If a caveat is lifted , am I (as I've been told) still covered for 7 days afterwards while I wait to receive payment for money owed (which is the reason the caveat was initially put into place)? A loan or construction loan is being taken out and money used to repay the debt, but I am told I need to sign to lift the caveat so the loan can proceed and that I'll still be covered for 7 days under the caveat laws.
NSW Caveat Laws After it is Lifted?
- Thread starter Justjulie82
- Start date
Sorry, I am not in NSW and do not know the answer to your specific question.
I do note however that a withdrawal is not the only way forward. As caveator you can consent to the loan being placed on the title without withdrawing your caveat.
I do note however that a withdrawal is not the only way forward. As caveator you can consent to the loan being placed on the title without withdrawing your caveat.
What you have to take into account is the borrowing capacity of the debtor. By removing the caveat you are effectively removing your debt from consideration by the lender? If things go wrong, the lender will be recovering their money, and probably your money as well!
The reason why the OP is considering lifting the caveat is so the other party can get a loan to pay out the caveator, amongst other things. No lifting = no loan = no payment = catch 22.
Hence my suggestion.
Hence my suggestion.
Well your suggestion will only work if the borrowing capacity is there despite the debt to the OP.
There is no catch 22, there is a failure of the debtor to pay an amount owed. And now the debtor is asking the OP to take risk with no guarantee that they will pay them in the end even if they do get the finance!
Your premise is wrong. The debt owed to the OP is not relevant to the bank, though should be disclosed to the bank. The bank only cares about security and ability to repay.
As it stands no mortgage can be registered on title because of the caveat, not because of the size of a debt. Once caveator agrees to mortgage then problem disappears.
As it stands no mortgage can be registered on title because of the caveat, not because of the size of a debt. Once caveator agrees to mortgage then problem disappears.
Say what? I dont know where you get that idea from? Banks want to know how many freckles are on your arse before they will give you finance!!! (hyperbole)
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