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Under Ontario's Registry system, a purchaser discovers an unregistered deed that predates their registered deed. What is the likely outcome?

Correct Answer

B) The earlier unregistered deed may take priority

Under Ontario's Registry Act, an unregistered instrument is void against a later purchaser for valuable consideration without actual notice who registers first (s. 70(1)), and priority of registration prevails unless the later purchaser had actual notice of the earlier instrument before registering (s. 71). So the earlier unregistered deed may take priority, but only if the later purchaser had actual notice of it; constructive notice is not enough.

Answer Options
A
The registered deed always takes priority, regardless of date
B
The earlier unregistered deed may take priority
C
The unregistered deed is invalid and has no effect
D
Both parties become joint tenants of the property

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Key Terms

Registry Actpriorityactual noticeunregistered deeds. 71
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