Section 184 — Property Law Act 2007: Protection of purchaser at sale by mortgagee

184 Protection of purchaser at sale by mortgagee (1) This section applies to— (a) a person who purchases mortgaged property from the mortgagee or a receiver (excluding the mortgagee if the mortgagee is the purchaser); and (b) a person claiming the property through a person who purchases mortgaged property from the mortgagee or a receiver (including a person claiming through the mortgagee if the mortgagee is the purchaser). (2) The person— (a) is not answerable for the loss, misapplication, or non-application of the purchase money paid for the property; and (b) is not obliged to see to the application of the purchase money; and (c) need not inquire whether— (i) there has been a default; or (ii) in the case of personal property, the property is at risk; or (iii) any notice required to be given by this Part has been duly given; or (iv) the sale is otherwise necessary, regular, or proper. (3) The person is protected from liability under subsection (2) (except in the case of fraud of which that person was aware) even if, at the time of purchase or other acquisition of the property, that person has actual notice that— (a) there has not been a default; or (b) in the case of personal property, the property is not at risk; or (c) a notice required by this Part was not duly given; or (d) the sale is otherwise unnecessary, irregular, or improper. Compare: 1952 No 51 ss 98(1) , 102 , Schedule 4 cl 8