117Transferring of land subject to mortgage, encumbrance

117 Transferring of land subject to mortgage, encumbrance or charge to indemnify transferor (1) In every instrument, transferring an interest in land under this Act, subject to mortgage or encumbrance, there shall be implied the following covenant by the transferee: That the transferee will pay the interest, or annuity, or rent charge secured by the mortgage or encumbrance after the rate and at the time specified in the instrument creating the mortgage or encumbrance, and will indemnify and keep harmless the transferor from and against the principal sum secured by the instrument, and from and against all liability in respect of any of the covenants therein contained, or by this Act implied on the part of the transferor. (2) In every instrument transferring an interest in land under this Act subject to a charge securing the payment of an amount to the Territory under section 108B, there shall be implied the following covenant by the transferee: That the transferee will pay to the Territory the amount secured by the charge on the land and will indemnify and keep harmless the transferor against the amount secured by the charge, and from and against all liability in respect of the failure by the transferor to pay the amount secured by the charge within the period of 1 month after the transfer.