Broker guide
Mortgage Memorandum of Common Provisions Explained
A mortgage can refer to registered common provisions outside the signed form. Find the referenced document and distinguish it from the loan agreement.
- Published
- Updated
A mortgage memorandum of common provisions is a separate document containing terms incorporated into a mortgage by its document reference. The signed mortgage can be short because some of its terms sit in that referenced document. Before signing, match the reference on the mortgage to the provisions supplied with the pack.
Mortgage, Loan Agreement and Common Provisions
The loan agreement records the borrowing arrangement, while the mortgage gives the lender security over the specified interest in land. The memorandum supplies mortgage terms that the signed form incorporates. Read the documents together, keeping each document’s purpose distinct.
Landgate’s common-provisions guidance explains how a short mortgage incorporates a separate memorandum. The signed form identifies the transaction and the reference connects it to the additional terms.
A loan approval letter alone won’t identify every mortgage obligation. Commonwealth Bank’s consumer mortgage lending terms distinguish the loan contract from a security agreement, which includes incorporated provisions. That distinction helps a broker identify missing documents without interpreting a client’s legal obligations.
For example, Commonwealth Bank’s Mortgage and Security Provisions contain sections about property care and insurance, as well as default. The meaning and application of a particular clause belongs with the client’s legal adviser. A broker can locate the clause and send the complete documents with the question.
Find the Referenced Document
Start with the mortgage being signed and copy its reference exactly before searching for the memorandum. A lender’s name or a similar document title is insufficient to establish a match.
- Identify the mortgagee, meaning the lender or entity receiving the security. Use the legal name on the form.
- Identify the state or territory where the mortgaged land is registered. The relevant jurisdiction is shown on the mortgage form.
- Find the incorporated document reference in the terms and conditions panel. Record every letter and digit, including any prefix.
- Match that reference against the lender’s supplied provisions. Check the edition or version printed on the document and retain its complete pages.
The New South Wales mortgage form has separate fields for the document reference and additional terms. Review both fields when identifying the documents needed for the file.
Commonwealth Bank’s Mortgage and Security Provisions list different registry references for different jurisdictions. One booklet can therefore contain several reference numbers. Compare the entry for the property’s jurisdiction with the actual mortgage, rather than selecting the first number in the booklet.
If the provisions are missing, ask the lender’s document team for the complete document matching the mortgage reference. For an older mortgage, its referenced edition can differ from the lender’s latest website download. Ask the lender or conveyancer to obtain the relevant registry copy when that is needed to resolve the match.
Check the Signing Pack
Reconcile the supplied provisions with the mortgage before treating the signing pack as complete. Check that the parties and property match the transaction, then compare the incorporated reference and any additional terms.
Use these checks to separate a document issue from a question about legal effect.
| What you find | What to do | Result needed |
|---|---|---|
| The referenced provisions are absent | Request the complete matching document from the lender | The client has the provisions identified by the mortgage |
| The supplied booklet shows a different reference | Send both references to the lender’s document team | Written confirmation of the correct pack or replacement documents |
| Pages or schedules are missing | Request a complete replacement copy | The document has all pages and referenced schedules |
| Additional terms appear inconsistent with the booklet | Send the complete pack and exact clause locations to the lender and legal adviser | The document issue is corrected and the client’s legal question is addressed |
In a hypothetical file, a mortgage specifies one memorandum reference while the attached booklet shows another for the same jurisdiction. The matching lender logo doesn’t resolve the difference. Send the mortgage panel and booklet cover to the lender, and obtain the matching document or a corrected pack before arranging execution.
Keep the conveyancer informed if the issue affects settlement. Land Use Victoria’s mortgage guidance identifies mismatched memorandum references between granted and lodged mortgages as a certification problem. The lender and its legal representatives must resolve that issue in the documents used for lodgement.
Avoid editing a reference yourself to make the documents agree. Landgate’s mortgage preparation guidance requires mortgagors to acknowledge a handwritten addition of the memorandum number. Have the lender or conveyancer direct any correction and the execution steps it requires.
Keep the Executed Record
Retain the final mortgage and its matching incorporated provisions together so the file shows which terms accompanied execution. A link to a lender’s changing download page cannot preserve that edition.
Keep a record of these items in the client file.
- The complete executed mortgage, including additional terms and schedules.
- The matching memorandum, with its registry reference and edition details.
- The lender’s written resolution of any missing document or reference mismatch.
- Evidence of document delivery and the completed signing process, including witness details where required.
- The final replacement pack and any directions for re-execution if documents changed.
Record who resolved the discrepancy and when, with the relevant correspondence. Ask the conveyancer or lender to confirm any outstanding document correction before you mark the signing issue resolved. The file must identify the executed version without relying on someone’s memory or a later download.
