Under Queensland law, a buyer holds an unregistered equitable interest under a contract but has not protected it with a caveat. Someone else then registers a competing interest. How is priority generally resolved?
Correct Answer
D) Registration wins, and the registered holder prevails unless it was party to fraud
Under the Land Title Act 1994 (Qld), a registered interest takes priority over an unregistered interest, and the registered holder is not affected merely by having notice of the unregistered interest. The main exception is fraud by the registered holder. A buyer protects an unregistered interest by lodging a caveat, which stops the inconsistent dealing from being registered in the first place.
Why This Is the Correct Answer
In Queensland's Torrens system, registration determines priority. A registered interest defeats an earlier unregistered interest unless the registered holder was party to fraud; knowing about the unregistered interest is not enough on its own.
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