Insurance Principle on the Land Registration System of England and Iran

As a result of incorrect registration information, if persons who acted on the basis of this information are damaged, according to the general rules, the injured party must claim compensation for that damage by filing a lawsuit then proving the elements of civil liability. Given the difficulty of proving these elements, as well as the possibility of injurious' financial inability, will not guarantee that the injured party will be fully compensated. This result will ultimately be to the detriment of persons who have trusted and acted on the registration system. Therefore, in the legal system of Australia and then, the United Kingdom, a mechanism called Insurance Principle was created. This principle, by guaranteeing the financial value of Title lost as a result of incorrect registration information by the government, prevents the loss of public trust in the registration system and the damage to persons. This research has been written in descriptive, analytical and historical methods, also using authoritative library and electronic sources and it is examined the history of Insurance Principle in Australia and the United Kingdom, under what conditions the economic security of registered land title is guaranteed in the registration system, on what basis was it established and what will be the consequences of its realization. Also, by examining the Iranian legal system, it is observed that the Insurance Principle has not been realized in the Iranian registration system, therefore, it is proposed to the legislature to use this principle to achieve public trust in the registration system.