Water Act 1989

On the recording in the water register of a transfer under clause 7 pursuant to the exercise of a power of sale under clause 6, the interest of the mortgagor in the water share vests in the purchaser as owner by transfer, freed and discharged from all liability on account of—

the mortgage; and

except where the mortgagor is the purchaser, of any subsequent recorded mortgage of a water share; and

any subsequent recorded limited term transfer, except for a transfer to which the mortgagee gave consent.

Subclause (1) does not apply to a mortgage that is for any reason binding on the mortgagee.

The title of a purchaser of a water share is not impeachable on the ground that no case had arisen to authorise the sale under clause 6 or that due notice was not given or that the power of sale under clause 6 was otherwise improperly or irregularly exercised but any person affected by that sale may seek a remedy in damages in a court of competent jurisdiction against the person exercising the power.