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Procedure and cost to register a 1st mortgage on a title

Discussion in 'Legal Issues' started by alicudi, 5th Oct, 2016.

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  1. alicudi

    alicudi Well-Known Member

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    Hi

    I am doing some investigation online and are trying to establish the procedure and costs involved to register a 1st mortgage on a title.

    Does anyone know the exact procedure for doing this with a property in Victoria and how can one go about it? I was hoping it was just as simple as filling a form out and posting it off etc and paying a small admin fee.

    Regards,

    alicudi
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    @alicudi - planning on diy or is it going to break the bank?

    @KateAshmor - do you have the link on the Vic Lands website?

    Or linky
     
  3. alicudi

    alicudi Well-Known Member

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    Hi

    I have been to the Vic Lands Website but haven't found a form that I can fill out yet.

    Regards,

    alicudi
     
  4. Perthguy

    Perthguy Well-Known Member

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    Forms, guides and fees - DELWP
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Draw up a loan agreement with mortgaging clauses and attached this to the land titles mortgage document and you will be able tonsend off to land titles office for registration. Would cost about $120 to register. Before registration it can be an equitable mortgage.

    You may also need to request the permission of the first mortgagee and they may want a deed of priority entered.
     
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  6. KateAshmor

    KateAshmor Victorian conveyancing lawyer Business Member

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    Here's some information from the Land Titles Office.
     
  7. alicudi

    alicudi Well-Known Member

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    Hi

    Thanks everyone for your efficient replies. I am going to fill out the mortgage registration documents tonight and send it off and see how it all goes.

    I would have thought a conveyancer or solicitor would have been required to register a mortgage in the state of Victoria but I am happy I can do it myself.

    Regards,

    alicudi
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    What about the mortgage agreement? The form is the way you register an agreement but you need an agreement to register. Who is the mortgagee and the mortgagor and why are you registering?

    Dont you think it wise to get legal advice?
     
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  9. thatbum

    thatbum Well-Known Member

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    I can't think of many good scenarios where its a good idea to do the mortgaging yourself. I can think of lots of scenarios where this is a terrible idea.

    I agree with Terry - why aren't you getting legal advice?
     
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  10. alicudi

    alicudi Well-Known Member

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    Hi

    It is currently a contract between 2 relatives that have done many business transactions over the past 20 years.

    I am registering a 1st mortgage more for my piece of mind just in case the property owner gets married and touch wood something happens in the future and the marriage breaks up and the partner then seeks half of their assets etc.

    With a 1st mortgage registered I believe I am going to have an extra layer of protection up my sleave so if the relative is forced to sell the property I will now at least get my money back and whatever is left over can be split up between themselves.

    Regards,

    alicudi
     
  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Only if the contract charges the property and the parties agree to mortgage the property. Conisdered desth. Bankruptcy limitations act etc too?
     
  12. thatbum

    thatbum Well-Known Member

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    Family law wouldn't 'override' your rights to claim money back under the loan anyway - I'm not sure how useful the mortgaging actually is on top of a properly considered and drafted loan agreement.

    Its likely that your time, effort, and money is better spent on legal assistance to prepare the loan documents rather than mortgaging the property.
     
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  13. alicudi

    alicudi Well-Known Member

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    Hi

    Assuming I am able to register the 1st mortgage successfully what pitfalls or negatives could adding this extra layer of protection to me bring forward or highlight that wasn't there before registering this 1st mortgage?

    Why haven't I gone for legal advice to register this particular 1st mortgage? I am really only thinking of registering this 1st mortgage if it is something that's going to cost $100 or $200 because I have to consider the real risk at hand. I am covered in a number of other ways including security over other assets but adding this extra layer of security which then covers 100% of their assets that they own gives me that last 0.01% extra comfort when I go to sleep every night.

    Maybe I am just been to safe about all of this and should be happy with the security I already hold but since the security of a 1st mortgage has been offered to me I feel I should take it on-board and that it could only be beneficial for me and not be a negative or a burden for me in anyway whatsoever.

    Regards,

    alicudi
     
  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Perhaps its a small amount of money and you are willing to take the risk.

    But you have to ask yourself if the loan agreement is unenforceable will the mortgage be effective?
     
  15. alicudi

    alicudi Well-Known Member

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    Hi

    I have no doubt the existing contract and all 1st mortgages that were prepared by solicitors in the past are enforceable, the current debt ratio is at about 70% so I really shouldn't have any issues should I need them to sell some of their properties to get all of my money back.

    I just thought and as the opportunity is currently been offered to me and I did not or could not fathom any negatives whatsoever by registering a 1st mortgage on an extra property they have recently acquired could be seen as a potential negative or jeopardizing my current situation.

    Regards,

    alicudi
     
  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Your a brave person.
     
  17. alicudi

    alicudi Well-Known Member

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    HI

    I appreciate your response.

    But you are the first person to ever call me brave, I am more like a timid lion..."meow". Everyone that knows me considers me ultra careful and very risk averse and tells me I could have done much much better if I was prepared to add leverage to my investments.. I am the sort of guy that does not get involved in very risky investments and every asset I own is purchased outright without any debt, well has been since I played up to much in my 20's and early 30's!

    Where do you get the impression that I am brave?

    Do you think I am potentially jeopardizing past agreements by adding a 1st mortgage on this extra property that has been offered to me? I considered it as enhancing my security but perhaps I am overlooking something and that is why I welcome all responses.

    Regards,

    alicudi
     
  18. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I have no idea of your situation. But if I was lending someone money - more than say $10k I would seek legal advice. You don't know what you don't know and it sounds like a large sum of money is involved so you are taking a large risk. Banks even get it wrong from time to time.
     
  19. alicudi

    alicudi Well-Known Member

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    Hi

    Ok maybe I haven't made myself perfectly clear but as stated in previous posts in this thread I already hold security (1st mortgages over other assets) and their is an existing loan contract and all of this was a very expensive exercise to implement at the time and yes was all prepared by a solicitor and was quite costly and I don't want to change the existing contract and/or conditions in anyway and implement other professionals in the mix to do so.

    What has happened though is that the person who borrowed the money from me has purchased another property and has offered me the opportunity to take up a 1st mortgage on this extra asset and I thought I should grab it to enhance my security level and even though I am currently comfortable with the amount of security I have at this point in time I personally do not see any advantage in rejecting the opportunity to increase my security level if it was a simple procedure I could legally do without using the services of a solicitor again.

    If it is something that is going to cost $1000 or so I might just leave it and be happy with the current 1st mortgages I hold but if I can lodge it myself for $100 or $200 well then I think why shouldn't I do it?

    Regards,

    alicudi
     
  20. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You're a brave person. Its up to you whether you want to risk it or not. Why not charge the borrower your legal fees?