Section 179 — Property Law Act 2007: Mortgagee may adopt agreement for sale and purchase

179 Mortgagee may adopt agreement for sale and purchase (1) If, at any time during which the mortgagee is entitled to exercise a power to sell mortgaged property, the whole or any part of the property is subject to an agreement for sale and purchase entered into by the current mortgagor or any former mortgagor, the mortgagee may elect, by notice served on the purchaser, to adopt the agreement for sale and purchase. (2) On making an election under subsection (1),— (a) the mortgagee has all the rights and powers in relation to the purchaser that the current mortgagor would have had as vendor of the property; and (b) the mortgagee may execute all assurances and do all other things necessary to effect the transfer or assignment of the property; and (c) the mortgagee must account for the proceeds of the sale as though the property had been sold by the mortgagee. (3) The mortgagee’s powers under subsection (2)(b) include, in the case of a mortgage over land under the Land Transfer Act 1952 , the power to do either or both of the following as if the land had been sold by the mortgagee: (a) execute a transfer instrument that may be registered under section 105 of that Act: (b) register a transfer instrument under that Act. (4) The adoption of an agreement for the sale and purchase of property by a mortgagee does not affect any liability in respect of the agreement of the current mortgagor, or any former mortgagor, who entered into or is otherwise bound by the agreement.