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REAL PROPERTY (TORRENS ASSURANCE FUND)
AMENDMENT BILL 1992
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The Real Property Act 1900 confers certain rights of action for the recovery of
compensation on persons who suffer loss as a result of the operation of the Act (such as
when a person loses ownership of land as a result of the registration of a fraudulent
dealing).
In some cases the right of recovery is against the Registrar-General as nominal
defendant (such as when the loss is due to the incorrect creation of a folio of the
Register or when the person who would otherwise be responsible has absconded).
Successful claims against the Registrar-General as nominal defendant are currently paid
out of the Consolidated Fund.
The object of this Bill is to amend the Act to establish a "Torrens Assurance Fund"
from which all payments of compensation under the Act will in future be made. The
Fund is to be financed by a levy on all dealings, caveats and withdrawals of caveats
lodged under the Act.
The Bill also empowers the Registrar-General to settle claims for
without the need for litigation. (At present, claims can be paid only if a court has given
judgment for the claimant.) However, the Registrar-General will not be able to settle a
claim over $100,000 (or such other amount as the regulations may provide) without the
approval of the Minister.
Consequential amendments are also made to reflect the fact that claims will no longer
be paid directly from the Consolidated Fund and transitional provisions are inserted.
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides for the commencement of the proposed Act.
Clause 3 gives effect to the Schedule of amendments to the Real Property Act 1900.
Schedule 1 contains the amendments described above.