Property Law Reforms - Are You Prepared?

Article by Helen Fielder, Nino Di Bartolomeo and Alison Deitz

The Real Property and Conveyancing Legislation Amendment Bill 2009 (the Bill) was passed last week by both houses of Parliament in New South Wales. It is expected that the Bill will be proclaimed very shortly. It's implementation will affect the execution of all mortgages in New South Wales.

The Bill makes a number of significant reforms in the property area that are designed to combat identity fraud, protect the Torrens Assurance fund from predominantly fraudulent claims and to impose a duty on mortgagees when exercising a power of sale.

The reforms that will apply on assent relate to the reaffirming of the principle of indefeasibility of title contained in section 42 of the Real Property Act 1900 (RPA) and the limitation on the circumstances and amounts recoverable from the Torrens Assurance Fund.