Lucky Ltd. was a holder of a first registered mortgage against certain lands. The discharge of that mortgage was registered on November 6, 2017 under the land registry system. On the same date a second mortgage was executed in favour of Demar Ltd. which was registered on November 10, 2017. Finally, a mortgage in favour of the original first mortgagee was registered on November 13, 2017. The registration of the discharge of the original first mortgage was inadvertent and the subsequent registration of Lucky Ltd.'s mortgage was to secure the indebtedness owing under the original first mortgage. Demar Ltd. knew of the indebtedness and the registered first mortgage when its mortgage was executed. It did not know of the registration of the discharge of the mortgage, nor did it know that there was an agreement by the mortgagor to give a subsequent mortgage to L. Ltd. to secure that existing indebtedness. Which mortgage takes priority and why ?Explain

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In general mortgage priority is determined by the principle of first in time first in right However ... View the full answer