is this legal - caveat

Discussion in 'Legal Issues' started by rob9999, 16th Feb, 2020.

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  1. Scott No Mates

    Scott No Mates Well-Known Member

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    Nothing happens if you don't grease the wheel. They are not affected if they leave the caveat on the property, it affects you and the ball is in your court if and when you want to deal with the issue.

    If you pass away tomorrow, then it will become more complex to prove that you no longer have the debt, the executor will then have to pay the $ to get the caveator to remove their interest in the property.
     
  2. rob9999

    rob9999 Active Member

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    i do not agree
    1 the debt is paid. account reflects this
    2 >

    Compensation for lodging caveat without reasonable cause
    Any person lodging with the Registrar without reasonable cause any caveat under this Act shall be liable to make to any person who sustains damage thereby such compensation as a court deems just and orders.

    TRANSFER OF LAND ACT 1958 - SECT 118 Compensation for lodging caveat without reasonable cause
     
  3. Perthguy

    Perthguy Well-Known Member

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    In this case you can take legal action to seek compensation if the court finds the caveat was lodged without reasonable cause.

    Just two questions. How much would legal action cost? Can you convince a court that the caveat was lodged without reasonable cause?

    I realise that what happened is upsetting but you really need to understand the legalities of what has happened before you take any action. There is a lot of good information here, which I would encourage you to read

    Lodgment of Caveats - Carroll & O'Dea Lawyers
     
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  4. Trainee

    Trainee Well-Known Member

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    ok so what are you going to do, op?
     
  5. Terry_w

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

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    Didn't they have a reasonable cause?
     
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  6. Trainee

    Trainee Well-Known Member

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    this seems to be about lodging, not removing.

    also how much would it cost to get a court order to remove?
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    More than the $400 that was mentioned earlier. This is all about the principle, if you *+%€ up, admit you were wrong (as per the judgement) and pay up the required amount for the removal of the caveat.

    The titles office doesn't allow a caveat to be lodged without due cause (ie caveatable interest), so it's unlikely that the court will find otherwise.

    Why is the caveat there in the first place? Refer to your favorite Act.

    "PART V—INCIDENTAL PROVISIONS
    Division 1—Caveats against dealings
    89 Caveats temporarily forbidding dealings with lands
    (1) Any person claiming any estate or interest in land
    under any unregistered instrument or dealing or by
    devolution in law or otherwise or his agent may
    lodge with the Registrar a caveat in an appropriate
    approved form forbidding the registration of any
    person as transferee or proprietor of and of any
    instrument affecting such estate or interest either
    absolutely or conditionally and may, at any time,
    by lodging with the Registrar an instrument in an
    appropriate approved form, withdraw the caveat
    as to the whole or any part of the land.
    (2) A recording of every caveat lodged under this
    section must be made in any relevant part of the
    Register.
    (3) The Registrar shall give to the registered
    proprietor of the estate or interest concerned
    notice of the caveat together with a copy of the
    caveat or of such particulars thereof as the
    Registrar deems material to such person.
    (4) Every notice relating to any such caveat and any
    proceedings in respect thereof if served at the
    address specified in the caveat shall be deemed to
    be duly served."
     
    Last edited: 19th Feb, 2020
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  8. Perthguy

    Perthguy Well-Known Member

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    Unlikely, I agree. The link I provided did have a couple of examples but they were exceptional, not routine like this appears to be.

    Without legal advice we won't know, but looking through the list of reasons in the link I provided it seems this coukd be relevant

    The interest of a person with a right to have the land sold and to have a portion of the proceeds of sale
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    As you said legal advice would include a review of all relevant subordinate legislation which created and grants powers to the utility and the extent/exercise of those powers.

    Often the powers are wide ranging at other times an agency is unable to exercise such activity or may be at the Minister's discretion.
     
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  10. Trainee

    Trainee Well-Known Member

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    So to recap.

    a caveat was lodged legitimately.
    There is no law that says a caveat has to be removed by the party who put it on within a certain time.
    Party charges a fee to do this.
    Challenging this would cost more than the fee.

    so, op, what are you going to do?
     
