Real Property Act 1900

If a caution lapses under section 28M or 28MA then, subject to subsection (2), the lapsing operates to free the land or the estate or interest in respect of which the caution lapses from any interests that affected the land at the date on which it was brought under this Act by the creation of a qualified folio of the Register.

However, the lapsing of a caution under section 28M or 28MA does not operate to defeat a subsisting interest that—

was, immediately before the lapsing—

recorded in the qualified folio, or

the subject of a caveat affecting land comprised in the qualified folio, or

is preserved by section 42.

The provisions of this section and sections 28M (3) and 28MA (3) do not operate to defeat the estate or interest of a mortgagor in land in respect of which a Registrar-General’s caveat has been recorded under section 12B (2).