h e R e g i s t r a r w i t h t h e nece ss ar y chmee i n name. This may be heard anda c te d on by t h e c o u r t wi th o r w it ho ut n o t i ce , i n i t s d i s c r e t i o n . This methoda p pe ar s t o e th e s o l e method of change of name when mar ria ge i s inv olved .T f the change of nane i s f i r some other reason ei ther the procedure in t h i sSect ion 28 or the procedure in S e c t i o n 98 discussed above may te u se d t oa c q u i re t h e n e c e s sa r y change i n t h e c e r t i f i c a t e .

When a deed or o th er i nst rum ent i s f i l e d w it h t h e R e g i s t r a r, t h e a d d r es sof the grante e must be contained i n the deed. I f t h e a d d r e s s i s changed a

wr it te n ste tem ent of such change, du ly acknowledged, must be f i l e d wi th t h eRegis t ra r. The Registrar then endorses t h i s change on th e deed o r oth er instrument. 9 )

When a dup l ica t e ce r t i f i c a t e i s l o s t o r destroyed the owner of reg-is te re d pr ope rty may auply + t h e c o u r t f o r an o r d e r d i r e c t i n g t h e R e g i s tr a rt o i s s ~ e c e r ti f ie r ? cop7 of t h e o r i g in a l c e r t i f i c a t e . The court grantssuch order a f t e r p roper no t ice and hearing . c e r t i f i e d copy of t h e o r d e rmust be f i l e d with t he Reg is t ra r who then makes a c e r t i f i e d copy of t heo r i g i n a l c e r t i f i c a t e a nd n o t e s on t h e R e g i s t e r t h e f a c t of t h e i s s u an c e oft h i s c e r t i f i e d copy. ( 10 )

ce r t i f i e d copy may a l so be i s sued by the Regis t ra r f o r use a s ev i -dence upon c ou rt or der. Similar notations are made as described above. (11)


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Pr io r t o Novenber 1950, pr op er ty could not be withdrawn from th e '?w ren sSystem. Due t o t h e d i f f i c u l t i e s c onn ecte d w it h r e ~ i s t e r e d r op e rt y a measure(p ropos i t ion EL was passed i n November 1950 pem Ltt in5 r e ~ i s t e r e d vrners t o

withdraw t he i r p roperty. Sec t ions b8 .1 t o L8 9 were added t o th e IanC Ti t i ew and provide f o r th e followin,: procedure f o r urithdrawal:

The regi s te red owner f i l e s with h e He ; is trar of t i t l e s a v e r i f i e dp e t i t i o n f o r wi th dr aw al s t a t i n g :

1 The names of the registered owners.

2 The name of th e per son i n whose name t h e pr op er ty was o r i g i n a l l yr e g i s t e r e d .

3 Descrip t ion of t he property.

I r Nvmber of l a t c e r t i f i c a te of t i t l e .

5 ' b e and ad dr es s o f a l l p er so ns w it h a n i n t e r e s t i n t h e p r op er tya s shown on th e l s s t c e r t i f i c a t e .

6 . Request that the property be wishdrdwn and put back under theprov is ions o f the genera l record in^, laws.

The d u p l ic a t e c e r t i f i c a t e o f t i t l e must b e p re se nt ed t o t h e f i e f i s t r a rf o r c a n c el l a t io n . Xben t h e a bove p e t i t i o n i s f i J e d t h i s c e r t i f i c a t e mustbe f i l e d wi t h it The R e g i s t r z r t h e n c a n c e l s t h e o r i g i n a l an c d u p l i c a t ec e r t i f i c z t e s an d i s su e s a c e r t i f i c a t e of t h e c a n c el l a t io n of t h es e c e r t i f i -ca tes and withdrawal of t he land.

The Regis t ra r then mkes a no ta t ion of th e fa c t o f i s suance of t h i sc e r t i f i c a t e of w it hd ra wa l in t h e Regis ter of Ti t l es and notes th e same int h e r;e and propzrty indexes. He then fil s a copy of t h i s c e r t i f i c a t eKith the docuaents ttiit have been f i l e d i n connect ion wi th the l a s t cer-t i f i c a t e o f t i t l s

The l as t c e r t i f i c a t e of t i t l e and c e r t i f i c a t e of w it hd ra wa l a r e t h e nrecorded xLth t h e County Recorder of t h e county i n which th e land l i e s anda r e r e tu r ne d t o t h e R e g i s t r w t o be f i l e d w it h a n o t at i on of t h e f a c t andplace of recording endorsed on then.

