A third party right will bind a purchaser only if correctly registered. Which option best describes this principle?

A third party right will bind a purchaser only if correctly registered. Which option best describes this principle?

• A. It binds the purchaser regardless of registration
• B. It binds the purchaser only if there is constructive notice
• C. It binds the purchaser only if correctly registered
• D. It binds the purchaser only if the grantor consents

Answer: (C)

The principle is that a third-party right binds a purchaser only when it is correctly registered against the land title. Registration puts the right on the register so future buyers can see it and take the land subject to that right. If the right isn’t correctly registered, the purchaser isn’t bound by it in the ordinary course, which provides certainty in property transactions. There are limited exceptions, such as overriding interests or actual notice, but the standard rule emphasized here is that proper registration is what makes the right binding on a new owner. The other options don’t fit because a purchaser is not bound simply by the existence of the right, by constructive notice, or by the grantor’s consent; binding effect comes from correct registration.

The principle is that a third-party right binds a purchaser only when it is correctly registered against the land title. Registration puts the right on the register so future buyers can see it and take the land subject to that right. If the right isn’t correctly registered, the purchaser isn’t bound by it in the ordinary course, which provides certainty in property transactions. There are limited exceptions, such as overriding interests or actual notice, but the standard rule emphasized here is that proper registration is what makes the right binding on a new owner. The other options don’t fit because a purchaser is not bound simply by the existence of the right, by constructive notice, or by the grantor’s consent; binding effect comes from correct registration.