(1) If an alienated thing is encumbered by the right of a third party, then the right is extinguished on the acquisition of ownership. In the case governed by section 929 sentence 2, however, this applies only if the acquirer had obtained possession from the alienor. If the alienation is made under section 929a or 930, or if the thing alienated under section 931 was not in the indirect possession of the alienor, the right of the third party is extinguished only when the acquirer obtains possession of the thing as a result of the alienation.
(2) The right of the third party is not extinguished if the acquirer, at the time that is the relevant time under subsection (1), is not in good faith with regard to the right.
(3) If, in the case governed by section 931, the right belongs to the third party possessor, it is not extinguished even with regard to a good faith acquirer.