The i iecorder then indexes the cer t t f lcate of withdrawal and the c3n-c e l l e d c e r t i f i c a t e of t i t l e un der t h e n ane of e ac h p r s o n s h a m on t h e cert l f i c a t e of t i t l e t o have an i n t ~ r e s t n t h e p r o pe r ty and under tho n:xs oft h e l a s t r eg is te re d m e r and t h e f i r s t r eg i s t e rs 3 m e r .


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When t h e s e c e r t i f i c a t e s a r e r e c or de d t h e p r o p e rt y i s a g a i n s u b j e c t t othe recording acts and l l subsequen t pa r t i es dea l ing wi th the p roper ty a redeemed to have c on s tn ~c t i v e ot ice of a l l documents fi l e d p rev ious ly witht h e r e g i s t r a r i n c o n ne ct io n w i th t h i s p ro p er ty

Withdrawal does no t a ff ec t the o r ie in a l de te rmina tion of t i t l e by th ec o u r t i n t h e i n i t i l re g i s t ra t io n p roceed ings ll instrwments f i l e d witht h e R e q i s t r a r in connec tion wi th th a t p roper ty a r e then pa r t of the recordc h ai n of t i t l e

I f any person has not consented t th e withdrawal he sh a l l cont inue t ohave any rights against the Insurance fund which he had before withdrawal


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Land Ti t l e Law, Se ct io n LL

Ib id , Sec t ion 110 .

Ib id , Sec tio ns &8 and 53.

Ib id , Sec t ions 7 and 53.

I b i d , S e c t i o n 5 .

I b i d , S e c t i o n 8. Fitzsimmons v Raiche, 63 C a l App ( 2) 398.-

Land Ti t l e Law, S ec ti on 55, Sec t ion 32

Thompson, Rea l roper ty (Perm. Ed.) Vol. 8, Sec. 15.

See 7 Ce l i fo r n i a Law Review, p. 75 f o r f w t h e r i t em s i n c on ne ct io nith the Torrens System that are time consuming.

Land T i t l e Law, Se ct io n 58.

1 0 A Genl's Q &2.Land T i t l e Law, Se ct io n 50.

Ib i d , Sec t ion &8.

Ib id , Sec t ions 51 and 52.

I b i d , S e c t i o n8.

Ib id , Sec t ion 32

151 C a l LO. This cas e decla red the 1897 St at ut e which w s t h e f o r e -runner of th e present Lmd Ti t l e Law con st i tu t io na l . The 1897 St at u tewas e n t i t l e d Act f o r t h e c e r t i f i c a t i o n o f l a nd t i t l e s and t h e simp l i f i c a t i o n o f t h e t r a n s f e r of r e a l e s t a te , " a l. S t a t s . 1897, p. 138.This case of Robinson v Kerri an has subsequently been considered asa pp li ca bl e t o t h e l a t e r 7 p9 1 s t a t u t e which i s our presen t Land Ti t l eLaw i n France s Investment Co. Su pe rl or Court, 89 Cal 107 nd a l s o

n 1 0 Atty Genlts w. 42, G t h of th es e ca se s assumed i t s a p p l i -c a b i l i t y wit-uch discussion. The quest io n of co ns t i tu t i on al i t y

has never been raised i n any detai l s ince the Robinson case. SeeChapter of th i s paper f o r a more thorough discus sion of the const i -t u t i o n a l i t y o f t h e Land T i t l e Law (T orrens Act). See also Powell,


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Richard R., R&strrtion 3f th e T i t l e t o Land i n th e S t a t e of New York 7(1538), pr ep ar ed f o r t h e hew York Law So ci et y Under a r a n t From theCarnegie Corporation, Supplement A p. 89. See 7 Cal if o rn ia Law Review

. 75 f o r a cons idera t ion of the ques t ion of t he r i ~ h t f th e Recordert determine the effect of documents deposited w i t h h i n , which i s ac o n s t i t u t i o n a l q u e s t i o n .

18. &6 Cal App 363.

19. Land T i t l e Law, Se ct io n 53.

20. bid , Sectio n &9.

21. bid , Sec t ion 53

22. b i d , S e c t i o n s S& and 7.

23. w S e c t i o n 50.2L. I b i d , S e c t i o n 60.

I b i d , S e c t i o n 51.5

26. b i d , S e c t i o n 61.

