Daniel Pinti, Senior Associate
On 3 December 2008, the Queensland Parliament urgently passed
the Property Law (Mortgagor Protection) Amendment Bill 2008 (Qld)
which amends the Queensland Property Law Act 1974.
Purpose of the Bill
The objective of the Bill is to protect the interests of
mortgagors whose properties are sold by mortgagees when exercising
their power of sale. In particular, the Bill is concerned with the
duty imposed upon mortgagees to ensure that the property is sold at
market value. This Bill has been passed due to the overwhelming
concerns engendered by the current global economic and financial
circumstances that are being felt especially by financial
institutions and struggling homeowners. In Parliament, Anna Bligh,
Premier of Queensland stated that the amendments are to protect
mortgagors from "mortgagee fire sales" where mortgagees
intentionally sell the repossessed property below the market value
to reclaim enough money to cover their own
