Chandra v Perpetual Trustees Victoria [2007] NSWSC 694

In this case Interstar loaned $750,000 on a forged mortgage. The fraudster was apprehended and was sent to jail. The mortgage had been registered so Interstar should have been able to rely on the fact that under the Torrens system title is guaranteed by the state. However Interstar were using an all monies mortgage. This meant the mortgage, although recognised by the Court, was deemed to secure nothing. The solicitor who was duped into applying for a replacement CT was found to owe the mortgagor a duty of care (the Judge citing an article by Matthew Bransgrove in the NSW Law Society Journal) but not the lender a duty of care. In a surprise outcome the Registrar General was ordered to compensate the lender for the loss because it had issued a replacement CT to a fraudster.

Bransgroves Lawyers continually warns lenders not to use all monies mortgages. Despite the raft of recent cases:

  1. Small v Tomasetti [2001] NSWSC 1112
  2. Perpetual Trustees Victoria Ltd v Tsai [2004] NSWSC 745
  3. Permanent Custodians v Yazgi [2007] NSWSC 279
  4. Printy v Provident Capital Limited [2007] NSWSC 287
  5. Chandra v Perpetual Trustees Victoria Ltd [2007] NSWSC 694
  6. Perpetual Limited v Costa [2007] NSWSC 1093
  7. Queensland Premier Mines Pty Ltd v French [2007] HCA 53
  8. Perpetual Trustees Victoria Limited v Ford [2008] NSWSC 29
  9. Perpetual Trustees Victoria Ltd v Van den Heuvel [2008] NSWSC 350
  10. Vella v Permanent Mortgages P/L [2008] NSWSC 505
  11. Provident Capital Ltd v Printy [2008] NSWCA 131
  12. Perpetual Trustees Australia v Richards [2008] NSWSC 658

lenders continue to ignore the peril of using all monies mortgages. Matthew Bransgroves has been warning lenders since 17 November 2003 (in a College of Law paper on Indefeasibility of Mortgages) not to use all monies mortgages.

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