Anita wished to raise additional capital for her business,and arranged with Mia for a $10,000 mortgage on her estate,Faracre.Anita did not disclose the fact that she had previously borrowed $10,000 from Charles by way of a mortgage,and Charles had not registered his mortgage against the title of Faracre.Shortly after the mortgage to Mia was registered,Anita conveyed the estate to Neil,for $25,000.Neil was unaware of the mortgages to Mia and Charles,and did not examine the title to Faracre when he registered his deed.
-Neil was unaware of the mortgage to Mia,and consequently,Neil's title to Faracre would not be subject to the mortgage.

Question

Quizplus · Accepted Answer

Neil's title to Faracre would still be subject to the mortgage held by Mia, as it was registered before Neil's deed. The fact that he did not examine the title does not absolve him of the responsibility to pay off any existing mortgages or liens on the property. Charles' mortgage, however, may not be enforceable against Anita or Neil as it was not registered against the title.

Anita Wished to Raise Additional Capital for Her Business,and Arranged