Browse Forums General Discussion Re: Should I register a Caveat? 4May 09, 2009 10:46 am Hmm. I wonder if your conveyancer knows something you don't? Or perhaps they're just very cautious... Like I said, it's a small cost, so if it makes you feel more secure, then do it. Re: Should I register a Caveat? 5May 09, 2009 11:14 am Having working in real estate I have not heard of that one but of course could varied from state to state.I heard of it beening done for other reason but not that one. finished building 40 square home on 5 acres with perry homes.working on the landscaping just finished pool deck with ://forum.homeone.com.au/viewtopic.php?f=31&t=2217 Re: Should I register a Caveat? 6May 09, 2009 12:10 pm Hello. It's so funny this question has come up.... I am studying law and am just about to do a big property assignment, so maybe I can help a little (though remeber, it's just an opinion). It's not been common practice to lodge a caveat after exchange of contracts in Australia, but until the property is registered to you, there is always the risk that someone else may become registered (as the torrens system provides that title is by registration, not registration of title). The case of Black V Garnock in 2007 has now shaken things up a bit. In that case one of the high court judges said it would be 'bad practice' (or something along those lines) to not lodge a caveat. So, my understanding is, most conveyancers etc are recommending caveats now to cover their buts, and also yours.... thats my 2c... Hope it helped. Re: Should I register a Caveat? 7May 09, 2009 5:25 pm very useful information I studyed contract law in my dipomla in real estate but that was away back in the 90,s so you have cleared that up for me as it has happened in 2007 how things change finished building 40 square home on 5 acres with perry homes.working on the landscaping just finished pool deck with ://forum.homeone.com.au/viewtopic.php?f=31&t=2217 Re: Should I register a Caveat? 8May 09, 2009 5:51 pm Our solicitor advised that caveats should not be placed when a property is not yet subdivided (which is our case) unless we have a reason for doing so. The reason is that the caveat will hold up subdivision. And our contract actually specifies we are not allowed to place one for that very reason. But they recommended a caveat for all other situations, unless we have a good reason not to. I'm buying in Victoria. Metricon Riva 33 - http://herlihy-riva.blogspot.com Site start 15/03/2010 - Handover 23/12/2010 9 months and 8 days (284 calendar days) from site start to handover Re: Should I register a Caveat? 9May 09, 2009 6:39 pm flicka Hello. It's so funny this question has come up.... I am studying law and am just about to do a big property assignment, so maybe I can help a little (though remeber, it's just an opinion). It's not been common practice to lodge a caveat after exchange of contracts in Australia, but until the property is registered to you, there is always the risk that someone else may become registered (as the torrens system provides that title is by registration, not registration of title). The case of Black V Garnock in 2007 has now shaken things up a bit. In that case one of the high court judges said it would be 'bad practice' (or something along those lines) to not lodge a caveat. So, my understanding is, most conveyancers etc are recommending caveats now to cover their buts, and also yours.... thats my 2c... Hope it helped. That's interesting, flicka, ta for the explanation. I looked up the case and I can see the issue related to a situation where the vendor had bad debts, with creditors taking action to ensure the property couldn't be disposed of and the proceeds whisked away. It also explains a question someone posted a while back about title insurance, which I'd never heard of and couldn't see the need for. Obviously, conveyancers aren't explaining this at all well to their clients. This is a very brief summary, for anyone who's interested: On 1 August 2007, the High Court delivered its decision in ‘Black v Garnock’ [2007] HCA 31, which has significant implications for Conveyancers. The facts of the case involved the purchase of a rural property. Contracts were exchanged. The day before settlement judgment creditors obtained judgment against the vendor. A writ of execution was recorded in the register on the day of settlement, which was not revealed by a title search carried out by the purchaser's solicitor early on that day. Settlement took place, but the transfer could not subsequently be registered due to the writ. The matter was appealed all the way to the High Court. The High Court held that the writ took priority, as it was registered and the transfer was not, irrespective of the fact that exchange took place before the issue of the writ. In its judgment, the High Court suggested that "old practices are best" and prudent conveyancing practice requires: 1. lodging a caveat between exchange and completion of contracts; and 2. ensuring a final search of the register is completed at the time of settlement. The full high court decision is here: http://www.austlii.edu.au/au/cases/cth/HCA/2007/31.html (I love our legal databases - you can find ANYTHING! Er...does that make me a nerd? ) At least our real estate system doesn't suck like the UK one, where you don't know if you're actually going to have a place to live till the very last minute, because the vendors can just change their minds. Re: Should I register a Caveat? 10May 09, 2009 9:53 pm Registering a caveat is really unnecessary. On the morning of your settlement, your conveyancer will do a final title search of the property to ensure that you're getting clear title to the property. Then, at settlement, you (or your bank) are given the original certificate of title. The transfer is then lodged with the certificate of title shortly thereafter, transferring the property into your name. In Black v Garnock, the final search was done in the morning which showed a clear title, then the ******* stuff took place between the time of the final search and settlement. Yes, a caveat would have prevented the result, BUT, the likeliness of something happening between final search and settlement is verrrryyyyyyyy slim. In practice, caveats aren't used to protect your interests between exchange and settlement. You're paying your conveyancer to ensure you receive a clear title. Sure, there are recommendations out there suggesting all legal practitioners cover their backsides by doing so, but in every day practice, it is hardly ever done as it is time consuming, incurs additional expense and is generally pointless unless you're unfortunte enough to fall in the 0.00001% of cases as above. Building a Wisdom Homes Impression 33 MkII http://lilypadintheponds.blogspot.com/ We have the keys! Tiling in progress... Re: Should I register a Caveat? 11May 09, 2009 10:36 pm a recent wa supreme court action , taught us there are different types of caveats... The correct one might help you, and the wording is very important Where you are coming from is where you are going to... Are you saying that these consultants are involved at key-points of the building, and perform site inspects at the stages, or only after building is completed to point… 4 9010 That's very helpful, thank you. I was mostly interested in knowing if a spoon drain requires a specific slope, but I appreciate the extra information. 4 3922 i imagine you also have another contract with an architect? and yeah, whatever other's said about special conditions and appendices 16 11148 |