The Torrens system is a system of land registration that is used in Australia and some other countries. In Australian English, the Torrens system is sometimes referred to as the "system of title registration" or the "system of land titles".
The Torrens system is a system of registration of title to land. This means that the ownership of land is recorded in a central register. This makes it easier to identify the owner of land and to transfer ownership of land.
The Torrens system is important in securitisation because it provides a secure way to transfer ownership of the underlying assets. In a securitisation, the underlying assets are typically land or mortgages. The Torrens system ensures that the ownership of the underlying assets is clear and that the investors in the securitisation have a valid claim to the cash flows from the assets.
Here are some of the applications of the Torrens system in securitisation:
- To provide security for investors: The Torrens system provides a secure way to transfer ownership of the underlying assets. This gives investors in the securitisation confidence that they have a valid claim to the cash flows from the assets.
- To reduce costs: The Torrens system can reduce the costs of securitisation. This is because it is a more efficient way to transfer ownership of land than the traditional system of deeds.
- To increase liquidity: The Torrens system can increase the liquidity of securitisations. This is because it makes it easier to buy and sell securitisations.
The Torrens system is a valuable tool for securitisation. It provides security for investors, reduces costs, and increases liquidity.
The Torrens system is sometimes referred to as the "system of title registration" or the "system of land titles".