OVERVIEW OF THE COMPENSATION SCHEME UNDER THE TORRENS SYSTEM: AN ANALYSIS FOR ADOPTION IN PENINSULAR MALAYSIA
Abstract
One of the common features of the Torrens land registration system is that it provides compensation scheme to indemnify all persons who are deprived of their land or suffered loss from the malfunction of the system. Nevertheless, the compensation scheme has been absence from the Malaysian Torrens system since it’s inception. The question is whether non-adoption of the compensation scheme in the land registration system would render the system defect and detrimental to the user of the system? If so, then there is an urgent need to review the lacuna in the existing land registration system. This paper examines the rationale behind the compensation scheme and the necessity for such scheme to be adopted as a backstop to the state guaranteed title. This paper suggests that a statutory compensation scheme is to be established in the Torrens system in Peninsular Malaysia if the system is to remain effective and relevant in the 21st century.
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