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

Q: What is the correct answer to: Under the Registry system, a purchaser discovers an unregistered deed that predates their registered deed. What is the likely outcome?

The correct answer is The earlier unregistered deed may take priority over the later registered deed. Option C is correct because the Registry system follows the principle that registration provides notice but doesn't guarantee title validity. An earlier unregistered deed may take priority over a later registered deed if the subsequent purchaser had actual or constructive notice of the prior interest. The fundamental rule 'nemo dat quod non habet' (you cannot give what you do not have) applies - if the grantor's title was already compromised by the earlier deed, they couldn't convey clear title to the subsequent purchaser, regardless of registration.

Q: What background knowledge is needed for this Real Property Law question?

Canada operates two main land registration systems: Registry and Land Titles (Torrens). The Registry system records documents chronologically but doesn't guarantee title validity - it provides constructive notice of registered interests but doesn't cure title defects. The Land Titles system provides government-guaranteed indefeasible title upon registration. Under the Registry system, the principle 'nemo dat quod non habet' applies, meaning you cannot convey better title than you possess. Priority disputes are resolved through notice doctrine and chain of title analysis, making thorough title searches essential for purchaser protection.

Q: What is a good way to remember the answer to this Real Property Law question?

Remember 'NOTICE' - in the Registry system, registration gives Notice Only, Title Is Checked Elsewhere. Think of it like posting a notice on a bulletin board - everyone can see it, but that doesn't make the notice true or guarantee its validity. The earlier deed is like having the 'real' appointment time, even if someone else posted their appointment notice on the board later. When you see Registry system questions, think 'NOTICE' - registration provides notice but doesn't guarantee title. Ask yourself: did the later purchaser have notice of the earlier interest? If yes, the earlier deed likely takes priority regardless of registration timing.

Q: What exam tip applies to this Real Property Law question?

For Registry system questions, remember that registration equals notice, not guaranteed title. Look for keywords about 'notice,' 'knowledge,' or 'awareness' of prior interests. Earlier unregistered deeds can defeat later registered ones if proper notice existed.

Q: How does this Real Property Law concept apply in real world practice?

A developer purchases property and registers the deed, planning a subdivision. During construction, a family emerges claiming their grandfather sold the property to them 20 years ago but never registered the deed. They have the original deed and can prove the grandfather owned the property at the time. If the developer's lawyer failed to discover this prior interest during the title search, and evidence suggests the developer should have known about the family's claim, the earlier unregistered deed could take priority, potentially invalidating the developer's registered title and creating significant financial liability.

Question

Real Property LawLand Registration SystemsMEDIUM

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

Answer Options

A

The registered deed always takes priority

B

The unregistered deed is invalid and has no effect

C

The earlier unregistered deed may take priority over the later registered deed

D

Both parties become joint tenants of the property