VALUE OF LAND

Evening Post, Volume CXXV, Issue 100, 30 April 1938, Page 25

VALUE OF LAND

JUDGMENT UPHELD

MORTGAGEE'S: ESTIMATE

In a reserved judgment the Court of Appeal upheld the view of the; Chief Justice (Sir Michael Myers) that under the Land Transfer Act, 1915, there was no duty upon a mortgagee, when making application to the Registrar of the Supreme Court to conduct a sale, to do more than state his estimate of the value of the land. The case was one in which the Wellington City Corporation was the appellant and the Government Insurance Commissioner, on behalf of the Crown as mortgagee of certain land in Wellington, the respondent.

The judgment stated that the appellant was interested 'in the amount to be realised at the mortgagee's sale, ( because there was owing to it a very' substantial sum for rates. It was plain that the Act went far to ensure that; the mortgagee would not without good reason touching- the value of his security risk estimate a lesser sum than the amount of the mortgage debt and costs. Looking at the Act itself it vvas not possible to read into it an implication of any duty upon the mortgagee, in making his estimate, to do more than state his estimate. The 1905 amendment to the Act compelled the mortgagee to fix such an •estimate as made ■ him run the risk of the mortgagor, by himself or with the help of some of his friends, redeeming the property at the estimated price. If the mortgagee bought in he must give credit to the mortgagor for not less than the estimate. It was highly pr.o"bable in the present case that the mortgagee's estimate, £12,000, represented the mortgage debt plus* co_sts, and it was only £3200 less than-the Government, .value. V.i The: appellant had | overlooked the point -thatvtliet lower; flic estimate.the ■ easier.Jit;. was> for the, mortgagor to redeem. The. Court read' the Statute as meaning.an estimate'of the value of the property: to the mortgagor himself. : The view, taken by .the" Court was that the sum to be stated as .the value.'at which' the■< mortgagee estimated the land to beisolct/-was' ;suchj •su^Aas''the-^brigagefe'---ftiau:gh.i-fl^-l! i

: The- judgment ;■•was;-delrv ] eredi;t>y;; Mr,Justice,Blair. vAt;;the hearing Ilie City) Solicitor (Mr. >J: O'Shea)^ with",hiirf -Mr.: J. R. - Marshall,, -appeared -forthe: appellant, arid Mr. .R.,'Eii Harding, forj the respondent. ;,.-:,' .: ■'.; -' ': v ■ ■;:,"-•■' .■' I