Article 2.2.11 Compensation and Limitation of Liability

(a) Purpose and Scope:

This Article establishes a framework for liability, compensation, and error correction mechanisms related to the operation of the ICT Land Registry and associated functions performed by the Land Registrar. It aims to provide legal certainty, procedural fairness, and institutional credibility while appropriately limiting exposure to frivolous or excessive claims.

(b) Limited Institutional Liability:

(i) Neither the Operator nor any appointed Land Registrar or commission of the Operator shall be liable in tort, contract, or otherwise for loss or damage suffered by any person arising solely from:

(ii) An omission, mistake, delay, or inaccuracy in the ICT Land Registry;

(iii) The registration of instruments that are later discovered to be forged, fraudulent, or invalid, except where such registration occurred due to proven intentional misconduct, collusion, or wilful breach of duty by the Operator or Land Registrar;

(iv) Procedural or technical defects in the registration process that do not materially affect legal entitlement or priority.

(v) This exclusion of liability applies notwithstanding that a person may have relied upon the ICT Land Registry in good faith, and shall not be construed as creating a duty of care to individual registrants or third parties, save as provided under the Compensation Fund framework in sub-paragraph (c) or where liability is expressly preserved by this ICT Code.

(vi) Operator liability shall not be excluded in cases of:

(vii) Proven intentional misconduct, collusion, or wilful breach of duty; or

(viii) Failure to act in accordance with a lawful ICT Court order.

(ix) The Operator may designate, by supplemental regulation, categories of institutional error or procedural failure that are eligible for ex gratia or capped compensation under Article 2.2.11(c).

(c) Compensation Fund and Insurance Mechanisms:

(i) The Operator may establish a dedicated “Land Registry Compensation Fund”, which may be supplemented by insurance, surety, or reinsurance arrangements, to provide relief in cases of proven loss or manifest injustice.

(ii) Claims against the Land Registry Compensation Fund shall be subject to procedural rules issued by the ICT Court, including eligibility thresholds, evidentiary requirements, and time limits.

(iii) The Compensation Fund may be financed through:

(iv) Land Registry registration fees and levies;

(v) Operator contributions or surpluses from registry operations;

(vi) Third-party insurance recoveries.

(vii) The Operator may, in their sole discretion, approve ex gratia payments from the Compensation Fund in cases where:

(viii) The legal threshold for compensation is not met; but

(ix) The claimant has suffered disproportionate hardship or injustice; and

(x) Such payment would not unduly burden Operator finances or regulatory integrity.

Ex gratia relief shall not constitute an admission of liability and shall be subject to procedural safeguards issued by the Operator.

(d) Scope of Compensable Loss:

(i) Compensation shall be available only where a claimant suffers demonstrable, direct financial loss due to:

(ii) Deprivation of title or interest resulting from official error or fraud;

(iii) Inability to recover land wrongfully transferred or encumbered due to reliance on the register; and/or

(iv) ICT Court-ordered rectification of the Land Register due to manifest injustice not attributable to the claimant.

(v) Losses arising from delay, lost commercial opportunity, or speculative expectations are not compensable.

(vi) Where contributory negligence is established, compensation shall be reduced accordingly or denied.

(e) Claim Procedure and Determination:

(i) Claims shall be lodged with the Land Registrar within the prescribed period and in accordance with regulations issued by the Operator.

(ii) Claims unable to be settled by agreement shall be determined by ICT Court.

(f) Regulatory Authority and Transparency:

(i) The Operator may issue supplemental regulations governing the establishment, funding, and administration of the compensation fund and associated insurance mechanisms.

(ii) Annual reports on the fund’s operations, financial position, and claim outcomes shall be published to ensure transparency and accountability.