National Mortgage

Form version 1.5

Instructions for using the form is available on the ARNECC website.

Dealing type –

M (Mortgage of Fee Simple or Perpetual Lease)

ML (mortgage of lease)

SM (mortgage of mortgage)

MC (mortgage of charge)

Stamp duty – Not Required

Certificate of Title - required. Also required for the servient tenement where an easement is being created by the mortgage.

Not required for a Mortgage of Lease (ML), Mortgage of Mortgage (SM) or a Mortgage of Charge (MC)

NOS form - not required

Standard form of Caveat:

Mortgage - prevents registration.

Mortgage of Lease/Mortgage or Charge - prevents registration if the caveat is drawn against the mortgage, lease or charge.

Priority Notice noted on the Register - see Priority Notice page.

Note  Electronic lodgment is mandatory for all transactions involving only stand-alone Discharges of Mortgage & Mortgages signed on or after 1 March 2017 or combination of Discharges of Mortgage & Mortgages where all the mortgagees are Authorised Deposit-Taking Institutions (ADIs) and the dealings are signed on or after 1 August 2017. 

Electronic lodgment is mandatory for all transactions involving only standalone Discharges of Mortgage & Mortgages or combination of Discharges of Mortgage & Mortgages by all mortgagees signed on or after 1 July 2018

Where transactions involving only Discharges of Mortgages and Mortgages and the mortgagees are excluded from electronic lodgment or circumstances allow the Registrar General to waive electronic lodgment under Conveyancing Rule 8.2, the incoming dealings must be accompanied with the form indicating the exemption. The Conveyancing Rules Exceptions form will be scanned with the dealing.

A dealing lodged in paper accompanied by a caveator’s consent or other supporting documentation may be accepted without a Conveyancing Rules Exceptions form.

A Mortgage cannot be recorded on the common property folio of a strata scheme (s. 32(4) Strata Schemes Development Act 2015).

The dealing must not include any reference to the mortgagor or mortgagee being a trustee, executor or administrator for another party.

Minister's consent is required:

  • where so specified in the restrictions notification on the Torrens Title Register or
  • where a Crown land restriction pursuant to s102 Crown Lands Act 1989 is noted on the Torrens Title Register. 

See Greg Stilianou, Land Titling Law and Practice in NSW, Lawbook Co. 2013 re:

  • introduction to the mortgage transaction [4.30]
  • mortgages of Torrens Title land and Old System land [4.40]. 

The Lodger Details must be completed. NSW LRS Customer account holders must provide the Lodger Code.

The reference shown on each page of the dealing must be identical to the reference shown at Lodger Details. All pages attached must be related to the dealing.

Note: For return of the original mortgage the Lodger Details including name, address and/or lodger box details may be completed manually after printing.

The Jurisdiction must be New South Wales.

Select the Lodgement type and apply.

The estate and/or interest being mortgaged must be selected or inserted.

  • Where an interest (Lease or Mortgage) is affected the dealing number must be stated after the interest.

    In the case of a mortgage of lease affecting a lease folio, the number of the lease folio only must be stated in the reference to title

    A lease must still be current regardless of any options.
The reference to title for the land affected by the mortgage must be stated.
  • Where part of the land is affected the land description must be stated.

A mortgage affecting part of a current lot, e.g. a mortgage of 'part of the land formerly comprised in ...', will not be accepted unless a mortgage is already registered to the same mortgagee affecting the remainder of the land in the title.

Where the mortgage is creating an easement, enter the reference to title for the servient tenement in ITS. See s56(4) Real Property Act 1900; Baalman And Wells, Land Titles Office Practice, Lawbook Co. 2001 [385.300].

The full name of the mortgagor must be stated and must be identical to the name of the registered proprietor or the name of the lessee, mortgagee or chargee as shown on the Register. The mortgage may be for a share or interest only.

Note: Where a mortgage is only as regards the interest of a joint tenant, the mortgage is extinguished if the joint tenant dies. A Request form 11R to remove the mortgage may be lodged following the Notice Of Death form 02ND.

Where other mortgages, leases, charges, and/or covenant charges are lodged together with the mortgage, the priority of registration will be based on the order of presentation, or an accompanying letter by the party ceding priority must set out the order of registration.

The full name of the mortgagee must be stated.

Tenancy/shares must be stated where there is more than one mortgagee. Reference to the tenancy/shares will not be entered on the Torrens Title Register.

Document Reference panel. The relevant memorandum must be specified. 

Additional terms and conditions may be added to up to 4000 characters or can be referred to an annexure. Any annexure must be identified as such. Each page must be numbered. The first and last pages and any alterations or additions must be signed by all parties.

Execution requirements for National Mortgage 

Execution by the mortgagor and the mortgagee and witnessed.

PARTY TO MORTGAGE 
WHO MAY EXECUTE MORTGAGE? 
DOES SIGNATURE HAVE TO BE WITNESSED? 
WHO MAY BE THE WITNESS? 

Mortgagor

The Mortgagor
(individual).

Yes 

An “eligible witness”, namely a person who:

  1. is over 18 years of age;
  2. is not a party to the mortgage; and 
  3. has either known the person who is signing the mortgage for more than 12 months or have sighted identifying documentation signed this mortgage in his presence.
See s117(4) Real Property Act 1900 (NSW).

The full name and address of the witness should be stated. (A PO Box or DX is not acceptable).


The Mortgagor
(corporation). 

 Depends on the method of execution. 

Depends on the method of execution.

If a corporation executes a mortgage with a common seal, the affixing of the seal must be witnessed by: 

  1. 2 directors; or 
  2. a director and a company secretary; or
  3. for a proprietary company that has a sole director who is also the sole company secretary - that director.
  4. for a sole person company that Sole Director.

