Strict requirements for mortgagees to take positive steps to verify the identity of borrowers were introduced in Victoria on 24 September 2014.
Similar requirements are already in place in Queensland, New South Wales, South Australia and Western Australia.
The Transfer of Land Amendment Act 2014 (Vic) received Royal Assent on 23 September 2014 and commenced the following day. It amends the Transfer of Land Act 1958 (Vic) to require a mortgagee to properly verify the authority and identity of a mortgagor by taking ‘reasonable steps’ before the execution or variation of a mortgage. Failure to do so will prevent lenders from obtaining the benefit of infeasibility and the mortgage will be void.