S sold to B, then S sold the same lot to X; neither knew of the other sale, and neither took possession. Who is the present owner after registration?

• A. B, because he was the first purchaser in good faith.
• B. X, because he registered the sale in good faith.
• C. Neither B nor X.
• D. S, as long as he does not surrender physical possession of the lot.

Answer: (B)

The main idea tested here is that registration in good faith controls ownership when competing transfers exist. In a system with indefeasibility of title, the person who registers a transfer becomes the owner on the register, and that title takes precedence over unregistered claims, even if the seller previously sold the same property to someone else and neither buyer took possession.

In this scenario, the second sale to X is registered in good faith. Because the transfer is registered, X’s title is recorded as the owner. Possession isn’t needed for title to be established in the register, and the act of registration secures ownership against the unregistered claim. So, after registration, X is the present owner.

The first purchaser’s lack of registration means his claim does not override X’s registered title, even though he was the first buyer. The seller’s failure to possess or transfer valid title also doesn’t defeat the effect of X’s registered transfer. Therefore the correct conclusion is that X is the present owner after registration.