A mortgage broker's and solicitor's failure to verify the identity of a borrower, including failure to obtain a certified copy of a driver's licence as instructed, constitutes negligence but not fraud within s 184 of the Land Title Act 1994 (Qld) where there is no evidence of actual dishonesty or abstention from inquiry for fear of learning the truth. A registered mortgage operates as a statutory charge under s 74 of the LTA even where the express charging clause has been inadvertently ruled through, because s 73 does not require an express charging clause and s 78(1) of the Property Law Act 1974 (Qld) implies an obligation to repay. On redemption after the passing of the redemption date, the court will fix interest at an appropriate rate (here 10% per annum rather than the contractual 10% per month).
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