In the current economic climate, it is appropriate to remind financial services providers who may be exercising their rights to take possession of and sell secured assets, of guidance and comments that we have provided about a mortgagee’s duty and aspects of mortgagee sales. The guidance and comments are set out in Bulletin 38 issued in June 2003.
It is well settled law and practice that a mortgagee in possession is required to advertise a mortgaged property for sale.
Bulletin 38 indicates that an advertising campaign should include print advertisements in local, regional or state-wide newspapers, specialised real estate magazines and agents’
franchised publications. However, we acknowledge that internet listings have become an acceptable and widely used medium by which estate agents promote a property for sale and potential purchasers search for available properties within their buying criteria. Internet listings are also available at a price substantially less than the cost of print advertising.
Therefore, we accept that advertising on a well known and well regarded Australian real estate sales website may be an acceptable alternative to advertising in a local, regional or state-wide newspaper. However, for remotely located properties not serviced by such websites, an advertising campaign in a local, regional or state-wide newspaper may still be required for a mortgagee to discharge its obligation to advertise the property for sale.
Approach to complaints that are “frivolous, vexatious
Under clause 16 of the Investments, Life Insurance & Superannuation Terms of Reference, a dispute can be dismissed if it is frivolous, vexatious or lacking in substance.
The guidelines on when a dispute may be dismissed on this basis have been revised and updated to include recent rulings by the Investments, Life Insurance & Superannuation Panel Chair on this issue. The revisions are intended to keep the guideline up to date, and do not reflect any change to current practice.
The revised Guidelines ("Guideline 1") explain how we approach the question of whether a dispute is “frivolous, vexatious or lacking in substance” and the procedure for dismissing a dispute on this basis. They also include summaries of cases that have been dismissed, to help explain how this issue has been considered in practice.