Torrens System

Means of land title registration used in some states that in effect, provides a government sponsored form of Title Insurance. Under this system, a government official, such as county recorder or county clerk, maintains Torrens System deed records and guarantees clear title when property is transferred. Fees charged for registration and transfer of title are used in part to finance a Torrens insurance fund in each jurisdiction to compensate claimants for damages resulting from errors.

A Title registration system used in some states; the condition of the Title can easily be discovered without resorting to a Title Search.
Example: A property owner in Chicago wishes to register the property under the Torrens System. An application is made with the appropriate court. Following a title examination and Notice to all who wish to make a claim, the court issues a Certificate of Title setting forth the nature of the applicant's title. When the owner sells the property, a new certificate is issued to the buyer. Anyone establishing a claim to the property following registration is compensated from a special fund for any losses suffered.