Queensland Consolidated Acts

PROPERTY LAW ACT 1974 - SECT 82

82 Tacking and further advances

(1) After the commencement of this Act, a prior mortgagee shall have a right to make further advances to rank in priority to subsequent mortgages (whether legal or equitable)—

(a) if an arrangement has been made to that effect with the subsequent mortgagees; or

(b) if the mortgagee had no notice of such subsequent mortgages at the time when the further advance was made by the mortgagee; or

(c) if the mortgagee’s mortgage imposes on the mortgagee an obligation to make such further advances.

(2) Nothing in subsection (1) affects the right of a prior mortgagee to rank in priority to subsequent mortgagees in respect of expenses properly incurred in preserving the mortgaged property.

(3) In relation to the making of further advances after the commencement of this Act a mortgagee shall not be deemed to have notice of a mortgage merely by reason that it was registered under an Act providing for registration of mortgages or deeds, if it was not so registered at the time when the original mortgage was created or when the last search (if any) by or on behalf of the mortgagee was made, whichever last happened.

(3A) Subsection (3) applies only where the prior mortgage was made expressly for securing a current account or other further advances.

(4) Save in regard to the making of further advances as mentioned in subsection (1) , the right to tack is abolished.

(4A) However, nothing in this Act shall affect any priority acquired before the commencement of this Act by tacking, or in respect of further advances made without notice of a subsequent encumbrance or by arrangement with the subsequent encumbrancee.

(5) This section applies to mortgages of land made whether before or after the commencement of this Act.