Which of the following best describes the effect of the Unilateral Notice on priority and subsequent registration?

• A. It protects the priority of a claimed interest but does not guarantee its validity; the buyer takes subject to that interest if valid.
• B. It guarantees the validity of the interest claimed.
• C. It extinguishes any prior interests.
• D. It creates an unregistered interest that takes priority.

Answer: (A)

Unilateral Notice is a notice lodged on a registered title by someone who claims an interest in the land to protect that claim against later dealings. It puts potential buyers on notice that there is an asserted interest and that, if that interest is valid, the buyer will take the land subject to it. It does not guarantee the validity of the interest; validity must be proven separately. It does not extinguish any existing interests or create a new unregistered interest; it simply preserves the claimant's priority against later registered interests. In short, the presence of a unilateral notice safeguards the priority of a claimed interest while not guaranteeing it, and a buyer will take subject to that interest if it is valid.