Caveat on property going to auction

Im interested in a property going to auction soon that has a caveat.

It has a caveat that was lodged in the last month. I suspect it was only lodged after the property was listed for sale and that it may take some time to settle. This is no problem for me.

What do I need to do to protect myself at auction?

Do I need to negotiate any special terms before auction day?

Do you usually have all documents looked over by a conveyancer before auction day?
 
What do I need to do to protect myself at auction?
A gun? How rough is the area? :p

Do I need to negotiate any special terms before auction day?
Only if you are not happy with the contract as it currently stands.

Do you usually have all documents looked over by a conveyancer before auction day?
Yes.

In the absence of any changes being requested by your solicitor/conveyancer and agreed to by the vendor's side, then you are accepting the contract as it is, in the event that you are the successful bidder.
 
There's plenty of legitimate reasons why there might be a caveat on the property. You see it all the time in cases of deceased estates, divorce, etc. Usually what happens is the caveat is removed at or shortly before settlement. Experienced conveyancers should know how to easily deal with this.

A major concern is that if settlement doesn't proceed, will you get your deposit back? Make sure the deposit is paid into the agents trust account, and don't release it until settlement.
 
Yes, I bought with the caveat, family overseas was fighting over estate planning. Deposit was safe in agent's trust and refundable, the caveat was removed and stated it will be removed by the vendor's solicitor. prior to purchase.
My lawyer communicated those conditions so make sure your solicitor/lawyer is experienced!
 
Make sure the deposit is paid into the agents trust account, and don't release it until settlement.

stuff that, pay it into your lawyer's trust account. Only today I had a mate trying to settle a property ad the buyers are nit picking over some small issues so he said fix them and take the funds from the monies on trust, the agent fired up about him spending her commission! he soon sorted her out

coincidentally he is trying to recover a deposit from another deal where the funds went into the selling agents trust account. agent won't release as there is dispute about who validly terminated the contract, so now he is forced to commence interpleader proceedings and litigate the matter. They are all squabbling over $10k! should add that this deal is in a $2 company so he has nothing to lose, other than the $10k that they won't release anyway
 
What do I need to do to protect myself at auction?

Do I need to negotiate any special terms before auction day?

Do you usually have all documents looked over by a conveyancer before auction day?

For a caveat use a lawyer. It could be listed in relation to an equitable interest or a family law matter which a conveyancer would not be able to advise on.

You will find that no lender will settle with a caveat on title as they may not be able to register their mortgage, or discharge an existing mortgage. So you need to investigate why the caveat is there and try to get promises that it will be removed at settlement or before. Consider also that the settlement may not be possible and any costs incurred could be lost.

Special conditions need to be included in the contract to cover yourself as best possible.
 
Thanks for the input. I will get some advice on any special conditions I should negotiate. Have the contract and caveat looked at before auction, and go from there.

Caveat is on 3 properties, was lodged 10 days ago, and its a relationship that has split.

Has anybody negotiated a $1000 deposit at auction?

A gun? How rough is the area? :p

Couple of warning shot to clear the auction room, should help it go cheap, I like your thinking. ;)
 
The Form 1 document will be on display at the Agents office 3 days prior to Auction and also available 30 minutes prior to the auction at the property.

This Form 1 document will have an item that contains the information in relation to the caveat. It will clearly state if the Caveat will be discharged or remain on the property.

There should also be an annexure to the Form 1 with the details of the Caveat.
 
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