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Part 9SRights of persons acquiring etc. in good faith

Extinction of encumbrances etc.S

92Extinction of encumbrance when lease assignedS

(1)Where the conditions mentioned in subsection (2) are met, a person (“A”) who acquires a registered lease on registration or on a later date by virtue of section 88(4)(b)—

(a)takes that lease free of an encumbrance—

(i)of a kind mentioned in subsection (4), and

(ii)which is not entered in the title sheet as at the date on which A acquires the registered lease, and

(b)any such encumbrance is extinguished.

(2)The conditions are that, as at the date on which the lease is acquired—

(a)A is in good faith, and

(b)the title sheet is not, by virtue of section 67, subject to a caveat relevant to such acquisition by A.

(3)Subsection (1) does not apply to an heritable security which is not entered in the securities section of a shared lease title sheet by virtue of paragraph 8(b) of schedule 1.

(4)The encumbrances are—

(a)a heritable security over the lease,

(b)a title condition such as is mentioned in paragraph (d) or (e) of the definition of “title condition” in section 122(1) of the Title Conditions (Scotland) Act 2003 (asp 9).

Commencement Information

I1S. 92 in force at 8.12.2014 by S.S.I. 2014/127, art. 2