Perils In Exercising Power Of Sale

In Sablebrook P/L v. Credit Union Australia [2008] QSC 242 the mortgagee breached section 85 of the Property Law Act 1974 by failing to take reasonable care to ensure the mortgage property was sold at market value.

Background

The mortgagee did not advertise the property for sale or list it with a real estate agent. The property was sold for $240,000. The mortgagee relied upon a valuation of $225,000 which was approximately 4½ months old at the date of the contract. At the time of the sale there was a rise in the market. No updated valuation opinion was obtained at the time of the sale.

There were issues concerning whether the swimming pool on the property encroached onto adjoining land. There was also a dispute involving the adjoining property owner who claimed a right of easement in respect of the swimming pool.