New South Wales Consolidated Acts

CONVEYANCING ACT 1919 - SECT 111A

111A Duties of mortgagees and chargees in respect of sale price of land

(1) A mortgagee or chargee, in exercising a power of sale in respect of mortgaged or charged land, must take reasonable care to ensure that the land is sold for:

(a) if the land has an ascertainable market value when it is sold-not less than its market value, or

(b) in any other case-the best price that may reasonably be obtained in the circumstances.

(2) Subsection (1) applies to an agent appointed by a mortgagee or chargee to sell the mortgaged or charged land in the same way as it applies to a mortgagee or chargee exercising a power of sale in respect of mortgaged or charged land.

(3) Nothing in section 112 (7) or 115 (2) of this Act, or in section 58 (1) of the Real Property Act 1900 , affects the duty imposed by this section.

(4) The title of the purchaser cannot be challenged on the ground that the mortgagee or chargee has committed a breach of any duty imposed by this section, but a person who suffers loss or damage as a result of the breach of the duty has a remedy in damages against the mortgagee or chargee exercising the power of sale or selling the land.

(5) This section has effect despite any stipulation to the contrary.

(6) Nothing in this section affects the operation of any rule of law relating to the duty of the mortgagee or chargee to account to the mortgagor or chargor.

(7) This section applies to mortgages and charges whether made before or after the commencement of this section but only in relation to a sale arising as a consequence of a default occurring after the commencement of this section.

(8) This section extends to mortgages and charges under the Real Property Act 1900 .