What may happen if the OS1 priority expires before the transfer and mortgage are registered?

• A. The buyers automatically lose any beneficial interest.
• B. The transfer becomes void.
• C. The mortgage is converted into a lease.
• D. Third party interests may gain priority over the buyers and the lender.

Answer: (D)

OS1 priority provides temporary protection for a planned transfer and mortgage, ensuring those interests keep priority during the gap before registration. If that protection expires before registration, a third party with an unregistered interest may step in and secure priority over the title. As a result, when the transfer and mortgage are finally dealt with on the register, that third party’s interest could outrank both the buyers’ beneficial interest and the lender’s charge, potentially defeating or delaying the intended outcome. This is why timely registration or alternative safeguards are crucial. So, when OS1 priority expires, third party interests may gain priority over the buyers and the lender.