We are looking at buying a QLD property at receivers auction that has two mortgages and one caveat placed on the property.
1. Generally speaking, will these be released/removed and will we get clear title to the property?
2. Is it possible that not all mortgages will be released and the caveat will not removed at settlement?
The contract has a special condition that if the Bank replaces the contract before settlement date, with the Bank as seller in its capacity as mortgagee exercising its power of sale (instead of the owner/receiver as the seller in the existing contract), then "the Bank is not obligated at Settlement Date to provide the Buyer with releases of any mortgagor or other security over the Property (other than that for any mortgage or security that has priority over the Mortgage)".
Does this sound right? Can they do this? Does this mean you would inherit Mortgage #2 and the caveat?
Desperately need some insight!
Thanks so much!
1. Generally speaking, will these be released/removed and will we get clear title to the property?
2. Is it possible that not all mortgages will be released and the caveat will not removed at settlement?
The contract has a special condition that if the Bank replaces the contract before settlement date, with the Bank as seller in its capacity as mortgagee exercising its power of sale (instead of the owner/receiver as the seller in the existing contract), then "the Bank is not obligated at Settlement Date to provide the Buyer with releases of any mortgagor or other security over the Property (other than that for any mortgage or security that has priority over the Mortgage)".
Does this sound right? Can they do this? Does this mean you would inherit Mortgage #2 and the caveat?
Desperately need some insight!
Thanks so much!