Queensland Consolidated Acts

LIMITATION OF ACTIONS ACT 1974 - SECT 37

37 Effect of acknowledgment or part payment on a person other than the maker or recipient

(1) An acknowledgment of the title to land or mortgaged personalty by a person in possession thereof shall bind all other persons in possession during the ensuing period of limitation.

(2) A payment in respect of a mortgage debt by the mortgagor or a person in possession of the mortgaged property shall, so far as any right of the mortgagee to foreclose or otherwise to recover the property is concerned, bind all other persons in possession of the mortgaged property during the ensuing period of limitation.

(3) Where 2 or more mortgagees are, by virtue of the mortgage, in possession of the mortgaged land, an acknowledgment of the mortgagor’s title or of the mortgagor’s equity of redemption by 1 of the mortgagees shall bind the mortgagee and the mortgagee’s successors only and shall not bind any other mortgagee or the mortgagee’s successors and where the mortgagee by whom the acknowledgment is given is entitled to a part of the mortgaged land and not to an ascertained part of the mortgage debt, the mortgagor shall be entitled to redeem that part of the land on payment with interest of the part of the mortgage debt that bears the same proportion to the whole of the debt as the value of the part of the land bears to the value of the whole of the mortgaged land.

(4) Where there are 2 or more mortgagors and the title or right to redemption of 1 of the mortgagors is acknowledged, the acknowledgment shall be deemed to have been made to all the mortgagors.

(5) An acknowledgment of a debt or other liquidated pecuniary claim shall bind the acknowledger and the acknowledger’s successors but not any other person.

(5A) Notwithstanding subsection (5) , an acknowledgment made after the expiration of the period of limitation prescribed for the bringing of an action to recover the debt or other claim shall not bind a successor on whom the liability devolves on the determination of a preceding estate or interest in property under a settlement taking effect before the date of the acknowledgment.

(6) A payment made in respect of a debt or other liquidated pecuniary claim shall bind all persons liable in respect thereof.

(6A) Notwithstanding subsection (6) , a payment made after the expiration of the period of limitation prescribed for the bringing of an action to recover the debt or other claim shall not bind a person other than the person making the payment and the person’s successors and shall not bind a successor on whom the liability devolves on the determination of the preceding estate or interest in property under a settlement taking effect before the date of payment.

(7) An acknowledgment by 1 of the several personal representatives of a claim to the personal estate of a deceased person or to a share or interest therein or a payment by 1 of the several personal representatives in respect of such claim shall bind the estate of the deceased person.

(8) In this section—

"successor" in relation to a mortgagee or person liable in respect of a debt or claim means the mortgagee’s or person’s personal representatives and any other person on whom the rights under the mortgage or, as the case may be, the liability in respect of the debt or claim devolve, whether on death or bankruptcy or the disposition of property or the determination of a limited estate or interest in settled property or otherwise.