Hi Guys,
recently I found a nice house going for auction but once i conulted a lawyer (which is no longer our lawyer as he is unreliable), he warned my fiance and I to not bid unless the caveat is removed as this could cause issues.
Because of this advise we missed out this great opportuninty as no one showed up to the auction…
my quetion is, who has had experience with Caveats and are they as bad as the lawyer made it out to be?
As the lawyer says; don't buy unless the caveat is removed.
The caveat can be for a number of reasons. Mostly from someone that the property owner owes money to.
You need to know what the caveat is for. If it is simply noting that some money is owed that's not usually a problem, but if it is claiming ownership of the property because of a contract or an agreement etc etc the vendor really needs to sort that out before putting on ther market. If noone turned up at the auction then I would assume other people's lawyers gave similar advice to yours
A caveat means another person has in interest in the property. They are not supposed to be issued for loans. The title cannot be transferred until the caveat is removed, so things could get messy if it is over a marital breakup etc. Your solicitor should have been able to see onl what grounds the caveat was issued.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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