Caveat on property in Victoria

Discussion in 'Legal Issues' started by the world is your oyster, 15th Aug, 2017.

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  1. the world is your oyster

    the world is your oyster Well-Known Member

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    hi all Iam looking to buy a property in vic
    And I was planing to use my equity but due to a missed payment on my ppor I have to wait a few months for my money . I have a option to go a head stil I have a guy who will lend the money but we need to get a loan agreement and wants a caveat on the property I understand that

    My plan is getting a 5 months settlement and selling befoure settlement via the add or nominee clause .
    Question is how does the caveat get dropped if I go down this path ? Is this a doable deal ?
     
  2. Terry_w

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

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    My reply from the other thread:

    Hi Oyster

    I have turned off my pm as I get too many questions like this.

    You should seek legal advice and so should your mate. How does he Lodge a caveat in which he has no interest and in which you do not own?
     
  3. the world is your oyster

    the world is your oyster Well-Known Member

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    I guess he has a vested interest as he has some money invested in the deal ?
     
  4. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    If it's just one missed payment it shouldn't be dead in the water (assuming no LMI). Are you open to taking it to a different lender?

    I have often had a late payment ignored if we can provide an explanation as to why it was missed.
     
  5. the world is your oyster

    the world is your oyster Well-Known Member

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    I was thinking that in a way
    I have 180k in equity in my home is a bit disappointing to get rejected 100k or even a much smaller amount would have done .
    Over such a little thing
    It's with nab

    I have other loans with cba and been late befoure but the make the account go in minis and don't give u grief over a day or two they stil make the payment , maybe because I banked with cba for ever and only just started with nab?
     
  6. the world is your oyster

    the world is your oyster Well-Known Member

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    Sorry was two
    Very first payment I put the money in to the mortgage directly not in to direct debit acc
    2nd time I was one day late errrr
     
  7. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    @the world is your oyster So it was a bit of teething problems setting up a new bank? Should be easy if that's the only thing going against you! Can even get it signed off by the lender prior to application so no stress!
     
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  8. Terry_w

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

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    Certainly not vested. He has only lent money to the potential purchaser. If the purchaser becomes the legal owner then the lender may have a caveatable interest - his property used to acquire it. But I cannot see how this could be the case prior as the lender has no relationship with the current owner.
     
  9. the world is your oyster

    the world is your oyster Well-Known Member

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    Yeah it was
    I was really only getting used to the new system I had to do errr
    So what u mean a new bank transfer from my bank to another ? And do a refiniance from there ?
     
  10. the world is your oyster

    the world is your oyster Well-Known Member

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    Yeah I see what ur saying ! :)
    Say I did go down the path how does it get removed ? And can I sell via add or nominee clause it there is a caveat in place can that get removed with sales funds paying him out and the owner befoure I get paid ?
     
  11. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    Do a refinance + equity release from CBA to 'Bank B'. Bank B should have already run your situation past run past Credit so no nasty surprises when you put in the application.
     
  12. Terry_w

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

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    If a caveat was able to be lodged you would just need to lodge a withdrawal of caveat form - the person who lodged.

    You can onsell by nomination of a new purchaser but will probably be up for double duty. A caveat will only prevent further dealings so it would need to be removed before settlement.

    Try with a broker first and if that doesn't work why doesn't your mate lend secured against another property you own? you could let him take a mortgage which is real security - a caveat isn't a form of security.
     
  13. the world is your oyster

    the world is your oyster Well-Known Member

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    The thing with that is th cba loan doesn't have equity in it
    The nab loan is he one with the equity
     
  14. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    You should be able to do the same thing, refinance + cash out from NAB to 'Bank B'.