Mortgage Repossessions - Rural Land

In a standard mortgage repossession not involving rural land, a 57(2)(b) Notice is issued under the Real Property Act, giving the debtor 31 days to satisfy this notice. If this notice is not satisfied, you can then commence proceedings in the Supreme Court.

However, if the loan is for acreage and the land is used for farming purposes then the Farm Mediation act also applies. 

This imposes several more compliance obligations on the lender. Once your Section 80 notice has been issued and expired, several notices must be served on all parties to the mortgage under the Farm Mediation Act.

After waiting 21 days you can then issue a 57(2)B notice and proceed as normal.

However should 1 of the debtors reply then mediation must happen with a mediator registered under the NSW Rural Assistance Authority.

If agreement is not reached then the Mediator issues a certificate allowing action to continue.

If agreement is reached then the mediator writes a head of agreement with is signed by both parties.

If this agreement is not kept then back to section 80 or apply to the mediator for a certificate allowing action to continue.