Where, in relation to land the fee simple in which is proposed to be acquired by a person under this Act, a notice under section 2 is served, the person by whom it is served and every person upon whom it is served shall take every necessary step which is within his power to take to effect a conveyance free from incumbrances of the fee simple and any intermediate estates in the land to the person proposing to acquire the fee simple.

In subsection (1) and section 14 “incumbrances” does not include a mortgage of the estate of the person proposing to acquire the fee simple, and, upon conveyance of the fee simple in land to a person who is acquiring the fee simple therein under this Act the fee simple estate shall be a graft for all purposes on the leasehold estate of the person so acquiring the fee simple and his estate in fee simple shall be subject to any rights or equities arising from the fee simple being such a graft, and, in particular, any undischarged mortgage of that leasehold estate shall attach to, and be enforceable against, the fee simple so acquired.

Where by reason of subsection (2) the fee simple in land is subject to a mortgage, and at the time of the execution of the conveyance of the fee simple the mortgagee is by reason of the mortgage entitled to possession of the documents of title relating to the land, then he shall be similarly entitled to possession of the documents of title relating to the fee simple and the grantee of the fee simple shall within six weeks of the execution of the conveyance of the fee simple deliver it to him, and the mortgage shall apply in the event of the grantee failing unreasonably to deliver the conveyance in accordance with this subsection as if the obligation to do so were included in the terms of the mortgage as set out in that instrument.