Property Law Act 1969

Where a mortgage has been discharged, released or postponed as to the whole or any part of the mortgaged property a person dealing in good faith with the mortgagee or with the mortgaged property, shall not be concerned with any trust at any time affecting the mortgage money or the income thereof, whether or not he has notice of the trust, and may assume unless the contrary is expressly stated in the instruments relating to the mortgage,

that the mortgagees (if more than one) are or were entitled to the mortgage money on a joint account; and

that the mortgagee has or had power to give valid receipts for the purchase money or mortgage money and the income thereof (including any arrears of interest) and to release or postpone the priority of the mortgage debt or any part thereof or to deal with the same or the mortgaged property or any part thereof,

This section applies to mortgages made before or after the date of the coming into operation of this Act, but only with respect to dealings effected after that date.

This section does not affect the liability of any person in whom the mortgage debt is vested for the purposes of any trust to give effect to that trust.