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Immediate indefeasiblity for mortgagees: a moral hazard?
Journal article   Peer reviewed

Immediate indefeasiblity for mortgagees: a moral hazard?

Pamela A O'Connor
Bond Law Review, Vol.21(2), pp.133-158
2009
url
http://epublications.bond.edu.au/blr/vol21/iss2/8/View
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Abstract

Law
Since the global financial crisis of 2007, regulators and economists have analysed the moral hazards inherent in institutional arrangements which encouraged economic actors to act irresponsibly. The process of institutional reform must extend to review of legal rules which allow transacting parties to internalise gains and externalise losses. Of prime concern are rules of the Torrens System which allow mortgage lenders to omit reasonable precautions to ensure that the borrower is the registered owner, and shift the risk of losses through identity fraud to persons who are external to the transaction

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