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Australian jurisdictions to align with new National Mortgage Form commencing 2 March 2018 - 1 March 2018

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Property Developments
Property Developments

The document discusses the introduction of the National Mortgage Form 2A (NMF) across Australian jurisdictions including Queensland. As of March 2nd 2018, any mortgages lodged for registration in Queensland must use the new NMF, except for those executed before this date using the old Form 2. The introduction of the NMF is part of a national initiative to standardize mortgages and accommodate e-conveyancing. Mortgagees must still comply with verification of identity requirements for mortgagors. The new NMF does not impact other land title dealings or registered standard mortgage terms. Advice is offered to practitioners to review documents in light of the changes.

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GOLD COAST REAL ESTATE TEAM CONTACTS TO EMAIL A MEMBER OF OUR TEAM USE FIRSTNAME.LASTNAME@MINTERELLISON.COM Bryce Melville Rebecca Sheppard Yvette Mason Shona Condon Marieanne Golubinsky Mark Borg Meaghan Brodie Danika Cardon-Smith PARTNER SENIOR ASSOCIATE ASSOCIATE ASSOCIATE GRADUATE GRADUATE PARALEGAL LAW CLERK T: +61 7 5553 9424 T: +61 7 5553 9490 T: +61 7 5553 9400 T: +61 7 5553 9530 T: +61 7 5553 9539 T: +61 7 5553 9512 T: +61 7 5553 9411 T: +61 7 5553 9484 1 March 2018 Property Developments Australian jurisdictions to align with New National Mortgage Form commencing 2 March 2018 The National Mortgage Form 2A (NMF) was introduced in Queensland in May 2017. It is part of a national initiative to standardise the content and presentation of mortgages across Australia. The Queensland Titles Office has accepted the new NMF for lodgment since 29 May 2017. There is a transition period during which the old Form 2 Mortgage can be used which expires this Friday 2 March 2018. Any mortgages lodged for registration after this period ends must (subject to a limited exception) be prepared using the new NMF. Why has the NMF been introduced? In the last 18 months, there have been movements across Australia towards accommodating e-settlements and e-conveyancing. In our ‘Sort your priorities out!’ Property Developments article from 17 October 2017, we highlighted that Settlement Notices were being replaced with Priority Notices as part of the standardisation movement. The introduction of the NMF is the next phase of this movement in Queensland. The exception to the rule The Queensland Law Society has confirmed that the Titles Office will accept Form 2 Mortgages after the transition period expires if the Form 2 Mortgage is executed before 2 March 2018. Certification requirements The Land Titles Act 1994 (Qld) imposes obligations on mortgagees to verify the identity of their mortgagors. This process is often referred to as a verification of identity (VOI). It is vital that mortgagors still comply with the VOI requirements, as they continue to apply to any mortgages that are prepared using the new NMF. The Queensland Titles Office has given directions on how to comply with the VOI requirements in its Land Titles Practice Manual. These directions are consistent with the VOI requirements for e-conveyancing in all Australian jurisdictions. Standard Terms The introduction of the NMF does not affect other Land Titles dealings, such as the memorandums of standard mortgage terms that are already lodged with the Titles Office. The Queensland Law Society has recommended that mortgagees and practitioners use the introduction of the NMF as an opportunity to review their precedent documents, and any standard term documents that are registered with the Titles Office. Further information If you have any queries about how to complete the new NMF or how the transition to the NMF may affect your existing / proposed mortgages, we would be happy to assist. *Disclaimer The information contained in this update is intended as a guide only. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this update, MinterEllison does not accept liability for any errors it may contain.

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Australian jurisdictions to align with new National Mortgage Form commencing 2 March 2018 - 1 March 2018

  • 1. GOLD COAST REAL ESTATE TEAM CONTACTS TO EMAIL A MEMBER OF OUR TEAM USE FIRSTNAME.LASTNAME@MINTERELLISON.COM Bryce Melville Rebecca Sheppard Yvette Mason Shona Condon Marieanne Golubinsky Mark Borg Meaghan Brodie Danika Cardon-Smith PARTNER SENIOR ASSOCIATE ASSOCIATE ASSOCIATE GRADUATE GRADUATE PARALEGAL LAW CLERK T: +61 7 5553 9424 T: +61 7 5553 9490 T: +61 7 5553 9400 T: +61 7 5553 9530 T: +61 7 5553 9539 T: +61 7 5553 9512 T: +61 7 5553 9411 T: +61 7 5553 9484 1 March 2018 Property Developments Australian jurisdictions to align with New National Mortgage Form commencing 2 March 2018 The National Mortgage Form 2A (NMF) was introduced in Queensland in May 2017. It is part of a national initiative to standardise the content and presentation of mortgages across Australia. The Queensland Titles Office has accepted the new NMF for lodgment since 29 May 2017. There is a transition period during which the old Form 2 Mortgage can be used which expires this Friday 2 March 2018. Any mortgages lodged for registration after this period ends must (subject to a limited exception) be prepared using the new NMF. Why has the NMF been introduced? In the last 18 months, there have been movements across Australia towards accommodating e-settlements and e-conveyancing. In our ‘Sort your priorities out!’ Property Developments article from 17 October 2017, we highlighted that Settlement Notices were being replaced with Priority Notices as part of the standardisation movement. The introduction of the NMF is the next phase of this movement in Queensland. The exception to the rule The Queensland Law Society has confirmed that the Titles Office will accept Form 2 Mortgages after the transition period expires if the Form 2 Mortgage is executed before 2 March 2018. Certification requirements The Land Titles Act 1994 (Qld) imposes obligations on mortgagees to verify the identity of their mortgagors. This process is often referred to as a verification of identity (VOI). It is vital that mortgagors still comply with the VOI requirements, as they continue to apply to any mortgages that are prepared using the new NMF. The Queensland Titles Office has given directions on how to comply with the VOI requirements in its Land Titles Practice Manual. These directions are consistent with the VOI requirements for e-conveyancing in all Australian jurisdictions. Standard Terms The introduction of the NMF does not affect other Land Titles dealings, such as the memorandums of standard mortgage terms that are already lodged with the Titles Office. The Queensland Law Society has recommended that mortgagees and practitioners use the introduction of the NMF as an opportunity to review their precedent documents, and any standard term documents that are registered with the Titles Office. Further information If you have any queries about how to complete the new NMF or how the transition to the NMF may affect your existing / proposed mortgages, we would be happy to assist. *Disclaimer The information contained in this update is intended as a guide only. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this update, MinterEllison does not accept liability for any errors it may contain.