Mortgage priority (Form 30)

Registered instruments have priority according to when they were lodged, not when they were signed (Land Title Act 1994 (Qld) s 178). Section 77 lets the priority of registered mortgages be changed by registering an instrument amending priority, which must specify the order of priority of all affected registered mortgages and be executed by all mortgagees affected; once registered, the mortgages rank in the order it specifies. Form 30 is that instrument. The 'grantor' is the mortgagee whose mortgage is being postponed and the 'grantee' is the mortgagee receiving priority (Land Title Practice Manual (LTPM) [30-2010]).

When you need it

• A new lender requires its mortgage to rank ahead of an existing registered mortgage, and the existing mortgagee agrees to be postponed.
• Two or more mortgagees are agreeing to postpone their mortgages in favour of another; one Form 30 can cover them if the same title or group of titles is affected by all the mortgages (LTPM [30-2020]).
• The mortgages are registered. Priority between registered mortgages otherwise follows the order of lodgement.

1. 1

   Lodger panel and Item 1: priority particulars

   Complete the lodger details. In Item 1 insert the dealing number of the mortgage being postponed and of the mortgage receiving priority. Both numbers appear on a current title search.

2. 2

   Item 2: consequent order of priority

   List the dealing numbers in the new order of priority, covering all the affected registered mortgages (s 77(2)(a)).

3. 3

   Item 3: land

   Insert the lot on plan description, with its plan prefix, and the title reference.

4. 4

   Items 4 and 5: grantor and grantee

   Item 4 is the full name of the mortgagee of the mortgage being postponed (grantor). Item 5 is the full name of the mortgagee of the mortgage receiving priority (grantee).

5. 5

   Item 6: request and execution

   The grantor and the grantee each sign and date. Individuals sign before a witness listed in Schedule 1 of the Land Title Act 1994; companies sign as the law permits. Where several mortgages are postponed, the grantee signs separately with each grantor, in order, usually on a Form 20 Schedule (LTPM [30-2020]).

• No duty notation is required (LTPM [30-4070]). A lodgement fee applies; check it with the Titles Queensland fee calculator.
• Lodge by post to Titles Queensland, GPO Box 1401, Brisbane Qld 4001, or through eLodgement if you are a registered industry user. Form 30 is not on Titles Queensland's list of instruments available through eConveyancing.
• On registration the mortgages have priority in the order shown in Item 2 (s 77(3)).
• Lodge it in the right order with any related dealings, such as the new mortgage, since instruments are registered in the order they are lodged (s 177).

• Item 2 must show the order of priority of all affected registered mortgages, not just the two being swapped.
• If two mortgages are postponed, the correct execution order is: first postponing mortgagee, the mortgagee receiving priority, second postponing mortgagee, then the mortgagee receiving priority again (LTPM [30-2020]).