Definition of encumbrances

(1) The following rights, burdens and dealings other than legal charges, that is to say, (a) rights for life or any other limited or conditional rights in or over the land enduring for three years and upwards; (b) burdens, securities, mortgages or liens upon land, arising in equity by which the land is subjected to particular interests in favour of individuals, or the revenues thereof or affected for the payment of annuities or temporary charges; (c) dealing with the land which, in the event of sale, would limit the free use and disposal thereof by the purchaser, such as leases for years and restrictive covenants, easements, rights and privileges in, over or out of the land, rights in or over the land arising out of any trust or settlement, whether created by will or deed; (d) judgments or orders of the Supreme Court affecting the land or to recover a sum of money against the proprietor thereof; (e) an option to purchase the land for which a consideration amounting to five hundred dollars or upwards has been given, 69 shall be encumbrances registrable under Part IV or which may be recorded under Part VI of the General Registry Act, Cap. 327. 11 of 1958. (2) Such encumbrances in the case of registered land shall upon registration be noted by the Registrar on the certificate of title relating to the land affected thereby. (3) An encumbrance of the nature described in paragraph (a), (c) or (e) of subsection (1) of this section, shall have priority to a legal charge registered or recorded subsequent to such encumbrance, and every such legal charge shall be held and be exigible subject to the rights, dealings, privileges, restrictions and interests created by any such encumbrance. (4) Subject to subsection (3) of this section, a legal charge in the case of registered land shall have priority over every encumbrance noted on a certificate of title, whenever that encumbrance was registered. (5) Subject to subsection (3) of this section a legal charge shall, in the case of unregistered land, have priority over every encumbrance upon the same land whenever that encumbrance was recorded.