Land Registration etc. (Scotland) Act 2012

92 Extinction 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).