Before registration, what is the buyers' interest status?

• A. They have legal ownership
• B. They have no interest
• C. They have beneficial interest but not legal ownership
• D. They hold a mortgage

Answer: (C)

The key idea is that legal ownership comes from the legal title registered at the Land Registry, which happens on completion and registration. Before that, the buyer doesn’t hold the legal title yet, but they do have an equitable (beneficial) interest in the property arising from the contract of sale. Practically, the seller holds the legal title on trust for the buyer until completion and registration, so the buyer is the beneficial owner and can enforce their rights in equity, even though they aren’t the legal owner yet. Once the transfer is registered, legal ownership passes to the buyer. So the correct understanding is that they have a beneficial (equitable) interest but not legal ownership.