Expertise Areas Media & Enterainment To view this document you will need to download a copy of Adobe Acrobat . Order in the land of indefeasible mortgages has been restored In a decision released in September 2011, the High Court ruled that a mortgagee cannot exercise its power of sale under the mortgage if the Family Court has subsequently made an interim occupation order under the Property (Relationships) Act. That ruling had significant consequences for mortgagees, and was appealed to the Court of Appeal. In a succinct judgment released last month, the Court of Appeal held that the Property (Relationships) Act does not prevent a mortgagee from exercising its powers of sale under the mortgage except in very limited circumstances, and ruled that the High Court should not have imposed conditions on the power of sale. Facts DB was the registered proprietor of a house, with a mortgage granted in favour of ASB. DB was in a de facto relationship with SM, but the two subsequently split. SM made a claim for a share of the house under the Property (Relationships) Act. She registered a notice of claim of interest on the title of the property, and obtained an order from the Family Court allowing her to continue to occupy the property. DB was required to continue paying the mortgage. However, he later defaulted. ASB issued PLA notices and entered into an agreement for sale and purchase with a third party pursuant to its power of sale. ASB then applied