§ 427. Compensation from assurance fund. Any person who, without negligence on his part, sustains loss or damage or is deprived of real property, or of any estate, right or interest therein because of the registration of another person as owner of such property, or of any estate, right, or interest therein, through fraud, or in consequence of any error, omission, mistake or misdescription in any certificate of title or in any entry of or memorial in the title book, shall have a cause of action against the county treasurer (in New York city the commissioner of finance) to recover compensation for such loss or damage.