Real Property Act 1886

Upon the registration of a transfer by a mortgagee or encumbrancee exercising the power of sale conferred by this Act the estate or interest of the mortgagor or encumbrancer passes to the transferee—

freed and discharged from the mortgage or encumbrance and from all estates, interests and rights to which the mortgage or encumbrance has priority, but—

subject to all estates, interests and rights that have priority to the mortgage or encumbrance.

The registration of a transfer by a mortgagee or encumbrancee exercising the power of sale conferred by this Act is not prevented by a caveat or an instrument that has effect as a caveat where the caveat or the instrument relates to an estate, interest or right to which the mortgage or encumbrance has priority and, upon registration of the transfer—

any such caveat; and

the registration of any such instrument that has effect as a caveat, shall be deemed to have been cancelled.

This section shall be deemed to have had effect from the commencement of this Act.