Comment by pdonis

1 day ago

> how is ownership established if there is no single source of truth?

There is: the county clerk in the county where the land is located.

No, the county clerk records aren’t a “single source of truth”. In the US system, it is possible to convince a court the county records are wrong, and order them overridden-which makes them not the single source of truth.

By contrast, in the Torrens system, whatever the government records say are final. If you are the innocent victim of a mistake by the government (or a fraud against it), the government has to compensate you; but you don’t actually get the land back if it has since been sold to an innocent purchaser.

  • > in the Torrens system, whatever the government records say are final

    First, it doesn't seem like that's always the case, based on another post upthread talking about a land ownership case that went to the high court because of an error in the government's records.

    Second, since there is no single government for the entire world, any government trying to implement a Torrens system is still going to face the problem of events happening outside its jurisdiction that its records do not and cannot contain, which affect ownership of property in its jurisdiction. So there cannot be a "single source of truth" in the sense you appear to be using the term, even in the Torrens system.

    • > is still going to face the problem of events happening outside its jurisdiction that its records do not and cannot contain

      Excuse my German ignorance, but my understanding of how it works here is that unless the transfer is notarized, logged and recorded with the local authority, there has not been a legal transfer. So, by that definition of land ownership, no "events outside of its jurisdiction" can take place. Any such agreements become binding only upon their verified registration. A notary is responsible not only for confirming the transfer but also as independent consultant so neither party gets seriously ripped off. (And if they didn't, they would be in serious liability trouble.)

      The "share of the database" is managed and owned by the local government, but its records are available all across Germany for authorities to look up. The vector database of lots is public, and there are procedures to request access to ownership documents for various purposes. The procedure is that when you want to buy a certain property, the owner confirms that you have permission to get the official record directly from the land registry, which then become the basis for any serious negotiations as what is recorded there is in fact the single source of truth.

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    • > First, it doesn't seem like that's always the case, based on another post upthread talking about a land ownership case that went to the high court because of an error in the government's records.

      I don’t know what High Court case they are talking about-they didn’t give a citation just a vague recollection-they might be remembering wrong.

      But the assumption in the Torrens system is the government database is correct. There are rare exceptions-e.g. the so-called “paramount interests”-but they are narrow and very much exceptional. By contrast, in the US system, a court is totally open to entertaining the argument the county title records are incorrect, in many states there is no presumption against such an argument, and you aren’t required to convince the court some narrowly drawn exception applies before it will consider the argument. (Actually Australia still has something like the “US system” too-we call it “old title”-but old title is extremely rare. Anyone trying to sell an old title lot is going to convert it to Torrens before selling it. I don’t think you can legally sell it until you do so. So in practice the only old title lots left are those which haven’t changed ownership-other than by inheritance-in many decades.)

      > Second, since there is no single government for the entire world, any government trying to implement a Torrens system is still going to face the problem of events happening outside its jurisdiction that its records do not and cannot contain, which affect ownership of property in its jurisdiction.

      That’s not how it works. Overseas contracts, court judgements, etc - if you don’t lodge them with the land title registry, they don’t legally exist as far as land titles go.

      2 replies →

    • In the Torrens system, if you do not register the transfer of property with the government, then the transfer hasn't happened. So whatever else happens in the rest of the world doesn't matter (at least, unless the land itself is annexed by another government).

      (And, from similar cases in the UK which has this system, if the land registry fucks up the transfer is still final and this has been upheld by the court, the government may just be liable for damages)

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  • FWIW even in the US system the courts usually won't order someone off land they are living on or using even if this were the case. At worst they would order compensation be paid - which is what title insurance actually covers.

    Many states have a statute of limitations anyway. If you live on the land and pay the property taxes for N years everything else becomes irrelevant. Either the title was transferred to you or you squatted on abandoned land for N years: in both cases it becomes yours.

  • It's also entirely possible for a judge to just change the records because they don't like them. It's pretty common in Texas to see deed restrictions removed if the local government doesn't want them on there for example.

But at least in some places in the US that's actually just a log of some kinds of transactions (sales and mortgages): you don't have a normalized field in a database somewhere that spits out "this person owns this spot" instead you have to build up from each individual transaction- plus there are transactions that don't take place on the log, e.g. deaths and inheritance or marriage/divorce that could take place outside the purview of the county clerk.

e.g. a married couple buys a house, then one of them dies, and the will is recorded in a different state and leaves their property to their kids rather than the spouse, that sort of update would not be recorded in the county clerk's office in my state.

  • > at least in some places in the US that's actually just a log of some kinds of transactions

    That's true--but as I pointed out just now in response to another post, since there is no single government having jurisdiction over the entire world, there is always the possibility of events happening outside a given jurisdiction that affect the ownership of property in that jurisdiction. No system of records in a jurisdiction can completely prevent that.