(1) A mortgagee exercising the power of sale conferred by this Chapter, or an express power of sale, has power to convey the property in accordance with subsection (2) -

(a) freed from all estates, interests and rights in respect of which the mortgage has priority,

(b) subject to all estates, interests and rights which have priority to the mortgage.

(2) Subject to subsections (3)(b) and (4), the conveyance -

(a) vests the estate or interest which has been mortgaged in the purchaser,

(b) extinguishes the mortgage, but without prejudice to any personal liability of the mortgagor not discharged out of the proceeds of sale,

(c) vests any fixtures or personal property included in the mortgage and the sale in the purchaser.

(3) This section -