To take out a caveat or not?

[The_Bludger]

I bought an IP a few weeks ago and my conveyancer has sent me some doco in regards to whether I want to lodge a caveat or not. Nothing special about the property, so I'm thinking I don't need to. Is this a money making exercise for them or do I need to sign my life away and lodge one? Is taking one out normal practise or not?

Also, conveyancer has asked if I want to apply for a Form 10 Certificate from the council at an extra cost and to be honest, I don't know what one is.

Finally, there's also an option to monitor progress of registration of the settlement at an extra cost I assume.

Can anybody please advise on any\all of the above 3 items?

 

[super_sam]

Not sure why anyone would put a caveat on their own property. Perhaps you want to stop yourself from refinancing or selling the property. But then I suppose you could always ask the person who lodged the caveat (you) if they could lift it in order to complete said tasks. I'm sure the conveyancer will assist with that too...

 

[The_Bludger]

Not sure why anyone would put a caveat on their own property. Perhaps you want to stop yourself from refinancing or selling the property. But then I suppose you could always ask the person who lodged the caveat (you) if they could lift it in order to complete said tasks. I'm sure the conveyancer will assist with that too...

My conveyancer is on leave, so I am looking for some advise here, as no doubt, this would be a common thing yeah?

The property settles in 2 weeks time. Maybe I need one so current owner can't resell? Who knows...

 

[Ausprop]

personally i wouldnt bother for 2 weeks... it's your call tho

 

[boomtown]

Sounds like your conveyancer is trying to take a short cut by relying on the caveat so they dont have to do another search on the settlement date to confirm clean title.

I would prefer a search on settlement date.

 

[super_sam]

Sorry the way I read the original post I thought the property had already settled

 

[linglc]

Hi Bludger,

I am not sure if your conveyancer can actually even lodge a caveat against the title of the property, as it is likely that the caveat will have to be supported by the ground that there is a need for status quo pending some judicial determination of rights.

I would agree with boomtown that it will be wise to perform a search against the title nearer the settlement date.

Regards,

LC

 

[josko]

Not sure why anyone would put a caveat on their own property. Perhaps you want to stop yourself from refinancing or selling the property. But then I suppose you could always ask the person who lodged the caveat (you) if they could lift it in order to complete said tasks. I'm sure the conveyancer will assist with that too...

Yes very strange. The only person that can sell the property is you! I'd be interested to know your Solicitors reasons for it.


Regards Jo

 

[super_sam]

I am not sure if your conveyancer can actually even lodge a caveat against the title of the property, as it is likely that the caveat will have to be supported by the ground that there is a need for status quo pending some judicial determination of rights.

The current owners would get a letter in the mail notifying them that the caveat had been lodged and could probably have it removed at your expense it they wanted to. You dont own the property, so have no equitable interest in it yet.

For all you know they could be in a bad state financially and may be in the process of arranging a short term loan, and another caveat being lodged could stuff that up for them. Short term lenders secure their loans via caveats, and in the current climate wont agree to being 3rd on the list (behind existing 1st mortgagee and your caveat). Unlikely I know but it seems like a good way to p*ss the vendor off

 

[Rolf Latham]

not uncommon where a longish settlement is involved, esp in Victoria

stops any late mortgages being lodged which may impinge on the settlement

ta
rolf

 

[The_Bludger]

Also, conveyancer has asked if I want to apply for a Form 10 Certificate from the council at an extra cost and to be honest, I don't know what one is.

Finally, there's also an option to monitor progress of registration of the settlement at an extra cost I assume.

Thanks all. I'll organise for another title search to be done on settlement date. How about the other two points above? Any idea's?

 

[Player]

not uncommon where a longish settlement is involved, esp in Victoria

stops any late mortgages being lodged which may impinge on the settlement

ta
rolf

Rolf Latham has made an excellent point.

My advice by my solicitor in a recent property purchase transaction was to lodge a caveat. It was a four month settlement.

Also there was a recent case before the High Court where purchasers who had completed the purchase of a property in NSW were prevented from attending to registration of the transfer and could not ultimately become owners of the property due to the fact that between the date of sale and the date of settlement a third party to whom the vendor was indebted had obtained a writ of execution over the property.....etc.

Cost to register caveat in Vic $70.40 and nominal cost to prepare and register by solicitor of $55.00.

I guess you can look at it as a form of cheap insurance or a hedge to your position.

 

[Ausprop]

an unconditional contract to purchase is an equitable interest that is caveatable. indeed when lodging such a caveat the reasoning is the contrcat, which is submitted with the documentation

a caveat won't prevent someone lodging a mortgage over the property, or another caveat

a caveat doesn't give you any ability to deal with the property and in reality if they refuse to settle with you it will be a 2 year legal battle anyway