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Conveyance on sale.
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104.— (1) A mortgagee exercising the power of sale conferred by this Chapter, or an express power of sale, has power to convey the property in accordance with subsection (2)—
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[CA 1881, s. 21(1)]
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(a) freed from all estates, interests and rights in respect of which the mortgage has priority,
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(b) subject to all estates, interests and rights which have priority to the mortgage.
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(2) Subject to subsections (3)(b) and (4), the conveyance—
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(a) vests the estate or interest which has been mortgaged in the purchaser,
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(b) extinguishes the mortgage, but without prejudice to any personal liability of the mortgagor not discharged out of the proceeds of sale,
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(c) vests any fixtures or personal property included in the mortgage and the sale in the purchaser.
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(3) This section—
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(a) applies to a sale by a sub-mortgagee so as to enable the sub-mortgagee to convey the head-mortgagor’s property in the same manner as the mortgagee,
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(b) does not apply to a mortgage of part only of a tenancy unless any rent which is reserved and any tenant’s covenants have been apportioned as regards the property mortgaged.
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(4) Where the mortgaged property comprises registered land, the conveyance is subject to section 51 of the Act of 1964.
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