Under the Torrens system, what happens when there is a conflict between a registered interest and an unregistered interest in land?
Correct Answer
B) The registered interest generally takes priority
The fundamental principle of the Torrens system is that registered interests generally take priority over unregistered interests, providing certainty and security to registered proprietors. This is subject to limited exceptions such as fraud or certain statutory interests.
Why This Is the Correct Answer
Indefeasibility means a registered interest generally takes priority over an unregistered one, even if the unregistered interest was created first. Limited exceptions, such as fraud or the statutory exceptions, can change the result.
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