If the transaction is not registered within the priority period, which statement directly addresses the consequence?

• A. The lawyer will be in breach of duty of care
• B. Buyers are not the legal owners although they hold a beneficial interest
• C. Mortgage does not become a legal charge until registered
• D. If out of the priority period, a third party interest may gain priority

Answer: (D)

The key idea is how registration timing affects who holds priority in a property transaction. The priority period is the time allowed to register the interest so it can take effect over other later interests. If registration doesn’t happen within that window, someone else who later acquires an interest can register and take priority, potentially outranking the earlier unregistered interest. So the direct consequence is that a third party may gain priority. This is why timely registration is crucial; other options describe related concepts but don’t address this immediate, concrete outcome.