Christine, thank you, your post raises some very important points about due diligence. It is paramount that each Participant in the Workspace check the Land Titles screen very regularly (tip: review Participants and Land Titles screen every time entering a Workspace). In your example, registration of the Mortgage was flagged on the Land Titles screen with a positive Title Activity Check. Following a positive TAC, an information resupply would be performed which would then surface refreshed data from the Titles office noting the newly registered Mortgage. It is a matter for the Participants to ensure the Mortgagee on Title has been invited in to the Workspace to provide the payout figure and/or Release. We note there are also warnings in the Workspace to advise Participants that there is an encumbrance on title, and will not be Transferred with clear title.
Titles QLD has provided the following information “ in QLD a property the subject of a Mortgage can be transferred to a purchaser who then takes the property subject to that Mortgage. A transfer of this nature would register without requisition from the Titles QLD – Section 63(1) Land Titles Act 1994.”
Please reach out for further information.
Kind regards, Catherine
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Thank you for your post. We will follow up with Titles QLD and reply here.
I am aware of a matter where a purchase has occured where when the matter was entered into PEXA it was clear title.
Prior to settlement a mortgage had been registered on the QLD property by the Vendors with an FI.
Purchase was settled with vendors mortgage still in place
FI only identified this had occured when Vendors questioned why their liability had not been repaid at settlement with the existing FI
FI contacted practitioner who had not investigated recent title activity prior to settlement ( new mortgage registered)
Has anyone encountered this issue previously, should the matter have been requisitioned by Queensland Titles, given there was a mortgagors where the Vendors and no longer a party to the property?
Would appreciate feedback on identifying gaps and processes to ensure the gaps are captured.
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