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It's obviously a relief that it is sorted out at least by knowing where the deeds are. If failure by the mortgagee bank to register is getting to be common, maybe then it will become normal practice in NSW for a solicitor for the Purchaser to chase up registration of the transfer when a...

Your solicitor has not done anything wrong. Indeed your solicitor has protected you by telling you to keep the caveat on. It is your lender's job to lodge the documents for registration.