(1)  On the registration of a memorandum of transfer executed by a registered mortgagee or encumbrancee for the purpose of a sale pursuant to section 78 , the estate or interest of the mortgagor or encumbrancer described in that memorandum of transfer to be conveyed shall pass to and vest in the purchaser, freed and discharged from all liability on account of –

(a) the mortgage or encumbrance;

(b) any mortgage or encumbrance registered subsequent to the mortgage or encumbrance; or

(c) any caveat that if not removed would forbid the registration of any dealing by the purchaser.

(2)  Where a memorandum of transfer to which subsection (1) relates is registered –

(a) the title of the purchaser is not impeachable on the ground that –

(i) a case had not arisen to authorize the sale;

(ii) due notice to pay the money due or owing to the mortgagee or encumbrancee as required by this Act was not given by the mortgagee or encumbrancee to the mortgagor or encumbrancer; or

(iii) the power of sale was otherwise improperly or irregularly exercised;

(b) a person who suffers any loss or damage by reason of the registration of the memorandum of transfer is entitled to recover damages, by action in a court of competent jurisdiction, from the person who exercised the power of sale; and

(c) the purchaser shall, for the purposes of section 41 , be deemed to have contracted, or dealt with, or taken a transfer from, the registered proprietor of the land.