Possessory title. When a possessory title only is required, the applicant may be registered as the owner of the fee simple on giving such evidence of actual bona fide possession and of title, and serving such notices, if any, as may from time to time be ordered by the court. The registration of any person as first registered owner of land with a possessory title only shall not affect or prejudice the enforcement of any estate, right, or interest adverse to or in derogation of the title of the first registered owner, and subsisting or capable of arising at the time of the registration of the owner; but, save as aforesaid, shall have the same effect as registration of a person with an absolute title.

Qualified title. When an absolute title has been applied for, and on examination of title it appears to the court that the title can be established only for a limited period or subject to certain reservations, or upon application claiming such a qualified title, the court, on the application of the party applying to be registered, may except from the effects of registration, by an order included in the court’s decree, any estate, right, or interest arising before a specified date; or arising under a specified instrument; or otherwise particularly described in the decree.

A title registered subject to an excepted estate, right, or interest, shall be called a qualified title. The registration of a person as first registered owner of land with a qualified title shall have the same effect as the registration of a person with an absolute title, save that registration with a qualified title shall not affect or prejudice the enforcement of any estate, right, or interest appearing by the register to be excepted.