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 would be obliged to pay Mia's registered mortgage to obtain a clear title to Faracre.

Question

Quizplus · Accepted Answer

Mia's mortgage was registered against the title of Faracre before Neil's deed was registered, which means that it takes priority over any subsequent interests. Therefore, Neil would have to pay off Mia's mortgage to remove the encumbrance on the title and obtain a clear title to Faracre. Charles' unregistered mortgage is irrelevant in this scenario as it does not affect the priority of Mia's registered mortgage.

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