2 Caveats on Property I just signed contract of sale

[Plantagenet]

Hi All,

I signed a contract of sale on a property subject to finance. I popped a $1000 deposit.

I was then informed by my broker that there are two caveats on the property which will need to be removed before settlement which is in 4 months.

The caveats are with Legal Aid and Melbourne Housing.

On the 8th of July however the vendor requires a 10% deposit.

My solicitor said they will be removed on settlement as the monies acquired through the purchase would be used to pay their interests.

Just wondering if I could get some advice from similar experiences.

Thanks

 

[Terry_w]

Hi All,

I signed a contract of sale on a property subject to finance. I popped a $1000 deposit.

I was then informed by my broker that there are two caveats on the property which will need to be removed before settlement which is in 4 months.

The caveats are with Legal Aid and Melbourne Housing.

On the 8th of July however the vendor requires a 10% deposit.

My solicitor said they will be removed on settlement as the monies acquired through the purchase would be used to pay their interests.

Just wondering if I could get some advice from similar experiences.

Thanks

This may or may not be true. What evidence does your lawyer have that this is the case - they may not have enough money. could be messy

Strange that your broker is telling you about the caveats and not your lawyer. They must have been listed after exchange - did you lodge a caveat and did your lawyer suggest you do so?

 

[Aaron_C]

Your solicitor is probably right. However, given that settlement is in 4 months you have to be careful since the vendor will have a right to the deposit moneys. See: http://www.austlii.edu.au/au/legis/vic/consol_act/sola1962100/s27.html

 

[Plantagenet]

Well I happened to speak with my broker before calling my solicitor, who in the end, already knew about the two caveats.

I'm a little lost when it comes to caveats. I understand that I should lodge one against the property. Especially before I hand over 10%. This is my fourth property purchase and have never done so in the past.

So how do I cover my interest and be confident that the caveats will removed before handing over the 10%? I know that Westpac wont settle with the caveats listed.

Scared to think that I pay the 10% now and in four months caveats are not removed and settlement doesnt go through. Geeze what happens then?

 

[Terry_w]

Well I happened to speak with my broker before calling my solicitor, who in the end, already knew about the two caveats.

I'm a little lost when it comes to caveats. I understand that I should lodge one against the property. Especially before I hand over 10%. This is my fourth property purchase and have never done so in the past.

So how do I cover my interest and be confident that the caveats will removed before handing over the 10%? I know that Westpac wont settle with the caveats listed.

Scared to think that I pay the 10% now and in four months caveats are not removed and settlement doesnt go through. Geeze what happens then?

You cannot be sure of settlement.

If it doesn't settle you can rescind and get your deposit back, subject to it not being released.

 

[Plantagenet]

Thanks Terry,

What if they do release the 10% deposit to the seller before settlement?

I will contact my solicitor and ask if I can pay the 10% deposit subject to it not being release before settlement?

Can I do that?

 

[Terry_w]

Thanks Terry,

What if they do release the 10% deposit to the seller before settlement?

I will contact my solicitor and ask if I can pay the 10% deposit subject to it not being release before settlement?

Can I do that?

If the deposit is released you risk not getting if back.