A mortgagee relying on a standard-form solicitor's certificate not specifically designed for identity verification, together with deficient 100 point identification check documentation, does not take 'reasonable steps' under s 87A of the Transfer of Land Act 1958 (Vic). Reasonable steps require at minimum: (1) verification by photographic identification and comparison of likeness that the mortgagor is the registered proprietor; and (2) verification that the identified mortgagor is the person executing the mortgage. A mortgagee who fails to comply with s 87A cannot claim indemnity under s 110 because its neglect caused or substantially contributed to its loss. Separately, a specific personal covenant to pay a defined principal sum on a defined date has primacy over a standard form introductory paragraph referring to the sum 'lent or agreed to be lent to the mortgagor', and secures the amount even where funds were advanced to a third party.
The full text is available to signed-in members, including the 2 later cases that cite this judgment.