Mortgage registration with caveat

Hi guys,

Can a mortgage be registered if a caveat exists on title. I have noticed recently caveats on properties from tower companies , sub stations ect. Would the bank need to get there consent? How does it work?

Thanks

 

A bank would not lend while caveat on title.

 

Thanks terry. But can a mortgage be registered though? Say it wasn't a bank. I also thought caveats on sub stations are quite common and banks don't have to many issues with them.

 

I don't think a mortgage can be registered if a caveat is on title as the caveat would prevent any dealings generally.

 

Caveat has to be removed when the mortgage is put on. You can then register it again. Your conveyancer would contact whoever put the caveat on and ask them to have it removed.

 

Thanks guys. Just spoke to my lawyer. A second mortgage can be registered with a caveat.

 

No it can't.

Second mortgages come in 2 forms.
A. Unregistered or equitable.
B. Registered.

An unregistered mortgage is not recorded on title. But someone who has a mortgage over property has an equitable interest and it is this interest that can be notified to all but lodging a caveat.

 

Why would you want any property that has a caveat on it unless you are the one who placed the caveat ?

A mortgage would have to be first, as that is what most lenders will want, right of first mortgage, not a legal battle with whomever has an interest prior to them.

PS Further to that, look at your loan docs, most will specify you must take every action to remove a caveat if it is a resi mortgage, so you can't even suggest to have it removed and it can be out back later.

 

caveat or utility easement?

 

Yeah, was thinking same thing, may be talking easement.....

 

The caveator will readily provide their consent to a new mortgage etc.

In states like Vic where leases may not be registered on title, caveats are typical

 

That sounds like an abuse of caveat to me.

A lease holder does not have an equitable interest in the property IMO. They have use of the property.

It also cannot over ride your loan contract with a lender that specifically sets out that this is not allowed or must be removed.

Not sure how it works in practice down there, but that would not fly here.

 

My mother in law owns a massive corner block in bayswater. I was speaking to her husband and asked if he had considered developing it as it would be a gold mine.

He said he can't because the previous owner who owns the house next door put a caveat on title prior to selling that it cannot be developed, that is why he bought it so cheaply.

Can't say I even knew this was possible! I thought council controlled what can and can't be built.
Thinking long term though, this property will likely find its way to us and I'll be damned if I'm not putting 6 townhouses on it. So not sure how I'm going to tackle that one when it's likely the owner will have well and truly passed on by then.

 

Caveat simply shows an interest in the property. How else would a purchaser know for example if not registered. Relates to say telco leases

 

If they have no legal interest in the property, you apply for it to be removed, if they deny, you go to court.

 

Hi

I thought that a tenant could register a lease on a title in the state of Victoria. For example if a tenant such as a Medical Centre wanted to sign a 20 year lease on a commercial property I thought that they would normally register this on the landlord's title, in fact I thought that it would be a requirement for some finance companies that are lending money to a Medical Centre for a fitout for this to be done.

Regards,

alicudi

 

A lease can be registered on the title, places like the DHA will do this as they are often say 10 years, or longer than 3.... this is not a caveat.

 

Most lenders don't allow for caveats but some do (namely Westpac and St George) depending on the the type of caveat and credit would need to sign off on it. For this reason its best to not have the caveat were possible.

 

Are you sure you're not mistaking an easement for a caveat?

There's an easement in the back yard of my house for the local water company. It didn't stop the bank from lending against the property, but I can't get council approval on anything being built over it.

 

I bought one once where there was a caveat over the property ,and the contract fell over three times as the title holder put on caveat over his mother as her name was also on the title and this person was already serving a custodial sentence,the only way the caveat was lifted was when the ATO wanted the unpaid taxes from his business dealing within that property..Unless the caveat is lifted then each contract will go nowhere..imho..