What is the Insurance Principle?

The Insurance Principle means that an insurance fund is in place to compensate anyone who suffers as a result of a mistake being made concerning the validity or accuracy of a title. The idea behind the Torrens system is that the registry must guarantee the accuracy of every title to land. If, as a result of human error, there is a mistake about the title to a piece of land and someone suffers a loss as a result, they will be compensated by the fund.

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