27 G ect i on 62. .28. bid, Sections 67-70.

29. b i d , S e c t i o n &3.

7 C a l i f o r n i a a w Review, p. 75. See Chapter o r a f u r t h e r d i s c u s s i o nof t h e d e f e c t s i n the Torrens System. Part IV

Land T i t l e Law, Se ct ion 60.=*

2. Dr ex le r Hufn asel, 76 C a l App 2 ) 606.

3. Land Ti t l e Law, Se ct io n 63.

k w ection 63.

5. b i d , S e c t i o n 6 .

6 i d , S e c t i o n 60

7. w Sections 95 and 91.


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9 7 Ca1ifom.ia Law Review 75.

9 Lend T i t l e Lav, Se ct io n $2.

10. O@en, PI B., Ou tl in e of Land T it le s (l?h,li:), Chapier XY

11 7 Ca li fo rn ia Law Review, p. 87, f oo tn ot e 829 .

12. lo C a l App 528.

13. See 7 Cal i fo rn i a zw Review, p. 7 5 f o r a conclus ion cont re to theHm on d case. This , of course, was wr i t t en before th e cou rt h dpassed on t he cons t i t u t i ona l i t y o f t h i s p a r t o f t he Tor rens S t a t u t e .

fi Land T i t l e Law, Se ct ion 5 .

15 bid , Sec t ion 9L.

16 7 Cal App ( 2 ) 568.

17. 195 Cal LO .

18 Lvld Ti t le Law, Sect ion 72. In 1931, Probat e Code Sec tio n 1723 re -u i r * , ~ t h e c o u r t t o i n cl u de i n t h e d ec re e an o r 6e r t o t h e R e y i s t r a -

t o i s s u e a new c e l- t i f i c a t e when r e e i s t e r e d ~ r o p e r t s s orderec soldn a probate proceeding. This s the same as required by Land Tit leaw, Section 72.

19. Land T i t l e Law, Sect io ns 71, 72, 73. Sect ions 7l.1 and 75 i n d i c a t ewhen a conf i rmat ion i s requi red .

20 Land T i t l e Law, S ec ti on s 7 and 76.

21. Ib id , Sec t i on 88

22. b id , Se ct io ns 811, 10L, 86.

23. --bid Sec t ion 85.

2 . b id , Sec t i on 87

25. bid , Sec t ions 90 and 94 .

26 . b id , Sec t i on 89.

27. I b i d , S e c t i o n 101

28. bi d, Se cti on 107.


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29 T i t l e I n su r ~, nc e 7 r ; l ~ t Compu;yts Handkook Aor Title Ken (19LH)p l i r5 2nd i 6 .

30 Lznd Title Law S e c t i o n 30. Sec t ion 6 s t a t e s t h a t when s t c h n o t a t l o nz s been made a t r u l s f ' e r of t h e p r o p e r t y must s t a t e t h ~ t t i s s nt ;j ec t

t o ' ,he ta x ss l e and t h e new c e r t i f i ca te i s sued must so s t e te .

1 bid, Se ct io n 78.

2 Ib id , S wt io n 78.

3 bi d, Se cti ons 75, 80, 82.

k Land T i t l e Law, S ec ti on 77.

5 k C n l App 363 Discussed i n ca se note , 8 C al i fo rn i a Law Review,p h50

6 bi d, Se cti ons 78, 81.

7 b i d , S e c t i o n 83

8 Pionee r Ab str act tc. Co. v Fereud, 9 Cal App 278 i s a case involvingfac:,s similar t o t h i s i l l u k s t i o n although complicated by o t h e r f a c t o r s .

7. Land Title Law S e c t i o n 5b

10 b i c l , S e c t i m 27

11 x e c t i o n 27


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Chapter : ? FECT OF XGISTXATICX OF F'F ?EEiZ U N T K TO3REXS SYSTElBy Universi ty of Southern Cal i fornia;

The advocates of the Torrens Registration System claim that i t hastwo primary objectives. These co ns is t of (1 ) a sim pl ifi ed method ofconveyancing of r e a l propert y and ( 2 ) a c o n cl us iv e d e te r mi n at i on o f t i t l e

to property. The uayin

which these two o b j e c t i v e s a r e to b e c a r r i e d o u thas been discussed in d e t a i l in fo r uer chapte rs . The findL question ofwhether e i th e r of these two o b j e c t i v e s h as a c t u a l l y b ee n c a r r i e d o u t i np r a c t i c e to ar5p & r e a t e x t e n t i n C a l i f o r n i a r e m i n s t be analyzed in t h i schapter. The q u e s t i o n ca n b e s t b e i l l u s t r a t e d by the following example:

