Short term loan from money lender without consent

Viewing 7 posts - 1 through 7 (of 7 total)

FreddieA
Participant
@freddiea
Join Date: 2012
Post Count: 15
June 24, 2014 - 10:05 pm
Hi all ,
My sister owns a property with her partner and both are on title and mortgage.
Her partner has borrowed money against their property from a “professional money lender” via a solicitor (second mortgage?) to pay off old debts without her consent.
Is this legal?
If it’s not legal, is the loan void?
Any help and advice would be much appreciated.
Thank you.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
June 26, 2014 - 5:44 pm
How did he do this? Is the mortgage registered on title?
An individual owner can mortgage their interest in the property, but it would be rare to find a lender willing to loan on this basis. It is possibly an unregistered equitable mortggage.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
June 26, 2014 - 6:09 pm
Agree with Terry not sure how they could register the mortgage without signing the loan documents.
We do a lot of short term business loans and certainly would never do a deal without the Title holders both executing the mortgage.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
FreddieA
Participant
@freddiea
Join Date: 2012
Post Count: 15
July 3, 2014 - 9:57 pm
Sorry for the late reply guys.
The mortgage is registered on title.
The lender now has a second mortgage (caveat?) on the property. All done without my sisters consent or knowledge.
They are both on title and both on the mortgage. Is there a legal way out if this for her?
Thank you for your help.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 3, 2014 - 10:27 pm
One person can consent to mortgaging their share of the property.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
FreddieA
Participant
@freddiea
Join Date: 2012
Post Count: 15
July 3, 2014 - 10:34 pm
Thanks for the reply terry.
Does my sister have any legal rights in this issue?
The loan that this idiot signed for is 6 months at 4% per month compounding.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 3, 2014 - 10:48 pm
I don’t know.
His loan is his business, but the lender could try to take possessio of the property and this could cause her to have to buy his share or to sell possibly. she should seek legal advice.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au