Registration and OS priority: What is a possible consequence if you fail to apply for registration within the priority period?

• A. The transfer completes in equity automatically
• B. Third party interests may gain priority over the buyers and lender
• C. The loan is cancelled automatically
• D. The property is registered by OS priority automatically

Answer: (B)

The thing being tested is how registration priority works in land transactions. There’s a window, the priority period, during which the buyer’s (and any lender’s) application to register their interest is given priority over other potential interests. If you fail to apply for registration within that period, a third party can lodge their own interest and it will take precedence when the title is eventually registered. In practice, that means someone else could secure a valid right to the land ahead of the buyer and lender, potentially defeating or delaying their registered interests. The OS priority concept is about how these competing interests are ordered on the register, so missing the priority period undermines the intended protection for the buyer and lender. The other outcomes—automatic completion of the transfer in equity, automatic cancellation of the loan, or automatic registration by OS priority—do not occur simply because the priority period wasn’t met.