A i s th e reg i s t e re d owner of Blackacre , which he des i res t o s e l l to PA execu tes a deed covering th e property, corneying i t t o P The deed,t o g e t h e r w i t A s d up li ca te c e r t i f i c a t e of t i t l e to the p roper ty i s givento t h e r e g i s t r a r. The r e g i s t r a r a f t e r making a p p r o p r i a t e e n t r i e s , i s s u e sa c e r t i f i ca t e o f t i t l e to t h e p r o pe r ty t P. Theore t i ca l ly, P has a t i t l eto th e proper ty which i s s u b j e c t on y to the encumbrances and i n t e r e s t sl i s t e d on h i s c e r t i f i c a t e . These encu nbra nces and i n t e r e s t s i n t u r n

would be based on t h e encumbrances and i n t e r e s t s a pp ea ri ng o n t h e o r i g i n a lc e r t i f i c a t e of t i t l e which i s f i l e d in t h e r e g i s t r a r ' s o f f i ce . P i s ,t h e o r e t i c a l l y, a l l o w e d to r e l y co mp letely on t h e s t a t e of t h e t i t l e a s i ta pp ea rs i n t h i s c e r t i f i c a t e . T hi s e l i n 5 n a t e s l on g, t e d i o us t i t l e s ea r ch e sand ny off- the-record mat ters such as fraud, mn-deliver?. of a deed i nt h e c h a i n o f t i t l e , e t c e t e r a , which ha ve b ee n n o te d a s s e r i o u s d e f e c t sconnected niih the recording system. The p ic tu re a s pa in ted in t h i s wayi s v e r y s a t i s f a c t o r y. t p ro vi de s a method o f a c q u i r i w p e r f e c t t i t l ep r o t e c t i o n similar to the reg i s t ra t io r. sys tem used in connect ion with thet rans fe r o f motor veh ic les . n ad di ti on , th e Torrens System makesp r ov i si o n f o r a n Assurance Fund to p r o t e c t a g a i n s t l o s s f r o m t h e o p e r a t i o nof t he System. The outward sim pl ic it y of th e system i s very appealing.

t appears to answer a l l t h e pro ble ms t h a t a r e p r e s e n t in t h e recordingsystem and f u r n i s h i n s u r a n c e a g a i n s t l o s s .

In ac tu al prac t i ce , however, it h as be en fou nd , p a r t i c u l a r l y i nCal i fo rn ia , that th e purchaser does no t rece ive t he per f ec t p ro t ec t ionout l ined above. I n fa c t , on a c lo se r s c r u t i q o f the Torrens System i nC a l i f o r n i a , i t is d i sc o ve r ed t h a t h e i s a c t u a l l y s u b j ec t to many i n t e r e s t swhich do no t appear on the ce r t i f i ca te and many of which could be discoveredonly by a t ho ro ug h i n v e s t i g a t i o n o f t h e o r i g i n a l p r o c e e d h g s i n which t h eproper ty was i n i t i a l l y brought under t he Torrens System. Wherever the pur-chaser is , i n f a c t , s u b j e c t to i n t e r e s t s not a p p e a r i n g o n t h e c e r t i f i c a t e ,the Torrens System breaks down and f a i l s to achieve i t s m in purpose ofp ro v id in g a c o nc lu si ve c e r t i f i c a t e o f t i t l e .

The purchaser s s u b j e c t to v a r i o us i n t e r e s t s ( n o t ap pe ar in g on t h ec e r t i f i c a t e ) by reason of s t a t u to ry p rov isions . These inc lude var ious sho r t


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term leases , t x l i e n s , c e te r a , l i s t e d in t h e Land ntle Ian and discussedbelow. O th er i n t e r e s t s n o t shown on t h e c e r t i f i c a t e a f f e c t t h e s ub se qu en tpurchaser by reason of jud ic ia l dec i s ions . These inc lude in te res t s o fp a r t i e s no t p r o pe r ly n o t i f i e d in t h e o r i g i n a l p ro ce edin g f o r r e g i s t r a t i o n o ri n t e r e s t s o f parties f raudulent ly omit ted from the or iginal proceedings,c e t e r a .

