A transfer of a registered mortgage under s 52 of the Real Property Act 1900 (NSW) vests the debt secured by the mortgage in the transferee at law and in equity without need for notice under s 12 of the Conveyancing Act 1919 (NSW). However, such a transfer does not of its own force assign the benefit of a separate deed of guarantee not contained in the mortgage. Where a lender assigns the principal debt but not the guarantee, neither the assignor nor the assignee can sue on the guarantee. Practitioners arranging mortgage transfers must ensure separate guarantees are expressly assigned.
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