Other methods of execution authorised by a corporation's constitution or special resolution may require additional evidence to support the authority. 


An attorney (individual) on behalf of the Mortgagor. 
Yes
An eligible witness 

An attorney (corporation) on behalf of the Mortgagor. 
Yes 
Same as for a Mortgagor who is a corporation. 

Authorised Officer on behalf of the mortgagor
Yes
An eligible witness

Mortgagee

The Mortgagee
(individual).

Yes

An eligible witness


The Mortgagee
(corporation).
Depends on the method of execution. 
Same as for a Mortgagor who is a corporation. 

An attorney (individual) on behalf of the Mortgagee. 
YesAn eligible witness. 

An attorney (corporation) on behalf of the Mortgagee.
Depends on the method of execution. 
Same as for a Mortgagor who is a corporation. 

Authorised Officer on behalf of the mortgagee
YesAn eligible witness.

An Australian Legal Practitioner 
No-

A Licensed Conveyancer. 
No-

Required Schedule 3 Certification Rules (of the NSW Participation Rules) for mortgagee.

Where the mortgagor and mortgagee executes the Mortgage:

Execution by the mortgagee:

  • on their own behalf or by an attorney or by an authorised officer - Rules 3,4,& 5a
  • by a representative such as an Australian Legal Practitioner or Licenced Conveyancer – Rules 1,2,3,4 & 5a

Where the execution is by the mortgagee only.

The mortgage may be executed by the mortgagee only or their representative with the appropriate certifications.

  • on their own behalf or by an attorney or by an authorised officer - Rules 3,4,& 5
  • by a representative such as an Australian Legal Practitioner or Licenced Conveyancer – Rules 1,2,3,4 & 5 

Execution by mortgagee representative. (Effective from 1 August 2017)

Australian legal practitioners, law practices and licensed conveyancers, who act for mortgagees, must complete a client authorisation form which is available on the ARNECC website. The form is not required for lodgement of the NMF with NSW LRS.

https://www.arnecc.gov.au/publications/forms

Staff processing information mortgage

Where paper transactions involving only Discharges of Mortgage and Mortgages where all mortgagees are ADIs are lodged without a Conveyancing Rules Exceptions form, the dealings must be accepted and a requisition raised. A dealing lodged in paper accompanied by a caveator’s consent or other supporting documentation may be accepted without a Conveyancing Rules Exceptions form

If in order proceed with registration except for the following.

Refer to the Team Leader

Where a sole first mortgage affects a computer title that does not have a Certificate Authentication Code (CAC).

Refer to SM99

Where the mortgage appears to create an easement.

Refer to SD6

A mortgage involving:

  • an Aboriginal Association or corporation
  • the NSW/Local Aboriginal Land Council.

Refer to Legal through the Senior Examining Officer

A mortgage:

  • where there is doubt as to the corporate status of the mortgagee
  • noted on a common property of a Strata scheme or the Association property of a Community Title scheme.

Registration procedure

PRIME CODE    M (where no mortgagee code exists)

MA etc (where a mortgagee code exists in ITS)

CODE (name)    P, C or Q where Prime Code M is selected  [name of mortgagee].

Affecting the share/interest of a registered proprietor

DETAILS    As Regards The Share/Interest Of [name of mortgagor].

Staff processing information mortgage of lease/mortgage or charge

If in order proceed with registration except for the following.

Refer to SD2

A mortgage of lease affecting a title held or managed by SD2.

Refer to Legal through the Senior Examining Officer

A mortgage:

  • of a lease for less than the full term of the lease
  • where there is doubt as to the corporate status of the mortgagee
  • affecting a Book and No. lease accompanied by evidence of devolution of the lease.

Registration procedure

Mortgage of lease or mortgage

PRIME CODE code of lease or mortgage as shown on the Register

PRIME NO.  number of lease or mortgage

SUB CODE

ULM (lease)

UMM (mortgage)

CODE (name)    P, C or Q  [name of mortgagee].

Mortgage of charge

DEALING TYPE  MC

PRIME CODE  code of charge as shown on the Register

PRIME NO.  number of charge

SUB CODE  UA

DETAILS  Mortgage Of Charge To [name of mortgagee].

Affecting a Book and No. lease with satisfactory evidence of devolution

ADD. TRANSACTION  UNDR

PRIME CODE   code of lease as shown on the Register

PRIME NUMBER    number of lease

SUB-CODE    ULD  (Devolution Of Lease).

Further information on mortgage of lease/mortgage or charge

A mortgage of more than one lease, mortgage or charge involving the same mortgagor (e.g. the same lessee) and mortgagee is a multiple instrument. See Fees page.

A mortgage of lease affecting a lease carried forward as a subsisting interest, i.e. 'Bk ... No. ... Lease To ...' must either:

  • be registered as a deed in the General Register of Deeds and a Request form 11R together with an Old System search showing the party entitled to deal with the lease must be lodged to record the interest. A change in proprietorship must be registered in the General Register of Deeds. See Baalman And Wells, Land Titles Office Practice, Lawbook Co. 2001 [390.100]. Note  The Mortgage of Lease form 05ML cannot be registered in this instance or
  • be accompanied by:
    - an Old System search of the leasehold title and
    - a statutory declaration made by the person who undertook the Old System search of the leasehold title stating:
    - their qualification
    - that he or she has inspected all deeds since the leasehold title was created to the present time
    - the registered Book and No. and type of all instruments inspected to show the leasehold title has not expired and
    - the registered Book and No. and type of all instruments to which the leasehold estate is subject.

A notification (code ULD): 'Devolution of Lease' is entered in the Second Schedule and all further transactions affecting the lease may be lodged on a Real Property Act form and do not require further evidence of devolution.

Refer to Legal through the Senior Examining Officer in both instances.