Process for Registering a Second Mortgage - NT

NORTHERN TERRITORY

The Northern Territory has very similar laws as Queensland to the effect that the consent of the first mortgagee is not required, the first mortgagee cannot treat the registration of the second mortgage as a default.

The difference between QLD and NT is that the NT is not a subscriber to PEXA and there are still paper certificates of title in the NT. This means that only paper lodgements can be made in the NT, and if there is a certificate of title on issue, you will need to contact the first mortgagee to have it produced at the land titles office. Luckily, they cannot refuse or treat it as a default.

NT Law Therefore Requires Some Unique Considerations by Lenders:
As a Second Mortgagee:

You are not required to obtain the consent of the first mortgagee and can simply lodge your second mortgage in paper form or via PEXA without contacting the first mortgagee and without fear of default.
A deed of priority is not required unless you wish to increase your protection from that afforded in the NT Act

As a First Mortgagee:

You cannot stop the registration of a second mortgage, treat it as a default or demand a deed of priority.
A second mortgage could be lodged without any notice to you.
You may be forced to exercise power of sale if the second mortgagee will not discharge their mortgage on a sale of the property by the borrower.

Please be advised this is general information only, and is not to be taken as legal advice. If you would like more information, or have a legal query, please contact Abbott & Mourly directly.
Reviewed: 17/01/2024