In summary, what is the main risk if registration is not completed within the OS1 priority period?

• A. The sale automatically completes
• B. The lender loses all rights to the mortgage
• C. Third party interests may gain priority
• D. Third party interests may gain priority and the lawyer may be liable for losses

Answer: (D)

The main idea is that land interests must be registered in a timely way to establish seniority on the title. The OS1 priority period gives the lender a window in which their mortgage can secure priority over later entries. If registration is not completed within that window, other third parties can register interests first, so they may take priority over the lender’s charge. This undermines the security the lender relies on and can leave the client exposed to losses. Additionally, the solicitor or conveyancer who failed to ensure timely registration may be exposed to professional liability for negligence or breach of duties, potentially resulting in claims for losses. The risk is not that a sale automatically completes or that the lender loses all rights in isolation, but that third parties may gain priority and the lawyer may be liable for resulting losses.