Who may lose out if third party interests gain priority due to late registration?

• A. The buyers and the lender
• B. The seller only
• C. The third parties
• D. The Land Registry

Answer: (A)

This question hinges on how priority works when interests are registered at different times. In a title registration system, if a third party brings their interest onto the register late but it is treated as having priority, that interest can take effect ahead of the interests relied on by a buyer or a mortgagee. That means the property could be subject to the third party’s rights even though those rights were registered later, undermining the buyer’s title and the lender’s security.

So, who would be disadvantaged? the buyers and the lender. The buyer risks acquiring a title that is subject to the third party’s interest, and the lender risks that their charge may be defeated or subordinated by that late-registered right. The seller isn’t the primary loser in this scenario, and the third parties themselves benefit from gaining priority, while the Land Registry is the record-keeper, not a party that loses out. Practically, this is why timely and accurate registration matters for buyers and lenders, and why due diligence focuses on identifying any potential third-party interests.