Application for the Variation of Order of Priority (A5)

Registered mortgages and encumbrances over the same land normally rank in the order they were registered (s 56(2) of the Real Property Act 1886 (SA)). Section 56(5) lets the Registrar-General, on application in the appropriate form, vary the order of priority between two or more registered mortgages or encumbrances. The application must be made by every holder whose priority is to change, with the consent of the mortgagor or encumbrancer, and with the consent of the holder of any mortgage or encumbrance that is being postponed (s 56(6)). The Registrar-General records the variation on the affected certificate of title (s 56(7)). Land Services SA uses the prefix AV for this dealing.

When you need it

• A new lender requires its mortgage to rank first ahead of an existing registered mortgage.
• Two lenders have agreed to swap the ranking of their mortgages or encumbrances.
• A mortgage being lodged at the same time must be given priority over an existing one.

1. 1

   Mortgage or encumbrance losing priority

   Identify the instrument being postponed by number, or by full description if it is being lodged at the same time, for example 'Mortgage dated ... from A to B lodged contemporaneously herewith'.

2. 2

   Land description

   List every affected certificate of title or Crown lease, for example 'Whole of the land in CT Volume ... Folio ...'.

3. 3

   Mortgagor or encumbrancer, and applicants

   Give the full name and current address of the mortgagor or encumbrancer, and of every mortgagee or encumbrancee whose instrument gains or loses priority. Do not list holders whose priority is not changing.

4. 4

   New order of priority

   List the mortgages or encumbrances by number in the order they are to rank, deleting 'mortgage' or 'encumbrance' as appropriate.

5. 5

   Consents and certification

   The mortgagor or encumbrancer signs the consent panel, and any holder of an intervening interest, such as a lease, also consents. Consents other than by common seal must be witnessed, but the guidance notes say they need not meet section 267. Complete the certification for each mortgagee or encumbrancee.

• A variation of priority is not on the mandatory electronic lodgement list, so it can be lodged in paper at Land Services SA, Level 9, 101 Grenfell Street, Adelaide, through the Face to Face or Drop and Go service.
• A registration fee applies. Check the current fee on Land Services SA's fees page.
• All panels must be completed or struck through, and every page numbered consecutively.

• If the mortgagor's or any mortgagee's name has changed, lodge an Application to Note Change/Correction of Name before the A5.
• Where the certifier is the mortgagee or an employee of a corporate mortgagee, the first two certifications (identity and client authorisation) do not apply.
• A self-represented party makes only the certifications about retaining evidence and the document being correct and compliant.