Final answer:
The true statement about the BC Torrens system is that in a trust situation, trustees are shown on title as the registered owners of land, while beneficiaries are protected by a caveat registered on title.
Step-by-step explanation:
The BC Torrens system relates to land registration and property ownership. Among the options provided, the true statement is D) In a typical trust situation, trustees are shown on title as the registered owners of an estate or interest in land with no indication of the existence of the trust, and beneficiaries are protected only by a caveat registered on title. One of the key principles of the Torrens system is the indefeasibility of title, which means that once an interest is registered, it is protected against most claims of other parties.
In the context of a trust, this can mean that the legal title is held in the name of the trustee which appears on the register, while the interest of the beneficiaries, who are equitable owners, may be backed up by a caveat, which acts as a warning or formal notice to others that the beneficiaries have an interest in the property. However, the statement A) is incorrect because caveats do not automatically lapse after two months; they only lapse if a prescribed action occurs, such as being withdrawn or court-ordered. Statement B) is incorrect because while registered charges like mortgages are indeed generally indefeasible, they can be defeasible under specific circumstances, such as fraud. Statement C) is misleading; while documents usually need to be in a prescribed format to be registered on the title, enforceability between parties can also rest on common law principles.