I n a d d i t i o n to thes e matters , a purchaser mus t always guard hisc e r t i f i c a t e o f t i t l e a ga in st l os s. This i s impor tan t a s i s shown by t h ef o l l o w i l l u s t r a t i o n :

P th e purchaser of Blackacre , lose s h i s dup l ic a te ce r t i f i c a te . X at h i e f , f inds t h e c e r t i f i c a t e , f o rg e s PIS name t h e c e r t i f i c a t e a ndt r a n s f e r s it to B a bona fi de purchaser. P has no r i g h t a g a in s t B s i n c et h e c e r t i f i c a t e r ep re se nt s t i t l e and B has acquired it in good fai th . P i sl e f t w i t re co ur se ag ai ns t th e Assurance Fund, which is a t best, merely anmnetary s u b s ti tu te f o r t h e Land which he purchased. The f i n a l d i s i l l u s i o n -ment in t h e C a l i fo r n i a s i t u a t i o n , i s that the Assurance Fund has beenbankrupt, lea vin g P w i t h a worthless claim. This appears to b e r a t h e r asev ere har dship when th e owner had no t been ca re les s o r negl ige nt i n l o s i n g

h i s c e r t i f i c a t e .O f

course,in

o r d e r to msintain the system of a conclusivec e r t i f i c a t e B nus t be p ro tec ted and must rece ive t i t l e t the property.However, i t seems that some sa t i sf ac t i on should be allowed P f o r his l o s s .

These defects w i l l be d i scussed i n g re a te r d e t a i l below under thef o l l o w i n g h e x 3 ngs :

1) I n t e r e s t s n o t a pi je ar in g on t h e c e r t i f i c a t e to which a'purchaseri s s ub je c t by s t a t u t e .

2) I n t e r e s t s n o t a pp ea rin g on t h e c e r t i f i c a t e due t o d e f e c t s i n t h ei n i t i a l proceed ings fo r reg i s t ra t ion .

I n t e r e s t s n o t a pp ea ri ng on t h e c e r t i f i c a t e which r e s u l t fromd e f e c t i v e t r a n s f e r s in t h e ch ain o f t i t l e .

k ) Events subsequent to purchase of regis tered land which cause losso f t h e p u r ch a s er ' s t i t l e (e.g. f r a u d nd forgery).

11. IBTERESIS NUT APPE;ARING N THE CERTIFICATE W H I H A PURCHASER:ISSUEJFCT YSTATLTTE

Sec t ion 31 of the Land Ti t l e Law s t a t e s t h a t a r e g i s t e r e d o u n e r h o l d sh i s p r o p er t y s u b j e c t to such es tat es , mortgages, l i en s , charges and in te re st swhich are noted in t he l a s t ce r t i f i c a t e o f t i t l e EXCEPT:

1. Any s u b s i s t i n g l e a s e o r a gre em en t f o r a l e a s e f o r a per iod no texceeding one year , where th e r e is a c t u a l oc c up a ti on o f t h e l a n dunder lease. The term lease s h a l l include a v e r b a l l e t t i n g .


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2 All land embraced i n t he descript ion contained in t h e c e r t i f i c a t ewhich has th eretofor e been leg al ly dedicated a s or declared by acompetent cour t t o be a p ubl ic h i~hway.

3 q y su bs is t ing r i g h t of way o r other easenent, created within oneyear be fore i s s ue of the ce r t i f i c a t e upon, over, o r i n respec t ofthe l and .

A q ax or sp ec ia l assessment for. which a s a le of the land has notbeen had a t th e d a t e of t h e c e r t i f i c a t e o f t i t l e . ( l )

5 Such r i g h t o f - a c ti o n o r c la in a s i s allowed by t h i s ac t.

6 Liens , c la ims , o r r i gh t s a r i s i ng under the l a w s of t he U ~ t e d t at e s ,which th e s t a t u t es o f Ca l i fo rn ia can no t requ i re to appear of recordupon the regis ter."

Although sect ion 6 of the Land Ti t l e Law r e q u i r e s s e c t i o n 3k to be pr intedon t h e c e r t i f i c a t e of t i t l e as a memrandum to the holder, t does not requires p e c i f i c a t a t o appear there . This means that a purchaser map be forced toi nv e st ig a te p e r s o ~ a l l y o determine whether a rq s ho rt term lea ses , ft c e t e r ae x i s t which would a f f e c t h i s i n t e r e s t i n the property but which do not appearon t h e c e r t i f i c a t e o f t i t l e f i l e d w it h t h e r e g i s t r a r an d which would n ot ,t h e r e f o r e , a pp ea r e i t h e r o n t h e d u p li c a t e c e r t i f i c a t e which h i s c a n t o r sur-r en de re d o r t h e d u p l i c a t e c e r t i f i c a t e i ss u ed to the purchaser himself .

