In a decision with important ramifications for financial lending institutions, a verdict handed down last week by the Victorian County Court represents a resounding victory for the defendant, and Gold Coast based law firm, Marino Law.
Acting for the defendant, a victim of mortgage fraud in case C & F Nominees Mortgage Securities Ltd v Karbotli & Ors  VCC 987, Marino Law argued that the plaintiff, C & F Nominees Mortgage Securities Ltd had not taken reasonable steps to verify the identity of the supposed mortgagor.
Marino Law Special Counsel, Mark Steele said the outcome of this matter, which commenced approximately two years ago, has important ramifications for mortgagees who fail to take reasonable steps to verify the identity of the mortgagor, namely that the mortgage may be void.
“The ruling has significant consequences for lenders, who in similar situations, may lose their security and be out of pocket considerable sums advanced,” Mr Steele said.
In this case it was proven that the lender did not take reasonable steps to verify the identity of the elderly defendant, whose son had fraudulently signed her name on mortgage documents using her Queensland and Victorian properties as security against borrowings.
The lender relied upon a certificate from a solicitor who said he had interviewed the defendant, when in fact he had not.
Marino Law specialises in, litigation and dispute resolution, commercial and business law, property and real estate law, corporate law, personal and corporate insolvency, family law, migration law and estate and succession planning law.
For the case summary click here.