Part 11 Miscellaneous

If the interest of a unit owner is subject to a mortgage, the owner may take out 1 or more policies of insurance (a mortgage insurance policy) for indemnity against liability under the mortgage arising out of damage to, or destruction of, the unit.

(1) If a mortgage insurance policy is in force for a unit, the insurer is liable to pay to a mortgagee whose interest is noted on the policy the least of the following amounts:

(a) the amount insured as stated in the policy;

(b) the amount of the loss;

(c) the amount sufficient, at the date of the loss, to discharge the mortgage noted on the policy.

(2) If the interests of 2 or more mortgagees are noted on the policy, subsection (1) applies to the mortgagees in their order of registered priority.

(1) Payment by the insurer to a mortgagee under section 143 does not entitle the unit owner to a discharge of the mortgage.

(2) On payment by the insurer to a mortgagee under section 143—

(a) if the amount paid equals the amount necessary to discharge the mortgage—the insurer is entitled to obtain from the mortgagee a transfer of the mortgage; or

(b) if the amount paid is less than the amount necessary to discharge the mortgage—the insurer is entitled to obtain from the mortgagee a transfer of an undivided share of the mortgagee’s interest in the mortgage that bears to that interest the same proportion as the amount paid bears to the amount that was owing under the mortgage immediately before the payment.

(1) The Minister may determine fees for this Act (other than fees that this Act provides are to be fixed by an owners corporation).

(2) A determination is a disallowable instrument.

(1) The Minister may approve forms for this Act.

(2) If the Minister approves a form for a particular purpose, the approved form must be used for that purpose.

(3) An approved form is a notifiable instrument.

(1) The Executive may make regulations for this Act.

(2) A regulation may—

(a) exempt a units plan from the application of a provision of this Act; or

(b) for schedule 3, section 3.31A (Alternative voting mechanism)—prescribe or prohibit a method or process that may be agreed by an owners corporation for voting on a matter.

Note Power to make a statutory instrument (including a regulation) includes power to make different provision in relation to different matters or different classes of matters, and to make an instrument that applies differently by reference to stated exceptions or factors (see Legislation Act, s 48).

(3) A regulation may create offences and fix maximum penalties of not more than 60 penalty units for the offences.