12 August 2011
Through the compliance review process, we have seen a number of instances where an Authority and Instruction (A&I) form had not been obtained as evidence to act on behalf of a private mortgagee.
Practitioners have mistakenly relied upon executed Deeds of Settlement, letters of instruction from the private mortgagee or the private mortgagee’s solicitor.
An A&I form must be obtained in all instances where the mortgagee is a private individual or private corporate client. The A&I form is the practitioner’s evidence of authority to act and lodge the e-dealing, and ensures appropriate steps have been taken to verify the identity, capacity and bona fides of the mortgagee.
A letter of instruction is not acceptable as authority for a private mortgagee. It is only acceptable, for institutional mortgagees, such as banks and other lending institutions.