LEGAL PRINCIPLE: PROPERTY LAW – Priority of Interests – Registered Lease Takes Priority over Subsequent Sale
PRINCIPLE STATEMENT
As a registered document granting a 50-year lease of land some months before the making of subsequent conveyances, the lease has priority over them.
RATIO DECIDENDI (SOURCE)
"In view of the fact that I have set aside the decision of the learned trial Judge, and finding inter alia that the document Exhibit 9 is valid ... I have to further find, that as a registered document granting a 50 year lease of the land in dispute some months before the making of Exhibits 1 and 2, it has priority over them."
EXPLANATION / SCOPE
Priority among competing interests in land is determined by registration date, not execution date. A lease registered first takes priority over subsequently executed and registered sales or other interests, even if the sales occurred shortly after the lease. This “first to register” rule promotes: certainty in land transactions, reliance on public records, and incentivizes prompt registration. A registered lessee’s interest binds subsequent purchasers regardless of notice—they’re deemed to have constructive notice from the register. This protects lessees who diligently register from being defeated by later transactions. However, fraud, forgery, or other vitiating factors may affect priority. The principle applies generally to competing registered interests: first to register prevails absent exceptional circumstances. This makes title search critical for prospective purchasers