81Effect of transfer after sale by mortgagee

81 Effect of transfer after sale by mortgagee (1) If an instrument of transfer executed by a registered mortgagee after the exercise of the power of sale under the mortgage is registered, registration of the instrument vests in the transferee the mortgagor's interest that is transferred, free from liability under: (a) the mortgage and (except where the mortgagor is the purchaser) any other mortgage registered after it; and (b) any other interest registered after it except: (i) a lease, easement or covenant to which the mortgagee has consented in writing or to which he or she is a party; or (ii) a mortgage, easement or other right that is for any reason binding on the mortgagee. (2) The registration of a transfer by a mortgagee exercising a power of sale is not prevented by a caveat or an instrument that has effect as a caveat if the caveat or instrument relates to an estate, interest or right to which the mortgage has priority. (3) On the transfer being registered any caveat and the registration of any instrument referred to in subsection (2) is to be taken to have been cancelled.