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  11. The Y-man

    The Y-man Moderator Staff Member

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    Hi Rob,

    I think where there might be some confusion is this wording right here:

    The question (from us) here is:
    1. was the money paid on time, and the utility screwed up, registered a default and put a caveat on the prop even though you owed no money at the time (i.e. you paid the bill on time every time)
    2. OR you actually owed $5k (not realising this until you became aware of this outstanding default and the caveat had been put on the property etc), and subsequently paid the money after the default was registered and caveat placed on the prop
    We are (I think) reading it as case #2 - and unfortunately since you did owe $5k (even though you were unaware), the caveat was placed in a legit way (their side of story: rob owed us $5k, we tried calling him, no luck, no choice but to put caveat on property). So now, once you have paid up the debt, the cost of removing the caveat is sort of a "penalty cost" for missing the payment (hence the somewhat harsh sounding critique in the posts above talking about responsibility and what not).

    On the other hand, if it is scenario #1, the you have been totally done in for....

    Either way, have you been in touch with the office of the relevant onbudsman (wait, is that ombudsperson)?

    The Y-man
     
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  12. Terry_w

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

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    This is what I think has happened.
    A bill was not paid for whatever reason. This eventually led to court proceeding which resulted in a default judgment. Caveat was lodged before or after this.
    Judgment debt was paid but removing the caveat will result in more fees and the poster doesn't want to pay these fees thinking that he has paid the debt and there is now no longer any basis for their to be a caveat or to charge a fee for it's removal.
     
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  13. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Mortgages arent automatically removed from title either and people get surprised when their bank sends a form that seeks that instruction - and asks for a fee to be paid.
     
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  14. Perthguy

    Perthguy Well-Known Member

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    Under ss89A and 90(3) of the Transfer of Land Act 1958 (TLA) there are two different procedures available by which a party can remove a caveat.

    1. Removal under s89A

    2. Removal under s90(3)

    Removal under Section 89A must be in the prescribed form and must be supported by a certificate signed by a legal practitioner which states that in his or her opinion the caveator does not have the estate or interest claimed.

    The procedure under s90(3) of the TLA allows a court to determine summarily the issue of the removal of a caveat. Section 90(3) provides that “any person who is adversely affected by any such caveat may bring proceedings in the court against the caveator for the removal of the caveat and the court may make such order as the court thinks fit”.


    The proceeding is usually brought by originating motion in the Practice Court of either the Supreme or County Courts (if the value of the land is less than $200,000). The registrar of titles is usually made a defendant to the proceeding but customarily will not participate. It is possible to invoke this procedure even if proceedings are already on foot.


    The onus of proof to maintain the caveat is on the caveator. This will require the caveator to swear an affidavit to substantiate the caveatable interest and depose to any other matters relevant to the application. The first consideration for the court then is whether the caveat complies with all formal requirements.


    https://www.liv.asn.au/LIV-Home/Practice-Resources/Law-Institute-Journal/Archived-Issues/LIJ-April-2004/Removal-of-caveats-the-possibilities

    Seems like removal under s90(3) could be an option?
     
  15. Terry_w

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

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    What are the filing fees and drawing up the motion will cost if a lawyer does it
     
  16. Perthguy

    Perthguy Well-Known Member

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    Is there a legal requirement for a lawyer to draw up the motion?

    I don't know what the filing fees are. Could be costly.
     
  17. Terry_w

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

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    No they could do it themselves if they knew how
     
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  18. Perthguy

    Perthguy Well-Known Member

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    Big if.

    Also, if a motion was filed then withdrawn, let's say the other party removed the caveat, is there a fee for withdrawing the motion?

    I'm starting to think the whole proposition is risky. If it proceeded to hearing then there could also be court costs.

    It might be cheaper and easier just to pay the $400
     
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  19. d_walsh

    d_walsh Well-Known Member

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    Most states have provisions for issuing of a caveat lapsing notice as Terry pointed out. Small fee and a form. Try this with a free community lawyer to sign off on form.

    Free legal service or court clerk can help with motion. However courts are usually more lenient for self represented applicants, especially if can produce an email from caveator saying no remaining interest. Also, usually no fee for withdrawing, but there is an initial filing fee.

    Either way - only free solution is to pay bills on time.
     
    Last edited: 19th Feb, 2020
  20. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    ahhh

    the price of being right

    rarely worth it

    ta
    rolf
     
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