NTIn ForceAct
Law of Property Act 2000
99Order for foreclosure
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99 Order for foreclosure
(a) the Registrar-General has published a notice under
section 98(2) offering the property for sale by private contract;
(b) the date specified in the Registrar-General's notice has
passed; and
(c) the mortgaged property has not sold,
the mortgagee may apply to the Court for an order for foreclosure.
(2) Before making the order for foreclosure the Court must:
(a) be satisfied that:
(i) the mortgagor has defaulted in paying the principal
money or interest and the default has continued for at
least 6 months;
(ii) notice requiring payment of the amount that constitutes
the default has been served on the mortgagor in
accordance with section 89(1)(a);
(iii) the mortgagee has, within 2 years before making the
application to the Registrar-General under section 98(1),
exercised the mortgagee's power of sale and offered the
property for sale at public auction;
(iv) the amount of the highest bid at the auction was less
than the amount of money owing to the mortgagee and
the costs, charges and expenses incident to the sale;
(v) notice in writing of the mortgagee's intention to apply for
an order for foreclosure has been served on the
mortgagor and each person who has a registered
interest in the mortgaged property subsequent to the
interest of the mortgagee;
(vi) the Registrar-General has published a notice under
section 98(2) offering the property for sale by private
contract;
(vii) the date specified in the Registrar-General's notice has
passed; and
(viii) the mortgaged property has not sold;
Law of Property Act 2000 65
(b) determine the market value of the mortgaged property;
(c) determine the market value of each registered interest in the
mortgaged property that has priority to the interest of the
mortgagee; and
(d) determine the value of each registered interest in the
mortgaged property subsequent to the interest of the
mortgagee that represents the proportion that the value of that
interest is in relation to the amount of the market value of the
mortgaged property less the money owing to the mortgagee,
the amount of the market value of any prior registered
interests and the costs, charges and expenses of the
mortgagee in exercising the mortgagees right of foreclosure
and selling the property; and
(e) identify any other interests in the mortgaged property.
(3) On complying with subsection (2), the Court:
(a) may make the order for foreclosure; and
(b) if the Court makes the order for foreclosure:
(i) must make the orders it considers just to ensure that the
mortgagee will either pay to each person who has a
registered subsequent interest the amount representing
the value of the interest established by the Court under
subsection (2)(d) or offer the person security for the
repayment of that amount; and
(ii) must make the orders it considers just in relation to the
other interests in the mortgaged property and the
payment of the costs, charges and expenses of the
mortgagee in exercising the mortgage's right of
foreclosure.