In accordance with the Real Property Act 1900 s56C(1), the mortgagee must confirm the identity of the mortgagor. The Act provides that the Mortgagee must take reasonable steps to ensure that the person who executed the mortgage is the same person who is to become the registered proprietor of the land. The reasonable steps that the mortgagee must take vary between whether the mortgagor is a company or a person. For a natural person, Regulation 11B of the Real Property Regulations 2008, provides what information needs to be collected and verified in order to satisfy the identification requirements. The information includes the person’s full name, date of birth and residential address and can be verified through an original or certified copy of a primary photographic identification document, such as a drivers licence. If you do not have a photographic identification document, a primary non-photographic identification document and a secondary identification can be used instead. Similarly for a company, Regulation 11C of the Real Property Regulations 2008 provides a list of some of the information that needs to be collected and verified. This includes:
- the name with ASIC
- the registered office in Australia
- the principal place of business in Australia
- the ACN or ARBN
- the registration status
- the name of each director
- the name of the company or co-operative secretary
The mortgagee must also verify this information ‘from a document that shows the results of a search made within the previous 30 days of the ASIC database’. The mortgagee also has the responsibility for 7 years from the date of registration of the mortgage to keep a record of the steps that they took to identify the mortgagor. Also the mortgagee must comply with the Registrar General when asked to produce these records and any other questions regarding the reasonable steps taken. If the mortgagee fails to comply with the Registrar General, the Registrar General can make a recording or refuse to register the mortgage.