In Morris Finance Ltd v Free [2017] NSWSC 1417, Morris Finance applied for an order for judicial sale of a property over which another party held the first mortgage. Morris Finance argued it had the benefit of an equitable charge over the land which secured unpaid moneys in a commercial lease agreement granted by the registered proprietor. In considering whether there was an equitable charge, Ward J agreed with recent cases from Victoria, in which it was stated by the Victorian Supreme Court that in Australia there is neither a required form for an equitable charge, nor a requirement to include a precise definition of the property over which the charge attaches. Despite the broad wording in the lease agreement, the Court found that Morris Finance did have an equitable charge over the land. The default under the lease was not contested, meaning the equitable charge was enforceable to recoup the money owing to Morris Finance. The first mortgagee did not object to the making of a court order for sale of the property, and the order was duly made.

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