Pavla is the victim of mortgage fraud in connection with a piece of land called Blackacre. Blackacre is located in a jurisdiction that uses a land titles system. Which of the following statements is TRUE?
A) Lawrence v Wright created the new concept of deferred indefeasibility, which delays the creation of an indefeasible title until an interest is registered by a person who did not deal with the rogue.
B) Pavla is entitled to compensation from the assurance fund as soon as she proves that she is the victim of fraud.
C) The courts usually respond to mortgage fraud by ordering the victim and the mortgagee to hold the affected property as joint tenants.
D) Fraud is a general exception to the traditional doctrine of indefeasibility.
E) Pavla cannot possibly lose title to Blackacre unless she carelessly allowed the fraud to occur.
Correct Answer:
Verified
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