Queen's Caveat in Section 32

[kntan]

I was looking at a contract of sale (section 32) in Melbourne and saw a Queen's Caveat. What does it mean?

On the Registrar of Titles Victoria it says:

Her Majesty Queen Elizabeth II forbids registration of any transfer or dealing with any part of the land by the named registered proprietor.

Reason for recording Queen's Caveat:
Names registered proprietor is a represented person within the meaning of the Guardianship and Administration Board Act 1986.

As such this property is handled by the State Trustees.

Does that mean that any future owner who wants to sell the property will have to go through State Trustees? Can the Queen's Caveat be withdrawn?

 

[grossreal]

hi kntan
someone has not paid either a fine and gone to gaol( could be proceeds of crime) or they have land tax out standing one or the other.
your solicitor will get it removed at settlement.
I have them all the time no problem
they can be if you are trying to refinance a deal with one on but you just have to pay it( if its a court on ethere will be a value and that come out of the money at settlement).
this caveat unlike all others does not have to have the land owner permission nor does there have to be any notice to any lenders they can go on with out any information to the land owner.
so the owner may not have know it was there until a search is done so it not a major issue take 1 day to come off

 

[Raddles]

Hi there
if the Guardianship and Administration Board is referred to - it means whoever the registered proprietor is does not have "capacity" to deal with the property - and the State Trustees are the parties who have been appointed to act.

It is a bit like dealing with someone who has a Power of Attorney - you will just need to deal with the State Trustees who will likely withdraw the caveat when it comes to settlement.
thanks

 

[kntan]

Thanks for the explanation. I did rang up dse and yes, they said the Queen's Caveat can be removed once the state trustees are happy after the sale.

 

[Kristine..]

Hi kntan

No, not after the sale, the caveat must be able to be removed at or prior to settlement to enable you to have 'clear title' otherwise you do not have the right to become the Registered Proprietor and therefore do not have the right to offer mortgage to your lender.

Caveats are not uncommon.

No: 1 Son, when buying his second property, saw in the S.32 that there was a Caveat lodged by Legal Aid. The Vendor had used the services of Legal Aid and didn't have any money to pay the bill, so Legal Aid registered a Caveat over the Title.

At Settlement, Legal Aid would be paid their outstanding bill and would provide a Release of Caveat.

All very well, except that the Vendor's cut-price conveyancer completely forgot to organise this, so everyone was there at settlement except the Legal Aid representative.

So they all went home again - luckily everyone was able to be organised again for later that day, but cheques had to be cancelled and redrawn - a cost which was passed to the Vendor (hope she passed this along to her conveyancer)!

I recently had a loan application in process and the lender discovered a caveat registered against the title by the owner's de facto. He had no knowledge that she had done this, and because she refused to remove it or even discuss it he had to withdraw his application to refinance as the lender would not proceed with the application until the caveat was removed.

I rang a number of other lenders and the response was the same: For a refinance, a caveat would stop them dealing with the file. Why go to all that bother and expense when they may be unable to settle the refinance if the owner of the caveat refuses to lift it to enable the deregistration of the current mortgage or the registration of the new mortgage?

So for a purchase, the existence of a caveat is no big deal, but it will stop a refinance in it's tracks!

Cheers
Kristine

 

[kntan]

Thanks Kristine, will make a note to make sure my conveyancer get the release of Caveat prior settlement, but then again that is 'if' I win the auction.

 

[steveadl]

Geez, and here I was thinking that it meant the Queen took a fancy to the house and wanted to be notified if it ever came on the market!

 

[luzna]

Should the caveat be withdrawn before settlement or on settlement they will produce a letter for the cavet to be removed. Whats the procedure because Im doing my own conveyancing and the property I bought has a caveat, setlement is 90 days.

 

[Raddles]

Hi there
you need to have a withdrawal of caveat at settlement so that you can lodge that with your transfer and any withdrawal of mortgage.
You need to liaise with the party who has the caveat to organise this
thanks

 

[luzna]

Than you so much