Part 9Rights of persons acquiring etc. in good faith
Extinction of encumbrances etc.
92Extinction of encumbrance when lease assigned
(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).