111. INTEXES'l'j NOT APPEARING h THE CETIFlCATE UE T DEFECTS N THE:INITIAL P?DCE aiNtiS FUR B'c'GISmTiOid.

The magoriiq of cases a r is in g under t h i s sec t ion have been the re su l tof l a c k o f j u r i s d i c t i o n o f t h e c o u r t in t h e o r i g i n a l r e g i s t r a t i o n p r o c e e d -ings. This may have been caused by f a i l u r e to se rve par t i e s who had in t e r es t si n t h e p r op e rt y a t t h e t im e o f t h e r e g i s t r a t i o n p r o ce e dh g s; t nay have beencaused by the cou r t ' s l ac k o f j u r i sd i c t i on over the p roper ty which u s t h es u b j e c t of t h e a c t io n ; o r by var ious o ther cons idera t ions . In cases wheret h e r e h s been such a l a c k of j u r i s d i c t i o n t h e c o u r ts in California havea l lowed the decree o f reg i s t ra t ion to be at tacked and s e t a s i d e r e g ar d l es s oft h e f a c t t h a t t h e p r op e r t y had be en t r a n s f e r r e d t o a bona f id e purchaser andr e g a r d l e s s o f t h e p r ov i s io n s in the Land Ti t l e Law making t h e d e c r e e o f : r e g i s -t r a t i o n nd t h e c e r t i f i c a t e o f t i t l e i ss ue d t h e r e a f t e r c o nc lu si ve a s to t h es t tus o f th e t i t l e .

m e f o ll o wi n g c a s e a f f o r d s a n i l l u s t r a t i o n o f t h e a bo ve d is c us s io n :

0 owner of Blackacre, b rought an ac t ion t o have h i s p roper tyregistered under the Torrens System. He f ai le d to name X (who w s

occupying a s m l l s e c t i o n o f B la ck ac re ) i n t h e p e t i t i o n a nd X was n o tgive n persondl se rv ic e of th e p et i t io n and summons. The Land T i t l e h w


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requi res persona l se rv ice to be given to all occupants of the propertysought to be registered. X, having no knowledge of the registrationproceedings fai led t appear and consequently th e pro perty was de creed tobe reg is te red in the name of 0, with no mention of X s interest which u sbased on a boundary agreement previously made with 0 S e ve r al y e ar s l a t e rthe property was sold to a bcn fide purchaser, P, who had no ac t ua l n o t ic eof X s i n t e r e s t . X brought a n ac t ion to q u i e t t i t l e and s e t a s id e t he

decree of r e g i s t r a t i o n so t h a t he cou ld a s s e r t h i s i n t e r e s t i n Blackacreaga in s t P. The cour t i n Swartzbaugh v. Sargen t(2) under f a c t s sim il ar tthose out l ined above, held that X was-entitled to s e t as ide the decree ofr e g i s t r a t i o n a nd a s s e r t h i s i n t e r e s t i n t h e pr op er ty. The court held thatf a i l u r e to give the not ice required by s t a t u t e in th is instance meant a tno due process had been given to X. 3) This holding was given in s p i t e o fSect ion 6 of th e Land Ti tl e L a w which states I . . o person taking at r an s f e r o f r e g i s t e r ed l an d , sh l l be held t i nqu i r e into thecircumstances under uhich, o r th e co nsidera tion f o r which, such owner orany previous reg is te re d otmer was reg ister ed, o r be aff ec ted with notice,ac tu a l o r cons t ruc t ive , o f any unregistered t r u s t , l i e n , claim, demand, o rin te re s t; and the knowledge th a t unregistered trust, l i e n , demand, o ri n t e r e s t in existenc e s h a l l not of i t s e l f be imputed a s fraud. This

dec ision , o f course , v io l a te s the pr inc ip le t ha t the decree and cer t i f i ca teo f r eg i s t r a t i on are to be considered conclusive evidence of t i t l e andbreaks down the operation of the Torrens System to a considerable extent.(ir)The resul t i s that the purchaser must check the records prior to t h e i n i t i lr e g i s t r a t i o n and invest igate the premises to f i n d any outs tanding in te res t sof p ar ti e s who were not properly no ti fi ed in t h e i n i t i a l r e g i s t r a t i o np r o c e e d i n ~ s o r run the risk of losing the property uhich he has purchased,perhaps years later

When the re has been a lack of j ur is di ct io n in t h e o r i g i n a l r e g i s t r a t i o nproceedings, there i s no limit on the time within uhich the decree m y es e t a si de . t wwld seem, however, t h a t a person who d e l i b e r a te l y f a i l e dtc br ing such ac t ion v l th i n a reasonable t ime a f t e r d i scovery of h i s r igh ts ,might be precluded by laches from assert ing his i n t e r e s t .

