National Asset Management Agency Act 2009

143.

Overreaching for protection of purchasers.

143.— (1) Subject to subsection (2) , a conveyance by NAMA (including a conveyance by way of an instrument referred to in section 142 ) to a purchaser of a legal estate or legal interest in land overreaches any equitable interest in the land so that the equitable interest ceases to affect that estate or interest, whether or not the purchaser has notice of the equitable interest.

(2) Subsection (1) does not apply to an equitable interest—

( a) to which the conveyance is expressly made subject,

( b) that arises by virtue of an equitable mortgage related to the land concerned,

( c) that, before the conveyance, is registered against the land in the Registry of Deeds or the Land Registry, or

( d) that—

(i) in the case of an interest in registered land, is a burden of a kind referred to in section 72(1)( j) of the Registration of Title Act 1964, or

(ii) in the case of an interest in unregistered land, would take effect as such a burden if the land were registered land.

(3) Where an equitable interest is overreached under this section it attaches to the proceeds arising from the conveyance, and effect shall be given to it accordingly.

(4) NAMA shall discharge any obligations under subsection (3) as soon as is practicable.

(5) For the avoidance of doubt, overreaching in accordance with subsections (1) and (2) has effect in relation to land that is or includes a person’s principal private residence.

(6) In this section “equitable mortgage” means a mortgage created by—

( a) the deposit of documents of title relating to the legal estate or legal interest in the land concerned, or

( b) an undertaking by a solicitor to hold the documents of title relating to the legal estate or legal interest in the land concerned in trust for a credit institution and which undertaking, where applicable, has been registered as a charge under section 99 or 111 of the Companies Act 1963.