PROPERTY LAW ACT 1974 - SECT 86
Effect of conveyance on sale
PROPERTY LAW ACT 1974 - SECT 86
Effect of conveyance on sale
86 Effect of conveyance on sale
(1) A mortgagee exercising the power of sale conferred by this Act has, in the
case of unregistered land, power by deed or instrument in writing to convey to
and vest in the purchaser the property sold for all the estate (including the
legal estate) and interest in it which the original mortgagor had power to
dispose of freed from all estates, interests and rights to which the mortgage
has priority, but subject to all estates, interests and rights which have
priority to the mortgage.
(2) A mortgagee exercising the power of sale
conferred by this Act has, in the case of land the subject of an instrument of
mortgage registered under the Land Title Act 1994, power to sell and, subject
to any prior registered encumbrance, transfer the land mortgaged and all the
interest in the land mortgaged of the mortgagor.
(3) A conveyance on sale by
a mortgagee, made after the commencement of this Act, shall be deemed to have
been made in exercise of the power of sale conferred by this Act unless a
contrary intention appears.
(4) This section shall not apply to a transfer in
the exercise of the power of sale conferred on a mortgagee under the Land Act
or Mineral Resources Act.
