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.
Why This Is the Correct Answer
This answer is correct because the earlier unregistered deed can prevail in some circumstances, chiefly where the later purchaser had actual notice of it before registering (Registry Act ss. 70(1) and 71). The word 'may' properly reflects that the outcome depends on notice.
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Land has been in Ontario's Land Titles system for 40 years. A neighbour has openly used a path across it for the last 25 years without any registered easement. What is the effect under the Land Titles Act?
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Under the Registry system, a purchaser discovers an unregistered mortgage that predates their registered deed. The mortgage was properly executed but never registered. What is the legal effect?