Permanent Custodians v Grida [2014] SASC 75

The lender was granted possession and the borrowers appealed. The borrowers argued that the lender, through their mortgage administrator and broker acted unconscionably in approving loans based on clearly incorrect income. The borrowers had self-certified their income.

The court found that the broker was the agent of the borrower not the lender. The court also found that the primary source of income recorded in the application was the self-certified income declarations by the borrowers and found them under no special disadvantage. The court also noted that the borrowers had signed declarations that they had received independent legal advice. The court held there was no duty on the lender to check the information provided by the borrower.

The court said:

A lender is entitled to rely upon the accuracy of the information and application.

The court found no evidence of any exploitation, inducement or pressure applied. The court dismissed the appeal and removed the stay.

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