When t h e o r i g in a l dec ree of r eg i s t r a t i o n h s been rendered and t he r ehas been mistake, fraud, o r inadv ertence connected therew ith, th e decree maybe s e t as ide wi th in a s ta ted per iod. (S) This however, would no t a f f e c t th erights of a subsequent bona f id e purchaser of the regi stere d property. Hisrights would be affected only i f there were a lack of jur isdict ion in theor ig in a l r eg is t r a t i on proceedings .

IV INTERESTS NOT APPEPRING O N THE CERTIFICATE JHICH RESULT FmM~ F P E C T I V E ~ ? E X ? N ~ I BF T I T L E

In the repart on the California RecordFn,~ Syste-. i t w s shown tha tde fec t i ve t i t l e s o f t en r e su lt e d from fl ws appearing in the .chain of t i t l e .For example, P purch ases Blackacre from 0, th e reco rd owner. The recorddoes not, however, in di ca te t h a t 0 acquired Blackacre from th e former


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o m e r X by means of fra ud o r forgery. P although a purchaser i n goodfaith would lose the property to X s b c e no t i t l e had passed to 0, and thusP had acquired no t i t l e . There are various other flaws in the chain oft i t l e which af fe c t a purchaser s t i t l e under the ordinary recording system,but of which he would have no notice fron the record.

The priAla~y purpose of the Torrens System i s to eliminate such s i t u a -t ions . A bona f i de purchaser who re l i es on a c er t i f ic a t e of t i t l e coverkg

the property heis

purchasing would be protected ag ain st a forg ery, fraud,fa i l u re of considera tion, cetera, in his cha in of t i t l e . For example:s teals t h e d u p li c at e c e r t i f i c a t e of t i t l e to 0 s property, forges 0 s

name to it and to a deed transferring the property to X and registers theproperty in h i s own name Lben transfers the property to P, a bona f i d epurchaser, re l inquishes the cer t i f ic a t e of t i t l e and a new ce rt i f ic at e i si s sued to P. on leanring of this forgery attempts to recover the propertyf r o m P. The Torrens System in such a s it ua ti on prote cts P, vhereas underthe recording system 0 wu ld be protected. The reason for this is t h a tt h e c e r t i f i c a t e of t i t l e in t he r eg i s t r a r s o f f i c e m y be r e l i ed on by apurchaser to show the t i t l e to t h e pro perty, a t l e a s t to this extent .(6)

This i l l u s t r a t e s th e major diffe renc e between the recording and the

registrat ion systems in the i r opera t ion i n California. A purchaser w l ln o t be sub j ec t to defects in the intermediate transfers occlnring in thechain o f t i t l e . To this extent he i s protected under the registration system,h e r e no prote ct ion wu ld be afforded under the re cordim system.

B EVENTS SUBSEQUENT K PURCHASE O REGISTERED LAND HICH CAUSE USS OFTIEE PUKCHASERl STIFLE ~.~.~ z d and f o r g e n T

The above paragraph stressed the protectiongranted by the TorrensSystem to a subsequent purchaser. This section w i l l emphasize the drastice f f e c t such a r u l e u ll have on th e owner of re g is te re d property. Forexample, 0 who has purchased Blackacre, los es his c e rt if ic at e of t i t l e tothe property. X f inds i t for ge s 0 s name to a deed and t r ans f e r s t heproperty to P. According to the above discussion P i s given ful l protect ion.0 on the other hand, i s given l i t t l e or no pro tec t ion . His t i t l e has beenl o s t and he has no recourse against P to recover the property. An assurancefund i s s e t u p by the Land Title aw to permit him to recover money damages,b u t as discussed in a former chapter that fund i s presently bankrupt.(7)H i s r i g h t of ac t i on aga in s t X the thief, would be a tech nica l one, sin ce

would probably have departed immediately a f t e r th e s a l e of t he propertyto P.

