Hi, As the buyer I signed a contract for a house on the 11th of December 2021 with a 90 day settlement (vendors are separating). On the 3rd of March 2022 (8 days before settlement) a caveat was placed on the property by the parents of one of the couple as they apparently provided cash for the deposit on the initial purchase. Settlement is 18 days overdue and not likely to proceed anytime soon due to the caveat and infighting between the couple over money. I have placed a 'Notice to Complete' on which expires in three days however still want to go ahead with the purchase (NTC was put on to hopefully spur them on), however this could go on for months. I have had t to cancel removals, extend leases, re-arrange cleaning and cancel painting and flooring contractors due to the vendors problems (at my own cost). I have a few questions about this; Apart from the Notice to Complete, do I have any other options if I am still keen to go ahead with the purchase? (Is specific performance an option noting the parents have placed the caveat on the property and not the vendors themselves) Noting that the caveat has been placed on after contracts where exchanged, is there a time limit for the caveat to be settled? I appreciate any help, my wife kids and I feel very helpless and frustrated in this situation and just want to settle and move in. Thanks
The ONLY thing you should do is speak to your SOLICITOR, not a conveyancer. A caveat can be removed. It may be a settlement choice for the VENDOR to have the disputed sum held on trust by their solicitor for them to mutually resolve after settlement to avoid your solicitor claiming damages for breach / delay etc. Your solicitor should be handling this. That way you are uninvolved with their problem. Owners of a property cant place a caveat over their own title. Only others. But do they have a caveatable interest ? The vendors may be liable for damages if they sold to you indicating title was free and didnt disclose such an issue.
Did you lodge a caveat on exchange? There is a NSW case Black v Garnock from memory. The parents are probably arguing they are beneficial owners of the property in part, due to a resulting trust, and won't agree to allow settlement to proceed unless they get paid out on settlement. Their interest in the property would be higher than your interest. You could try to talk them into settlement with the proceeds paid into a solicitors trust account so they can argue that later between themselves. Might be easier to find another property
You need to find out what the actual hold up is, otherwise its impossible to figure out a good solution. Your conveyancing lawyer should be doing this. I hope you have one.
Note to self - if a divorce has been mentioned by the vendor's agent, put a caveat on the property before anyone else does.
