—(1) A caveat shall lapse and cease to affect land —
at the expiration of the period of 30 days (or of such further period as the court may direct) from the date of the service of the notice given under section 120; or
(2) Where a dealing in favour of the caveator is lodged and accepted by the Registrar, and the caveator states either personally or by his solicitor or attorney that the interest in the land affected under the dealing is similar to that in the caveat, the dealing may be registered by the Registrar, and upon its registration, the related caveat shall lapse and cease to have any effect.
(3) Notwithstanding the absence of any statement made by the caveator that his interest is similar to that affected under the dealing as provided in subsection (2), the Registrar may register the dealing under the following circumstances:
in the case of a dealing disposing of an estate or interest in land, if the Registrar is satisfied that the estate or interest to which the caveator claims to be entitled would, on the dealing being registered, vest wholly in the caveator; and
in the case of an instrument of mortgage or charge, if the Registrar is satisfied that the estate or interest which the caveator claims as mortgagee or chargee is one and the same interest mortgaged or charged in the instrument of mortgage or charge and the caveator may be registered as the mortgagee or chargee.
(4) Where, after effecting service of a notice of the intention to register a dealing in accordance with section 120(1), the Registrar registers the dealing that does not completely dispose of the estate of the registered proprietor in the land to which the caveat relates or exhaust the intended functions of the caveat, the caveat shall be deemed to have lapsed only to the extent necessary to permit the registration.
(5) Where a caveat has lapsed either wholly or partially, the Registrar shall enter in the Caveat Index or the land-register, as the case may be, an appropriate notification of the lapsing.
(6) The lapsing of a caveat under subsection (1) shall not prevent the lodgment of a fresh caveat in respect of the same matter.
(7) Where a caveat has lapsed under subsection (1)(a), any further caveat lodged in respect of the same estate or interest in land claimed under that lapsed caveat and purporting to be based on the same facts as the lapsed caveat (other than a fresh caveat lodged against any person except the caveatee named in the lapsed caveat) has no effect unless the caveator has obtained leave of the court to lodge the further caveat, and that order or an office copy of that order has to accompany the further caveat when it is lodged with the Registrar.
(8) The Registrar shall not be concerned with the validity of the further caveat referred to in subsection (7) and if such further caveat is lodged without being accompanied by the order as mentioned in that subsection, the caveator shall be liable to pay compensation to any person who sustains pecuniary loss that is attributable to such an act or omission in complying with that subsection.
(9) Subsection (1)(b) shall also apply to a caveat which relates to land not brought under the provisions of this Act and was lodged and entered in the Caveat Index under sections 116 and 117.