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Originally Posted by Codger As to people taking out mortgages to "play" the market, try and get your head around just how easy it is to get multiple mortgages on the same property with none of the lenders being able to reliably find out about the other mortgages or in some places really nail down who actually has title to the property. . |
Not sure what type of "registry" system China uses, but in any Commonwealth Country this practice would be impossible.
British Columbia uses a Torrens System, modeled after the
ship registry system devised by Robert Torrens. In the Torrens System, a purchaser does not need to search back through each previous transfer. Instead, the purchaser can rely on whatever name shows on the Land Title Registry. If the Land Title Registry shows a person as the owner or a Financial institution holding a lean against the property such as a Mortgage, the purchaser can buy the property from that owner without worrying about how that person became the owner, or being worried about hidden leans.
The Torrens Land Title Registration System provides a sure method for determining and assuring title to land. Under a Torrens System, security of title is based on the four principles of indefeasibility, registration, abolition of notice and assurance.
Since China has been posting double digit market gains for the last 4-5 years a correction is only expected, what was unexpected was the world's reaction to it. It just shows how everyone is on edge.
The one that most people in North America are watching and the Bulls/Bears worried about is the unprecedented annual double digit real estate market surge, and how it's predicted correction or bubble burst will affect the economy as a whole.