[mindslight]

> any transfer of property in the county has to be recorded on a deed that is submitted to the county clerk and kept on file by them. Otherwise it hasn't happened.

No, the point is that this is actually not true. The transfer has happened as soon as the deed has been executed. There are many reasons you generally want to record the deed in a timely fashion, but doing so is not strictly necessary.

[pdonis]

> the point is that this is actually not true

It is in Florida, which is where I live. Florida Statutes section 695.01:

"No conveyance, transfer, or mortgage of real property, or of any interest therein, nor any lease for a term of 1 year or longer, shall be good and effectual in law or equity against creditors or subsequent purchasers for a valuable consideration and without notice, unless the same be recorded according to law"

I can't say whether every US state has similar law in place, but I suspect most of them do, since both the State and the county clerks get revenue from the recording fees.

[mindslight]

I would characterize that as a patching of some of the problems that arise from the system, not a changing of the system's underlying semantics.

By my lay reading of that, it doesn't even actually necessitate recording the deed sooner for it to have those effects - rather it just means that the deed needs to have been recorded some time before you get to court.

[pdonis]

"Recorded according to law" refers to separate Florida statutes that specify how that's done--with the county clerk in the county where the property is located.

> it just means that the deed needs to have been recorded some time before you get to court.

No, before whatever event happens that might trigger a lawsuit.

For example (hypothetical as far as I know): say I purchase a property from a fraudulent seller. They promise me they'll record the deed after it's signed and notarized by both of us, but they never do so. (Of course I'd be stupid to do things this way, but maybe I'm a real cheapskate and want to save on title company fees.) Then they sell it to someone else. In order for my ownership rights to be protected by Florida law, I would have had to see that the deed was not recorded, and do it myself (and pay the recording fee), before the date of the second sale. Before the date of the court hearing to challenge the second sale would not be sufficient.

It's true that, in a typical closing in Florida (and in every other state where I've bought real property), the closing takes place at the title company's office, their notary notarizes all the documents and gives me copies before I leave, and I get the key to the house at the end of that. I don't have to wait until the deed is recorded with the county to take possession.

My question would be, how does a closing work in jurisdictions that have Torrens title? Does the closing have to take place at the land registry, so they can confirm that everything is checked and valid and recorded before I get the key to the house?

[mindslight]

> before whatever event happens that might trigger a lawsuit

I'll accept that interpretation. But that's still just a patch over the underlying semantics trying to eliminate a lot of thorny cases, not a full change in semantics.

For example, let's say 12/31 is a Sunday. The seller wishes to sell the property this year for tax purposes. The seller executes the purchase agreement and the deed on 12/31, and then only records the deed on 1/2 (when the registry reopens). For purpose of taxes, that is still treated as a sale in the earlier year, right?

> My question would be, how does a closing work in jurisdictions that have Torrens title? Does the closing have to take place at the land registry, so they can confirm that everything is checked and valid and recorded before I get the key to the house?

I have no idea. It seems like the main difference with Torrens title is that when the deed is accepted by the registry then you know it is authoritative. So a closing at an attorney's office with delayed recording has the same ambiguity under both systems. The difference would be that when the deed is confirmed recorded under Torrens, that ambiguity has been fully resolved. Whereas under non-Torrens that ambiguity hangs around indefinitely, insured against by title insurance, and eventually [mostly] extinguished by adverse possession.

[pdonis]

> For purpose of taxes, that is still treated as a sale in the earlier year, right?

To the best of my knowledge, yes, the date of closing, which is the date on which the deed is executed, is the date of sale for tax purposes. Note, however, that at least in the US, the IRS doesn't check what you claim the date of sale is unless you are audited, and I never have been. What would happen in an audit under your hypothetical, I can't say.

> a closing at an attorney's office with delayed recording has the same ambiguity under both systems.

Yes, that's why I asked if such a closing is even allowed under a Torrens system--it seems like it would defeat a key purpose of the system, which is to make sure that the land registry's records always are the "single source of truth" for who owns what.

[mindslight]

I've actually personally dealt with a state's tax authority for a situation where the transfer date was significant, and it was never questioned.

> which is to make sure that the land registry's records always are the "single source of truth" for who owns what.

I think you're coming at this from a tech perspective of fully authoritative digital databases a little too much. Look at the ambiguity that remains after a non-Torrens transfer, and after a Torrens transfer. Eliminating that is the main point of Torrens title. It still can't solve the entire problem and be a "single source of truth" the way we see things in the tech world.

That Florida statute would seem to eliminate a good chunk of that ambiguity as well, but not all.