Commentary on Sections Part 2 – Security over Moveable Property Request for information Section 108 – Acquisition of property confirmed by creditor not to be encumbered property
461.This section sets out a special rule to protect purchasers of encumbered property. It should be read with section 107.
462.If a person making a request under section 107 is advised wrongly by the person to whom the request was made that the particular property is not subject to the pledge and the person then acquires the property (or a right in it) in good faith within 3 months, then the pledge is extinguished in relation to the property (or right) acquired.