Mortgages - Legal Practitioners' Liability Committee

Mortgage claims are often one of our most expensive areas of claims. The claims usually involve acting for private or not sophisticated lenders and not ensuring the security was adequate either because the right checks and balances were not put in place, directors guarantees were not obtained or the security documents were not registered promptly.

Articles
Alerts
Resources
Practice Risk Guides
Checklists
Videos

Are you on top of the Windfall Gains Tax regime?

Conveyancing, Tax, Mortgages 29 Nov 22

Practitioners need to understand the potential tax implications of their clients’ property, lending and commercial transactions and the Windfall Gains Tax is no exception.

Establishing identity

Conveyancing, Mortgages, Solicitors Certificates, Verification of Identity 09 Oct 20

This LIJ article looks at the recent case of C&F Nominees Mortgage Securities Ltd V Karbotli & Ors [2020] in which the Court found reasonable steps to verify identity were not fulfilled and provides some key takeaways for lenders and their legal advisers.

Acting For Private Lenders Can Be High Risk

Conveyancing, Mortgages 22 Sep 20

Acting for private lenders in short term, high interest urgent loans is fraught with risk even for the most diligent solicitor. This LIJ article covers a claim in which this was the case, suggests some lessons practitioners can learn from it and provides some tips on how to reduce risk.

Independent valuations essential for lenders

Mortgages 09 May 19

When acting for private lenders you need to pay careful attention to the security on offer. If borrowers default the focus will be squarely on the security and why the lawyer didn’t make sure it was adequate.

Be secure when securing lenders

Mortgages 02 Nov 18

Making assumptions about your retainer with longstanding lender clients is risky.

Are your lender clients secure?

Mortgages 31 Aug 18

This article contains a reminder regarding common causes for claims in relation to mortgages.

When parents lend to children

Mortgages 01 Jul 18

Be alert to the risks when advising on parent loans to home buyers.

Risks for the bank of mum and dad

Conveyancing, Mortgages 11 May 18

Practitioners asked to act in transactions where parents lend money to their children to help them buy a house should stop and think about the transaction. Who are they acting for? Who else could think the practitioner is looking after their interests?

Ensure business purpose declaration precedents are up to date

Mortgages 18 Nov 16

This article from 2016 discusses a claim in which a practitioner prepared a business purpose declaration that was based on an outdated precedent.

Private lending pitfalls

Mortgages, Engagement/retainer management, Professional Responsibility 01 Sep 15

This article from 2015 covers common pitfalls of private lender clients and recommends steps practitioners can take to mitigate risk.

New rule old forms – giving a solicitor’s certificate under the new practice rules

Mortgages, Solicitors Certificates, Professional Responsibility 03 Jul 15

With the introduction of the Legal Profession Uniform Legal Practice (Solicitors) Rules 2015 practitioners should no longer provide certificates of advice for borrowers and guarantors to lenders other than those referred to in rule 11.

Sale of Land and the PPS Act

Conveyancing, Leases, Mortgages, Personal Properties Securities, Mortgages, Personal Properties Securities 11 Sep 13

Practitioners for both vendors and purchasers need to understand that the Personal Property Securities Act 2009 (Cth) (PPS Act) may apply to a contract of sale of land because:

Sometimes a vendor selling land, also sells goods to the purchaser.
Sometimes a vendor selling land also transfers a licence to the purchaser.
The sale of land may be subject to a lease where the vendor may have received a cash security deposit from the tenant.
The sale of land may be subject to a lease where the vendor may have also leased goods to the tenant.

The LPLC recommends that practitioners consider the matters in this Alert when acting in relation to the sale of land.

Tax limitations

Conveyancing, Tax, GST, Leases, Personal Properties Securities, Sale and Purchase of Business, Building and Construction, Will Making, Powers of Attorney, Beneficiaries, Mortgages, Commercial 05 Jun 23

Time limits most commonly missed in relation to tax.

