Clause 25

Upon the creation of a qualified folio, the Registrar shall enter thereon a caution warning persons dealing with the registered proprietor therein named that the land comprised therein is held subject to any interest which affected it at the date of the creation of that folio, and so long as the caution remains on that folio that land shall be so held.

In favour of any purchaser of an entire estate or interest in any land comprised in a qualified folio who is registered as the proprietor in the qualified folio, a caution entered on the qualified folio whether before or after the commencement of this Act lapses, in respect of that estate or interest, on the expiration of 5 years from the date of the last conveyance which was cancelled by the Registrar upon the creation of the qualified folio.

A mortgagee or chargee shall not be regarded as a purchaser for the purposes of subsection (2).

When a caution lapses pursuant to subsection (2), the lapsed caution shall constitute a defunct entry and the Registrar shall, after the lodgment of an application in the approved form made by the proprietor of the land cause an entry to be made in respect of the lapsing of the caution.

Upon the lapsing of a caution pursuant to subsection (2), the folio shall cease to be qualified and the land comprised therein shall thenceforth be held subject only to such interests as are registered or notified on the folio and to such interests as are otherwise excepted by section 46.

Any person deprived of land by the operation of this section shall not by reason of that deprivation have any claim against the assurance fund.

For the purposes of subsection (2), “conveyance” has the same meaning as in section 21(6).