Victorian Current Acts

TRANSFER OF LAND ACT 1958 - SECT 87B

S. 87B(1) amended by No. 42/2017 s. 32.

    (1)     In respect of a transfer of mortgage, a transferee mortgagee must—

        (a)     take reasonable steps to confirm that the original mortgagee took reasonable steps; or

        (b)     take reasonable steps themselves—

to verify the authority and identity of the mortgagor 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 the registered proprietor of the land that is security for the payment of the debt to which the mortgage relates.

    (2)     For the purposes of this section, a transferee mortgagee is considered to have taken reasonable steps to verify the authority and identity of the mortgagor if—

        (a)     the transferee mortgagee confirms that the original mortgagee took steps consistent with any verification of identity and authority requirements—

              (i)     determined by the Registrar in accordance with section 106A; or

              (ii)     set out in the participation rules (within the meaning of the Electronic Conveyancing National Law (Victoria)); or

        (b)     the transferee mortgagee takes steps consistent with any verification of identity and authority requirements—

              (i)     determined by the Registrar in accordance with section 106A; or

              (ii)     set out in the participation rules (within the meaning of the Electronic Conveyancing National Law (Victoria)).

    (3)     If, in relation to a transfer of a mortgage, the Registrar is satisfied that the transferee mortgagee or the original mortgagee did not take reasonable steps and the registered proprietor of the land did not grant the mortgage, the Registrar may—

        (a)     if the transfer of mortgage has not been registered, refuse to register the transfer of mortgage and remove the mortgage from the Register; or

        (b)     if the transfer of mortgage has been registered, remove the mortgage and the transfer of mortgage from the Register.

    (4)     If the Registrar removes a mortgage from the Register, or removes a mortgage and a transfer of a mortgage from the Register, under subsection (3)—

        (a)     the mortgagee no longer has an indefeasible interest in the mortgaged land; and

        (b)     the mortgage and any transfer of mortgage is void.

S. 87C inserted by No. 70/2014 s. 17.