Bankruptcy limitations

Conveyancing, Tax, Leases, Personal Properties Securities, Sale and Purchase of Business, Building and Construction, Will Making, Beneficiaries, Mortgages, Personal Properties Securities, Solicitors Certificates, Personal Injury, Commercial 05 Jun 23

Time limits most commonly missed in relation to bankruptcy.

Contribution limitations

Conveyancing, Tax, GST, Leases, Sale and Purchase of Business, Building and Construction, Mortgages, Personal Injury, Commercial 05 Jun 23

Time limits most commonly missed in relation to contributions.

Contracts limitations

Conveyancing, Tax, GST, Leases, Personal Properties Securities, Sale and Purchase of Business, Building and Construction, Mortgages, Personal Properties Securities, Commercial 05 Jun 23

Time limits most commonly missed in relation to contracts.

Appeals limitations

Conveyancing, Tax, GST, Leases, Building and Construction, Personal Properties Securities, Sale and Purchase of Business, GST, Building and Construction, Property settlements, Estate Administration, Mortgages, Personal Properties Securities, Personal Injury, Commercial 05 Jun 23

Time limits most commonly missed in relation to appeals, a claim example and lessons learned.

Instruments limitations

Conveyancing, Tax, GST, Leases, Personal Properties Securities, Sale and Purchase of Business, Building and Construction, Mortgages, Personal Properties Securities, Commercial 05 Jun 23

Time limits most commonly missed in relation to instruments, a claim example and lesson learned.

Superannuation checklist

Conveyancing, Professional Responsibility, Will Making, Mortgages 17 Jan 23

This checklist is designed to help practitioners avoid common mistakes when acting in superannuation matters. Practitioners may find it helpful to use it alongside our Superannuation practice risk guide

Practice Risk Guides

Superannuation — LPLC Practice Risk Guide

Conveyancing, Financial Agreements, Will Making, Mortgages, Professional Responsibility 14 Dec 22

This LPLC Practice Risk Guide focuses on helping practitioners to avoid the types of claims relating to superannuation matters that arise in family law, wills and estates and property work. In all areas simple oversight is the most common cause of claims.

Client Resources

Parent to child property loans: Things to consider - Client Brochure

Conveyancing, Will Making, Mortgages, Client resources 22 Jun 22

This brochure is provided by LPLC as a template for lawyers to use for client information purposes. The brochure outlines what your clients should consider when they are planning to provide financial assistance to their child for the purpose of buying a home. Firms can use the sample brochure as it is, or use the word version to tailor the wording to suit their needs or create their own branded brochure.

Acting for private lenders

Mortgages 19 Jul 21

This checklist will help practitioners avoid the most common claims when acting for private lenders. The items in this checklist are the minimum requirements which would usually apply when acting for a lender regardless of whether the loan is one off or for a more experienced private lender.

Practice Risk Guides

Managing mortgage risk

Conveyancing, Mortgages 28 Aug 20

This LPLC Practice Risk Guide guide examines the risks involved in acting for lenders, borrowers and guarantors.

Acting for lenders checklist

Mortgages 28 Aug 20

A checklist to help legal practitoner manage risk in lending matters.

Solicitors certificates for borrowers or third party guarantors checklist

Mortgages, Solicitors Certificates 28 Aug 20

A checklist to help legal practitioners manage risk in mortgage matters.

Advice on equity release products

Mortgages 19 Aug 20

A checklist designed to prompt practitioners to consider the many dimensions of equity release transactions.

Practice Risk Guides

Superannuation — LPLC Practice Risk Guide

Conveyancing, Financial Agreements, Will Making, Mortgages, Professional Responsibility 14 Dec 22

This LPLC Practice Risk Guide focuses on helping practitioners to avoid the types of claims relating to superannuation matters that arise in family law, wills and estates and property work. In all areas simple oversight is the most common cause of claims.

Practice Risk Guides

Managing mortgage risk

Conveyancing, Mortgages 28 Aug 20

This LPLC Practice Risk Guide guide examines the risks involved in acting for lenders, borrowers and guarantors.

