A mortgagee who is exercising the power of sale has a duty of good faith to the mortgagor.Which of the following statements most accurately reflects the extent of this duty under Australian common law?

Question

Quizplus · Accepted Answer

Under Australian common law, the mortgagee's duty of good faith to the mortgagor primarily means that the mortgagee must not act fraudulently, or recklessly sacrifice the interests of the mortgagor. There is no specific requirement to advertise through a licensed real estate agent or to take reasonable care to obtain a proper market price, although these actions might be part of acting in good faith in practical terms.

A Mortgagee Who Is Exercising the Power of Sale Has