To this extent the Torrens System has created a hardship f o r ounersof r eg ist ere d property. They must gu rd the i r cer t i f ica tes wi th u tmostc a r e o r run the risk of loss.

Ths same result would occur in m ny types of f rau d cases, where th eowner of registered property would lose his property due to fraudulentac t ions on the part of h i s vendee.


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A purchaser or owner of regis tered property i s , the re fore , sub jec tto a number of i nt er es ts not appearin, : on hi s c e r t i f ic a te and must i na d d i t i o n h i s c e r t i f i c a t e of t i t l e c a r e fu ll y i n o r de r t o ? r o te c t h i s~ i c h t s . , Ibis makes th e ope rat ion of the Torrens Systen i n Ca l i fornia f a rfrom ideal.

I t would seem th a t some of th es e problems might be solved by th e f a c tt h a t t h e o r i g i n a l owner i s in possession and the subsequent purchaser i sno t then a bona f id e purchaser and should be given no prote ctio n. Thec o u r t s h a v e a p p a r e n t l y n o t e x p l o r e d t h i s p o s s i b i l i t y t o an g r e a t extent.

VI =FECT F F A I LT ~ -O REGIS TER INTERESTS -N TORRENS ~ P Z R T YThis sub jec t shou ld be br ie f l y considered before concluding the

dis cu ss ion of Ca lif or ni a' s Land Ti t l e Law.

A s sho rn above, a subsequent p urchaser s g e n e ra l ly n o t s u b j e c t t oi n t e r e s t s i ch a r e u n re g is t er e d. There a r e a few s i tu a t io ns in whicht h i s s n o t h e , a s d is cu ss ed fo rm er ly, b u t f o r t h e moment l e t us omitany cons idera t ion o f those fac to rs .

The following exanple w i l l i l l u s t r a t e t h e e f f e c t of f a i l u r e t or e g i s t e r i n t e r e st s in reg i s te red l and :

0 owner o f l o t A mortgages the property t o M Lot A has beenre gi s t er ed under th e Cal i fo rnia Torrens System. 4 however, f a i l s t o s e et h a t th i s mortgage s proper ly reg i s te red and en te red a s a memorandum i nt h e c e r t i f i c a t e o f t i t l in t h e r e g i s t r a r ' s o f f ic e . l a t e r conveys t h ep r o p e r t y t o P a bona f i d e purch aser w ith no not ic e of th e mortgage whichhad been given to E The Ca l i fo rn ia cour t s have he ld tha t in such as i tua t ion the mor tgage i s val id between the par t ies thereto (namely, 0and N b u t t h a t t cannot be enforced against P, a bona f i d e purchaser. (8)T h i s i s o f c o u rs e, i n k ee pi ng wi th t h e m l e t h a t a purchaser merely

t a k e s s u b j e c t to i n t e r e s t s ap pea rin; on t h e c e r t i f i c a t e o f t i t l e , w it hfew exceptions.

If P were not a bona M.de purcl~asrr - t h a t i s i f he had not paidvalue i n good fai th , and wii.bout 11ot ice of tine mortgage, he would n o tthen be protected under the Cal i fornia decis ions.(9) This i.s a s shownabove, n contracliction of Section 6 o f t h e Land T i t l e Law, whichapparently- would pr o te c t even a subsequent purchas er & not ice . Thec o u r t s h a v e n o t i n d i c a t e d t o what, ex te n t purc txse rs H i l l be chargedwi th no t ice as f ro n possession o r suspicious fa c ts and circumstances whichwould a f fe c t th e i r bona f i de charac te r. A purcha ser sho uls, however, t obe s a f e in ve st ig at e the cha rac ter of tine premises and determine who i s inpossessico.

V I I . CONCLUSION

This concludes the anal ysis of th e s ta t .c to ry a n d c a s e law r e l a t i n g tothe Cal i forn ia T orr ms System. The f i na l chapter which fnllnws summarizest h e a p p a r e n t fl a ws i n t h i s s y st er t. (See Fart. TV Chapter 1.)


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1 See oard f ens io r, Co m~ ss ic ne rs Kur lbur t, 7 Gal App 2 ) 56E;Rutled&e v City of Eureka, l 9 m 0 cases both providei l l u s t r a t i o n s of t h i s o r o v i si o n o f t h e Tor re ns S

Cal Land Registry Law 2

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Transcript of Cal Land Registry Law 2