Just reading some corres from my conveyancer and came across this suggestion.
Quote 'We recommend that a caveat in your name be registered on the title to the property to protect your rights. By doing so you will be telling anyone else who tries to deal with the property that your rights come first. If you do not have a caveat on the title there is nothing to stop the vendor from releasing the deposit under Section 27 of the Sale of Land Act 1962, selling or mortgaging the property or someone else making a claim to it. Otherwise another person, whether a purchaser or a lender or creditor, can register its interest on the title and defeat your claim, you may lose all or part of your deposit' Cost is $250 and is well worth your piece of mind.
Is this something that Property Investors do frequently or at all?
Cheers
Karen
i done a caveat purely for peace of mind it only cost me $70 odd dollars
i don't know were they got that figure fromCan you fill us in a little more Kooz? Either the vendor is also the deposit holder or the REA/Vendor's solicitor is the deposit holder – which is it? In the former, in both instances the vendor can (virtually) walk away with the free use of the deposit as pointed out, and your only way of protecting your rights is by way of a caveat. Releasing the deposit means that the vendor gets to use the deposit for their own purposes eg deposit on new house elsewhere, pay off other debts, skip the country etc… The danger being, if the contract for sale falls over and the deposit has been released, then you stand little chance of getting those monies back esp if they have spent the money. Hence many investors try to get the deposit to be a token amount ie not worth requesting a release.
You should put a caveat as various things can happen between signing the contract and settlement. There was a case about 2 years ago where someone signed a contract and then at the last minute, 2 hours before settlement, some other party registered a writ for a debt owed. It was deemed the other person had priority as they registered their interest in the property first.
So now all lawyer would be covering themselves by advising you about the need to caveat. whether you do or not is up to you. The risks may be low, but it could happen. The case was a High Court case called Black v Garnock. Do a google and you can read some analysis.
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
Phew…
Settlement date came and went on Friday with no mishaps.
The above case of Blackv Garnock certainly makes me stop and think of the advantages of spending $70.90 if I go directly to lodge a caveat or $250 via the conveyancer.
Karen
Hi, are ther DIY caveat packages you can buy need one very soon anyone know how one goes about obtaining one in Tasmania
Thanks
sandy26-64Hi,
Does anyone know if there is a DIY caveat package I can obtain and where do I get it from
What is the price
Thank you
sandy26-64caveats are pretty simple. Just a few pages to lodge one. You can get info from the Land Titles home page of your state. The staff at the titles office may be able to help you fill in the form if you get stuck too.
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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