Which statement is false about the indefeasibility principle?

• A. It guarantees only title, not charges
• B. It applies to good faith purchasers
• C. It guarantees the owner's name on title
• D. It guarantees the existence of encumbrances against the title

Answer: (D)

Indefeasibility of title means that once a title is registered, the owner’s rights on that title are secure and cannot be defeated by most later claims. The register is relied upon as conclusive evidence of ownership, which is what gives a buyer for value in good faith strong protection: they take title free from most previously existing defects or claims that aren’t reflected in the register.

This principle also supports the idea that the owner’s name on the title is guaranteed; the person named in the register is recognized as the owner, subject to any statutory exceptions or fraudulent actions that might allow a challenge.

It does not mean there are no encumbrances on the property. Encumbrances—like mortgages, easements, or liens—can exist and be enforceable against the title, and they are matters recorded on the register. The indefeasibility principle secures the owner’s title itself, not the absence of encumbrances.

Therefore, the statement that the indefeasibility principle guarantees the existence of encumbrances against the title is false.