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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Conveyancing Amendment
(Mortgages) Bill 2001
Contents
Page
1 Name of Act 2
2 Commencement 2
3 Amendment of Conveyancing Act 1919 No 6 2
Schedule 1 Amendment 3
b00-404-p03.842
New South Wales
Conveyancing Amendment
(Mortgages) Bill 2001
No , 2001
A Bill for
An Act to amend the Conveyancing Act 1919 to make further provision with
respect to the duties of mortgagees and chargees.
Clause 1 Conveyancing Amendment (Mortgages) Bill 2001
The Legislature of New South Wales enacts: 1
1 Name of Act 2
This Act is the Conveyancing Amendment (Mortgages) Act 2001. 3
2 Commencement 4
This Act commences on the day that is 3 months after the date of 5
assent, except in so far as it is commenced sooner by proclamation. 6
3 Amendment of Conveyancing Act 1919 No 6 7
The Conveyancing Act 1919 is amended as set out in Schedule 1. 8
Page 2
Conveyancing Amendment (Mortgages) Bill 2001
Amendment Schedule 1
Schedule 1 Amendment 1
(Section 3) 2
Section 111A 3
Insert after section 111: 4
111A Certain duties of mortgagees and chargees 5
(1) In exercising a power of sale in respect of mortgaged or 6
charged property, a mortgagee or chargee must take all 7
reasonable care to sell the property for: 8
(a) not less than its market value, if the property has a 9
market value when it is sold, or 10
(b) the best price that is reasonably obtainable, having 11
regard to the circumstances existing when the property 12
is sold, if the property does not have a market value 13
when it is sold. 14
(2) It is the duty of a mortgagee or chargee in possession of 15
mortgaged or charged property to take all reasonable care to 16
prevent the value of the mortgaged or charged property from 17
being diminished. 18
(3) The title of the purchaser is not impeachable on the ground that 19
the mortgagee or chargee has committed a breach of any duty 20
imposed by this section, but a person damnified by the breach 21
of duty has a remedy in damages against the mortgagee or 22
chargee exercising the power of sale. 23
(4) An agreement or stipulation is void to the extent that it purports 24
to relieve, or might have the effect of relieving, a mortgagee or 25
chargee from a duty imposed by this section. 26
(5) Nothing in this section affects the operation of any rule of law 27
relating to the duty of the mortgagee or chargee to account to 28
the mortgagor or chargor. 29
Page 3
Conveyancing Amendment (Mortgages) Bill 2001
Schedule 1 Amendment
(6) This section applies to mortgages and charges whether made 1
before or after the commencement of this section but only to a 2
sale in the exercise of a power arising upon or in consequence 3
of a default occurring after the commencement of this section. 4
(7) This section applies to mortgages and charges under the Real 5
Property Act 1900. 6
Page 4
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