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REAL PROPERTY ACT 1900 - SECT 56C
Confirmation of identity of mortgagor
56C Confirmation of identity of mortgagor
(1) Mortgagee must confirm identity of mortgagor Before presenting a mortgage
for lodgment under this Act, the mortgagee must take reasonable steps to
ensure that the person who executed the mortgage, or on whose behalf the
mortgage was executed, as mortgagor is the same person who is, or is to
become, the registered proprietor of the land that is security for the payment
of the debt to which the mortgage relates.
(2) Without limiting the
generality of subsection (1), the mortgagee is to be considered as having
taken reasonable steps to ensure the identity of the mortgagor under
subsection (1) if the mortgagee has taken the steps prescribed by the
conveyancing rules.
(3) Record-keeping requirements A mortgagee must keep for
a period of 7 years from the date of registration of the mortgage under this
Act (or for such other period as may be prescribed by the regulations)-- (a) a
written record of the steps taken by the mortgagee to comply with subsection
(1), or
(b) a copy of any document obtained by the mortgagee to comply with
subsection (1).
(4) Mortgagee to answer questions and produce documents The
Registrar-General, in determining whether or not this section has been
complied with, may at any time require the mortgagee-- (a) to answer questions
in relation to the steps taken by the mortgagee to comply with subsection (1),
and
(b) to produce for inspection any records kept under subsection (3).
(5)
If a person fails to comply with a requirement made under subsection (4), the
Registrar-General may-- (a) in relation to a registered mortgage--make a
recording in the Register, with respect to the relevant land, to that effect,
and
(b) in relation to a mortgage that has not been registered--refuse to
register, or reject, the mortgage in accordance with section 39 (1A) or refuse
to make any recording or entry in the Register or take any other action in
respect of the mortgage.
(6) Cancellation of recordings in the Register The
Registrar-General may cancel, in such manner as the Registrar-General
considers appropriate, any recording in the Register with respect to a
mortgage if the Registrar-General is of the opinion-- (a) that the execution
of the mortgage involved fraud against the registered proprietor of the
mortgaged land, and
(b) that the mortgagee-- (i) has failed to comply with
subsection (1), or
(ii) had actual or constructive notice that the mortgagor
was not the same person as the person who was, or was about to become, the
registered proprietor of the land that is security for the payment of the debt
to which the mortgage relates.
(7) Before cancelling a recording of a
mortgage in the Register under subsection (6), the Registrar-General must give
notice of the proposed cancellation to the mortgagee and may also give notice
to any other person that the Registrar-General considers should be notified of
the cancellation. Section 12A (2) and (3) apply to and with respect to a
notice given under this section.
(8) Application to transferee of a mortgage
This section applies to the transferee of a mortgage in the same way that it
applies to a mortgagee (that is, requiring the transferee of a mortgage to
take reasonable steps to ensure that the person who executed the mortgage as
mortgagor is the same person who is, or is about to become, the registered
proprietor of the land that is security for the payment of the debt to which
the mortgage relates). Accordingly, a reference in this section to-- (a) the
presentation of a mortgage includes a reference to the presentation of a
transfer of mortgage, and
(b) the mortgagee includes a reference to the
transferee of the mortgage, and
(c) the date of the registration of the
mortgage includes a reference to the date of registration of the transfer of
mortgage.
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