(1) Whenever it appears to the Authority that an error which may be capable of rectification has been made in registration, the Authority may enter in the register such inhibition against dealings with the land or the burden affected by such error as it thinks proper for the purpose of protecting the Central Fund against claims for compensation in respect of losses occasioned by registrations made after such error is discovered and before it is rectified.
(2) An inhibition entered in the register under this section shall not affect any registration actually pending in the Land Registry when such inhibition is entered nor prevent the completion of such registration.
(3) Whenever the Authority enters an inhibition under this section, it shall send notice of such inhibition and of the error because of which it was entered to all persons who appear from the register to be affected by such error and to such other persons (if any) as may be prescribed.