The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-29
TITLE REGISTRATION
a Concise ana READABLE summary
the TOrrens System,

To the Editor of The Journal:
AS land mas increased in value there has
arisen the need of some means by which
titles may be made more secure. This need
has two causes: a. in order that the pur-
chaser may be secured against ejectment by
reason OF defects in his grantor's title; and
CD to secure priority among creditors, and
TO make real estate available as collateral
security. To meet this need there has been
devised the system of registration in the
public records of all the documentary evil /
dences Of title, and of liens and ncum-
ORANGES on land. But there are many faults
in our present system and there have been
many attempts to effectuate a change. And
there comes from Australia the home of
many innovations. the Torrens system OF
registration, which registers not the evidence
OF the title but the title itself and moreover
guarantees this title when it shall have
been registered and to support this guar
anty with an insurance fund which shall in
demnify any rightful owner of land who may
have been deprived by fraud or error of his
rights.
This idea is not altogether new one. In
modthed form it has been used in Europe
for centuries. Prussia has had a somewhat
similar system for one hundred and fifty
years. But the system as we now know it
was originated by Sir William Torrens of the
English admiralty, and was applied by him
in Australia.
Torrens knew of the German registration
but his reform was Immediately suggested
by his knowledge of the ready process Of
registering ownership in vessels. The bill
drafted by him was adopted by the province
OF South Australia in 1858; after several years
OF successful operation in that colony the
system was extended to Queensland and in
1874 was in use throughout Australia ana
New Zealand. England Introduced the nea-
sure: in 1875, but without some Of the most
valuable features, SO that very few estates
were brought within its operation and evea
Sir William Torrens failed to register his
English lands. In 1897 second act cor
rected the deficiencies and the operation Of
the system since that date has been most
gratifying 20 its English promoters. British
Columbia passed Torrens law in 1870 and
nearly all the Canadian provinces have since
introduced it, 81. 10 -.
The many weaknesses of our own system
led some of our states to investigate the Tor
rens law, and in 1895 Illinois passed law
embracing the salient features Of the Aus
tralian scheme; Ohio followed in 1886, Massa-
chuEetts in 1898 and Minnesota\ir 1901. The
Illinois law was overthrown by their supreme
court but IN 1897 an amended law was
passed which has been declared constitu-
tional by the supreme court of that state in
q late case. 49,.
Ohio's law has been declared unconstitu-
The Massachusetts, law has been held good
| in the late case of Tyler Judges of Regis
tration. " w.
An Anticipated System. .
The MINNESOTA law is now in the balance
and the outcome will be watched with con-
siderable interest. If our courts should de-
clare the measure unconstitutional it is to be
hoped that new. bill will be passed with the
Objectionable features eliminated. Our pres
C1ycfo 10 Iroo op
weight. In Chicago, since the great fire of
1871, there have been accumulated over 5000
volumes of records in which. several million
instruments are recorded. Governor Russell
of Massachusetts, in his message to the legis-
lature of that state, points to even greater
accumulation in the Boston registry. In New
York city not only have the induces been
indeXed, but there has been ready sale for
a key to these supplementary indices; only
q few firms in the city, making speciality Of
abstracting, are competent to search out
titles. This sort of thing makes the burden
nearly uncomfortable. -.r.. -
Under system imperfect and in
secure land cannot be sold or used as secur-
ity without vexatious delay and great trouble.
A business man caught in sudden crisis
may be forced into bankruptcy because of the
fact that ne cannot in a reasonable time
realize his land. Land cannot be quick
and available asset in business until titles
| are quickly and easily discernble The cost
of inquring into a title is 70 incoEsderable
iten1 1t is saids that in Chicago the average
| cost of an abstract is $96S and the average
! fee to lawyer to examine the title is SIS.
| The title insurance companies charge about
| per cent of the purchase price to insure a
| title and the fact that they dc such an
enormous business is commentary that
should be needed by our legislatures
| Profiting by the example set by Massachu-
sets and Illinois, and avoiding the mistakes
| made in Ohio. there seems to be no reason
why Minnesota should not secure the advan-
tages Of the Torrens system. The great diff
! Guilty Is to get a title that is not defeasibe
| and at the same time be sure that a rightful
! owner is not deprived of possession through
! lack of. notice. But even on this score the
| danger is but slight Occasional injustice
must be done SO long as laws are admins
tered through human agency. Every man
will make mistakes, but that is inevitable.
| But mistakes occur now and the vast amount
! Of title litigation shows that our present Sys-
| tenn is nowhere adequate to the demands of
! modern life. Under the Torrens system mis-
! takes cannot arise as frequently as they do
! at present. In Australia there have been hun
dreds of thousands of transfers and but COM
paratively few cases of recourse to the as
| surance fund. i And in this connection it is
| we'll to remember that a man could hardly
| be registered out of his title unless he were
guilty of ::sleeping on his rights and even
| in such a case he could have recourse to the
| money indemnity that he could collect from
the assurance fund made for such cases. Fur
| thermore, it is a maxim of the law that
courts are to aid. the vigilant, and it is of
! doubtful public policy whether any man who
negects to take care of himself should. be
! aided by any positive law. 5'
In Minnesota. p..,
!
the difficulties met with in Ohio and Illinois
lin these two states constitutional provisions
Ehampered the legislature in drafting the laws
which the courts, turned down. Directors tc
the Torrens system claim that by it's opera
l-tons a person may lose title to his land with
out educ process of law Both Illinois anG
Massachusetts, have met this Tdfficulty by TAX
ing away from the registrar all judicial func.
tons and providing for a civil trial to try ad-
lyerse claims as at present
The entire Minnesota law upon the subject
is found in chapter 237 of the laws OF 1901
The act applies only to counties having
population of over $4,000 Inhabitants and is ii
no way compulsory. The whole act is direct
ory rather than mandatory The provisions
are somewhat Similar to those in Massachu
Sets In general, any owner of real estate
may apply in writing to the, district court Of
the county in which the land is situated tt
! have the title registered. The judges of the
district court appoint attorneys in their re
spective counties whose salary is fixed by
the county commissioners. The application
r for registration is filed in the Office of thu
clerk Of The court to whom the application i:
made The examiners then examine the title
I as best they are able. A judicial hearing i:
appointed to question the;title Any interest
ed party may appear and contest. If, afte,
hearing, the court finds that the applican
has title proper for registering, "a decree t.