In relation to registration, which statement is true before the transfer is registered?

• A. Buyers have legal ownership immediately
• B. The transfer operates in equity and buyers may hold the beneficial interest
• C. The mortgage is a legal charge immediately
• D. The property is owned by the seller until completion

Answer: (B)

Before a transfer is registered, legal title does not yet pass to the buyer. Equity recognises the buyer’s rights in the property, giving them a beneficial (equitable) interest, while the seller typically holds the legal title on trust for the buyer until registration. This means the buyer has an enforceable interest in the land even though the register hasn’t been updated. The correct idea is that the transfer operates in equity and the buyer may hold the beneficial interest. It isn’t true that the buyer has legal ownership immediately, nor that the mortgage becomes a legal charge instantly, nor that the seller owns the property outright until completion.