Indefeasibility and the Forged Mortgage

Abstract

At common law a forged mortgage is ineffectual, even if the mortgagee acted in good faith throughout. In New Zealand mortgages of land can be registered and, upon registration, the mortgagee obtains a title to that mortgage that is indefeasible (i.e. immune from adverse claim). This article reviews the then leading cases to question the then orthodox understanding that registration validates the mortgagor’s covenant (promise) to pay.