(1) In this section, a reference to the principal unit means the principal unit that was subdivided to create the subsidiary unit title development, the plan for which is being cancelled.
(2) On the cancellation of the unit plan,—
(a) the following estates are merged and vested in the persons who were the owners of the units immediately before the cancellation in shares proportional to what was, at that time, their ownership interest:
(i) the fee simple estate, or (as the case may be) the estate as lessee or licensee, that was held by the subsidiary body corporate in that part of the principal unit that immediately before the cancellation comprised common property; and
(ii) the fee simple estate, or (as the case may be) the estate as lessee or licensee, in that part of the principal unit that immediately before the cancellation comprised units:
(b) except as provided in paragraph (c), an easement or covenant of a kind referred to in section 62 continues and must be registered against the computer register of the principal unit:
(c) every easement or covenant over any unit and every easement or covenant appurtenant to a unit is cancelled.
(3) This section is subject to section 182.