40Charge on land subject to cost notice

#### 40 Charge on land subject to cost notice 40 Charge on land subject to cost notice > > (1) Creation of charge On the registration of a notice under section 39, a charge is created on the land in relation to which the notice is registered to secure the payment to the public authority specified in the notice. > > > (2) When charge ceases to have effect Such a charge ceases to have effect in relation to the land when the first of the following occurs— > > > > > (a) the payment by the person to the public authority of the amount concerned, > > > > > (b) the completion of the sale or other disposition of the land with the consent of the public authority, > > > > > (c) the completion of the sale of the land to a purchaser, in good faith for value, who, at the time of the sale, has no notice of the charge. > > > (3) Charge is not subject to existing charges and encumbrances Such a charge has priority over every charge or encumbrance to which the land was subject immediately before the notice was registered and, in the case of land under the provisions of the [Real Property Act 1900](/view/html/inforce/current/act-1900-025), has priority over every mortgage, lease or other interest recorded in the Register kept under that Act. > > > (4) Charge not affected by change of ownership Such a charge is not affected by any change of ownership of the land, except as provided by subsection (2). > > > (5) Registration of charge is notice If— > > > > > (a) such a charge is created on land of a particular kind and the provisions of any law of the State provide for the registration of title to, or charges over, land of that kind, and > > > > > (b) the charge is so registered, > > > > a person who purchases or otherwise acquires the land after the registration of the charge is, for the purposes of subsection (2), taken to have notice of the charge. > > > (6) Charge on Torrens land not effective until registered If such a charge relates to land under the provisions of the [Real Property Act 1900](/view/html/inforce/current/act-1900-025), the charge has no effect until it is registered under that Act. > > > (7) The provisions of this section have effect despite anything contained in section 42 of the [Real Property Act 1900](/view/html/inforce/current/act-1900-025). > > **s 40:** Am 2009 No 17, Sch 3.4. Subst 2008 No 111, Sch 1 \[9\]. Am 2009 No 106, Sch 2.6.