Earlier this month, Massachusetts Governor Maura Healy signed into law an amendment to the Registered Land Act that will allow owners of registered land to withdraw from the cumbersome Land Registration System.
In Massachusetts, there are two title systems for land: Registered Land and Recorded Land. Recorded Land documents are filed and maintained by the local Registry of Deeds. Registered Land, however, is subject to a different title system. Under this system, the Massachusetts Land Court certifies title to land after an exhaustive title search. Once the Land Court issues that certification, title is guaranteed. For further discussion of the differences between Recorded and Registered Land, see this blog post by Andrea Knowles.
Ownership of Registered Land has its advantages, such as protection against claims of adverse possession. There are downsides, however, such as increased delays and increased expense when transacting in Registered Land. Since the Massachusetts Land Registration Act was enacted in 1898, the world has changed in ways that render some of the advantages of Registered Land less important. For example, title insurance is now widely available, protecting property owners from adverse claims to real estate. Yet, until now, owners of Registered Land were, with limited exception, stuck with the more formal, complex system.
On August 6, 2024, Governor Healy signed the Affordable Homes Act. As part of that Act, the Registered Land Act is amended to allow property owners to withdraw voluntarily from the Land Registration System by filing a “complaint for voluntary withdrawal” with the Land Court, along with documentation sufficient to show their ownership of the property. Thus, owners of Registered Land may choose to withdraw or to remain within the Registered Land System, according to their needs.
The new law goes into effect in February of 2025.