Samson bought a house from Kevin with a closing dateof June 20 with the transfer (deed) dated for this same date. Unknown to Samson, two weeks earlier, Kevin had obtained a loan from a bank, using the house as collateral
Owing to an administrative oversight, the bank did not get the mortgage documents registered until 2 pm on June 20.Samson's lawyer submitted the transfer for registration at 3.30 pm on June 20. Samson doesn't know if he should complete the deal. Which one of the following statements most accurately describes the legal position?
A) Samson's interest would be subject to the bank's mortgage.
B) Since Samson was not aware of the mortgage, the mortgage is not enforceable against him.
C) The bank has a valid mortgage, but it would be subject to Samson's interest.
D) Samson's deed is dated before the mortgage so it has priority over the mortgage.
E) The mortgage is only enforceable as a simple debt against Kevin.
A
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