(1) For the purposes of section 29S, a mortgagee is deemed not to have constructive notice of the interest of a purchaser under a terms contract unless notice of the interest of the purchaser under the terms contract would have come to the mortgagee's knowledge if the mortgagee had made—
(a) a proper inspection of the relevant land; and
(b) such inquiries as ought reasonably to be made by the mortgagee of the mortgagor as to the rights of any person in possession of the relevant land; and
(c) inquiries of the municipal council of the municipal district in which the relevant land is situated as to who is shown on the rate book as owner of the relevant land; and
(d) such searches, inquiries and inspections in the Office of the Registrar of Titles and Registrar-General as reasonably ought to have been made by the mortgagee.
(2) Nothing in subsection (1) limits or affects the operation of section 42(2)(e) of the Transfer of Land Act 1958 .
Pt 1 Div. 4 Subdiv. 5 (Heading) amended by No. 23/2016 s. 34.
Subdivision 5—Restrictions on legal practitioners and conveyancers
S. 29W (Heading) amended by No. 23/2016 s. 35(1).
S. 29W inserted by No. 6/2008 s. 33.