§ 406. Transfers of registered property. A registered owner of real
property, in order to transfer his whole estate or interest therein, or
any part or parcel thereof, or any undivided interest therein, shall
execute to the intended transferee a deed or instrument of conveyance in
any form authorized by law. Such deed or instrument of conveyance shall
have recited therein a statement or reference setting forth the source
of the title of the grantor or the circumstances under which the title
was acquired by him. Upon filing such deed or other instrument in the
registrar's office and surrendering to the registrar the duplicate
certificate of title, he shall then make out and register as herein
provided a new certificate and also an owner's duplicate certificate of
title certifying the title to the estate or interest in the property
conveyed to the transferee and shall enter upon the original and
duplicate certificate the date of the transfer, the name of the
transferee and the number of the new certificate, and shall stamp across
the original and surrendered duplicate certificates the word
"cancelled." Title to such property shall not pass by such transfer
until the transfer is registered as prescribed by this section.