111ADuties of mortgagees and chargees in respect of sale price of land

#### 111A Duties of mortgagees and chargees in respect of sale price of land 111A Duties of mortgagees and chargees in respect of sale price of land > > (1) A mortgagee or chargee, in exercising a power of sale in respect of mortgaged or charged land, must take reasonable care to ensure that the land is sold for— > > > > > (a) if the land has an ascertainable market value when it is sold—not less than its market value, or > > > > > (b) in any other case—the best price that may reasonably be obtained in the circumstances. > > > (2) Subsection (1) applies to an agent appointed by a mortgagee or chargee to sell the mortgaged or charged land in the same way as it applies to a mortgagee or chargee exercising a power of sale in respect of mortgaged or charged land. > > > (3) Nothing in section 112(7) or 115(2) of this Act, or in section 58(1) of the [Real Property Act 1900](/view/html/inforce/current/act-1900-025), affects the duty imposed by this section. > > > (4) The title of the purchaser cannot be challenged on the ground that the mortgagee or chargee has committed a breach of any duty imposed by this section, but a person who suffers loss or damage as a result of the breach of the duty has a remedy in damages against the mortgagee or chargee exercising the power of sale or selling the land. > > > (5) This section has effect despite any stipulation to the contrary. > > > (6) Nothing in this section affects the operation of any rule of law relating to the duty of the mortgagee or chargee to account to the mortgagor or chargor. > > > (7) This section applies to mortgages and charges whether made before or after the commencement of this section but only in relation to a sale arising as a consequence of a default occurring after the commencement of this section. > > > (8) This section extends to mortgages and charges under the [Real Property Act 1900](/view/html/inforce/current/act-1900-025). > > **s 111A:** Ins 2009 No 17, Sch 2 \[4\].