The Registrar-General may cancel the registration of a mortgage if:
(a) the person by or on whose behalf the mortgage was signed or executed as mortgagor (the purported mortgagor ) is not the registered proprietor of land subject to the mortgage; and
(b) the mortgagee:
(i) failed to comply with a requirement under this Act or the Electronic Conveyancing National Law (NT) to verify the purported mortgagor's identity or authority to enter into the mortgage; or
(ii) if the mortgage was transferred to the mortgagee – failed to comply with a requirement under this Act to establish that the transferor complied with an obligation imposed on the transferor, as mortgagee, to verify the purported mortgagor's identity or authority to enter into the mortgage.