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In an Ontario Registry system area, a buyer pays value for a lot and registers the deed, with no actual notice of an easement granted earlier by a written instrument that was never registered. What is the buyer's position?

Correct Answer

D) The unregistered easement grant is void against the buyer

Registry Act s. 70(1) makes an unregistered instrument affecting land void against a later purchaser for valuable consideration without actual notice, unless it was registered before the purchaser's deed. This buyer paid value, registered, and had no actual notice, so the earlier easement grant does not bind them. Had the buyer known of the easement before registering, s. 71 would give the easement holder priority.

Answer Options
A
The buyer takes subject to the easement despite the lack of registration
B
The province compensates the buyer for any loss the easement causes
C
The easement binds the buyer for 30 days after closing, then lapses
D
The unregistered easement grant is void against the buyer

Why This Is the Correct Answer

The easement grant is void against the buyer because Registry Act s. 70(1) protects a subsequent purchaser for value without actual notice who registers first. The easement holder's failure to register the instrument costs them priority over this buyer.

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Key Terms

Registry Actunregistered instrumentactual noticepriority of registrationeasement
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