Under Ontario's Registry Act, an owner sells a lot to Party A, who does not register the deed. Later the owner sells the same lot to Party B, who pays value, has no actual notice of A's deed, and registers first. Who has priority?
Correct Answer
C) Party B, because priority of registration prevails absent actual notice
Registry Act s. 70(1) makes an unregistered deed void against a later purchaser for value without actual notice who registers first, and s. 71 says priority of registration prevails unless the person registering first had actual notice of the prior instrument. Party B paid value, had no actual notice and registered while A's deed sat unregistered, so B has priority. A's remedy is against the owner who sold twice.
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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?
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Under the Torrens system, a property developer fraudulently obtains title to land by forging documents and then sells it to three different innocent purchasers in quick succession before the fraud is discovered. How does the system resolve competing claims between the innocent purchasers?