Which principle may deprive innocent parties of property rights under the Torrens System?

Under the Torrens System, the principle of indefeasibility of title is crucial because it provides that once a title to property is registered, it is considered conclusive proof of ownership. This means that the rights of the registered owner are protected, and no subsequent claim or interest can defeat that ownership unless there are extraordinary circumstances, such as fraud.

This principle upholds the certainty and reliability of property ownership, which is a foundational aspect of the Torrens System. However, it can also result in innocent parties being deprived of property rights because it prioritizes the registered owner's rights over others who may have had unregistered claims or rights to the property. As a result, even if an innocent party had a legitimate interest in the property, their claim could be rendered ineffective when a title is registered in someone else's name, thereby illustrating how the principle operates within the system. The importance of this principle lies in its role in ensuring security and clarity in property transactions, albeit sometimes at the expense of unrecognized rights.