Bankruptcy Auction - Caveat on title normal?

Discussion in 'Legal Issues' started by bamp, 27th Aug, 2019.

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  1. bamp

    bamp Well-Known Member

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    Hi all,

    I am thinking of bidding at a bankruptcy auction and have noted that the s32 lists one of the owners as "the estate of Mr XXX", and there is a caveat on the title for the "trustee of the bankrupt estate of Mr XXX".

    Is this normal? What are the normal steps to take to minimize the risk that being the winning bidder will not remove the caveat?

    I was planning on speaking to the trustee today to ascertain the details, but would be interested in hearing anyone's experiences on this matter.

    Cheers
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Title hasn't been transferred yet to the trustee. Just confirm with them or their lawyers that any caveats will be removed at or prior to settlement.

    But keep in mind that you won't be able to settle unless this happens.
     
  3. d_walsh

    d_walsh Well-Known Member

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    Trustee usually lodges a caveat so the bankrupt doesn’t sell the property and keep the money to the exclusion of the trustee/creditors.

    Assuming the trustee is involved in the sale process, he’ll remove the caveat on settlement as it’s in his interest. But as Terry said, best to check with the trustee so the bankrupt isn’t trying to be sneaky.