All Topics / Legal & Accounting / Short term loan from money lender without consent

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  • Profile photo of FreddieAFreddieA
    Participant
    @freddiea
    Join Date: 2012
    Post Count: 15

    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.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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

    Profile photo of FreddieAFreddieA
    Participant
    @freddiea
    Join Date: 2012
    Post Count: 15

    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.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of FreddieAFreddieA
    Participant
    @freddiea
    Join Date: 2012
    Post Count: 15

    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.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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

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

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