RES exam question on Land Law: A fraudster forges a transfer of Mdm Koh's house to himself and is registered as…
A fraudster forges a transfer of Mdm Koh's house to himself and is registered as proprietor on 3 March 2026. On 20 April 2026 he sells to Mr Teo, who pays market value, knows nothing of the fraud, and is registered on 6 May 2026. Which is/are correct? (i) While the fraudster was still the registered proprietor, the court could have ordered the register rectified against him, the fraud exception reaching a proprietor who is party to the fraud. (ii) Once the innocent purchaser is registered, his estate is paramount, and the register cannot be rectified against him on the strength of the earlier forgery alone. (iii) The forged transfer was void, so nothing passed down the chain and Mdm Koh may recover the house from the purchaser. (iv) If she cannot recover her loss from the fraudster, the assurance fund under the Land Titles Act is the route by which the system answers for it.
- A(i), (ii) and (iv) only
- B(ii), (iii) and (iv) only
- C(i) and (iii) only
- D(i), (ii), (iii) and (iv)
Show answer & explanation
Answer
A. (i), (ii) and (iv) only
Explanation
Under title by registration the estate of the registered proprietor is paramount, subject to the exceptions in section 46 of the Land Titles Act, of which fraud is one; the fraud that defeats a proprietor is fraud by him or brought home to him, not fraud further back in the chain. So the window for attacking the register closes when the innocent purchaser for value is registered: while the fraudster was on the register the court could have ordered rectification under section 160, but that power is not exercised so as to disturb a purchaser in good faith for value. The deeds-system instinct, that a void instrument passes nothing down the chain, is the trap, and it is the wrong system. What remains for the dispossessed owner is a claim against the fraudster and, failing that, the assurance fund in Part 17 of the Act. Takeaway: timing decides who bears a forgery.
Study the concept behind this question: Restrictions on Capacity to Hold Land — Minors, Companies, Societies & the Mental Capacity Act
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