Tax limitations

Conveyancing, Tax, GST, Leases, Personal Properties Securities, Sale and Purchase of Business, Building and Construction, Will Making, Powers of Attorney, Beneficiaries, Mortgages, Commercial 05 Jun 23

Time limits most commonly missed in relation to tax.

Bankruptcy limitations

Conveyancing, Tax, Leases, Personal Properties Securities, Sale and Purchase of Business, Building and Construction, Will Making, Beneficiaries, Mortgages, Personal Properties Securities, Solicitors Certificates, Personal Injury, Commercial 05 Jun 23

Time limits most commonly missed in relation to bankruptcy.

Contribution limitations

Conveyancing, Tax, GST, Leases, Sale and Purchase of Business, Building and Construction, Mortgages, Personal Injury, Commercial 05 Jun 23

Time limits most commonly missed in relation to contributions.

Contracts limitations

Conveyancing, Tax, GST, Leases, Personal Properties Securities, Sale and Purchase of Business, Building and Construction, Mortgages, Personal Properties Securities, Commercial 05 Jun 23

Time limits most commonly missed in relation to contracts.

Appeals limitations

Conveyancing, Tax, GST, Leases, Building and Construction, Personal Properties Securities, Sale and Purchase of Business, GST, Building and Construction, Property settlements, Estate Administration, Mortgages, Personal Properties Securities, Personal Injury, Commercial 05 Jun 23

Time limits most commonly missed in relation to appeals, a claim example and lessons learned.

Instruments limitations

Conveyancing, Tax, GST, Leases, Personal Properties Securities, Sale and Purchase of Business, Building and Construction, Mortgages, Personal Properties Securities, Commercial 05 Jun 23

Time limits most commonly missed in relation to instruments, a claim example and lesson learned.

Superannuation checklist

Conveyancing, Professional Responsibility, Will Making, Mortgages 17 Jan 23

This checklist is designed to help practitioners avoid common mistakes when acting in superannuation matters. Practitioners may find it helpful to use it alongside our Superannuation practice risk guide

Acting for private lenders

Mortgages 19 Jul 21

This checklist will help practitioners avoid the most common claims when acting for private lenders. The items in this checklist are the minimum requirements which would usually apply when acting for a lender regardless of whether the loan is one off or for a more experienced private lender.

Acting for lenders checklist

Mortgages 28 Aug 20

A checklist to help legal practitoner manage risk in lending matters.

Solicitors certificates for borrowers or third party guarantors checklist

Mortgages, Solicitors Certificates 28 Aug 20

A checklist to help legal practitioners manage risk in mortgage matters.

Advice on equity release products

Mortgages 19 Aug 20

A checklist designed to prompt practitioners to consider the many dimensions of equity release transactions.

Windfall Gains Tax is here — Understand it and act now

Conveyancing, Tax, Mortgages 17 Nov 22

Windfall Gains Tax (WGT) affects lawyers with clients buying, selling or developing land re-zoned from 1 July 2023. This includes not just conveyancers, but those working in property development, lending, family, commercial and other areas of law.

Private lending — Do the basics well

Engagement/retainer management, Mortgages 27 Oct 22

In this webinar Phil Nolan discusses some of the traps we see for practitioners doing private lending work. He also identifies ways to avoid problems and necessary steps for good practice in this type of work.

Risks of acting for private lenders

Mortgages 27 May 21

This webinar looks at common mistakes and lessons for practitioners in anticipation of increases in private lending, difficult financial times ahead and an uncertain property market.

Securing the risks in mortgage matters

Mortgages 01 Jul 18

Seminar from 2018's Risk Management Intensive. Presented by Matthew Rose, Risk Manager, LPLC.

Ensuring adequate security for loans

Mortgages, Professional Responsibility 02 Mar 16

Many claims by lender clients have involved allegations the practitioner failed to properly deal with the issue of security.