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.
-Anita would be obliged to pay Charles the $10,000 covered by the unregistered mortgage.
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