Section 197 — Property Law Act 2007: Effect of transfer executed or registered under section 196

197 Effect of transfer executed or registered under section 196 (1) A transfer instrument, executed or registered by the Registrar under section 196 , transfers or assigns the land to which it relates to the transferee or assignee,— (a) free from all liability on account of— (i) the vendor mortgagee’s mortgage; and (ii) any subsequent mortgage or other subsequent encumbrance over the land; but (b) subject to— (i) any mortgage or other encumbrance, estate, or interest over or in the land that has not been discharged or otherwise terminated, to the extent that it has priority over the vendor mortgagee’s mortgage; and (ii) any other estate or interest in the land that is binding on the vendor mortgagee. (2) Subsection (1) is, in the case of an executed transfer instrument, subject to the need for its registration. Compare: 1952 No 51 s 101(4), (5)