QLD Caveat process for Qld property

[Sonlyme]

1. The Registrar of Titles sends the formal notice.

2. It could, but it's unlikely. If whoever is doing the conveyance for the buyer is prudent (and they're begging for a professional indemnity claim if they're not) will do a 'check' title search on the day of settlement which will show up the caveat. They will then strongly advise the buyer not to settle until the caveat is removed. If they had a lender, the lender would refuse to advance funds, etc. It is possible the title search could be missed, or the buyer could elect to settle anyway - but I've never seen it happen.

3. Write to the agent. Refer to the deed, but don't produce a copy if there's any sort of confidentiality clause in it. Otherwise you could be in default of the deed and that could erode your position. Also refer to the caveat, state it has been lodged, and you can even give them the dealing number if you want. That should be enough for them to go to the solicitor. In fact, just breathing the word 'caveat' to a real estate agent tends to be enough, especially when their commission is under threat.

Quick question Rob - I've been online again this evening on the Titles office web page to check the Caveat status using the Dealing number.

The last time I checked the status it said "lodged". I've checked again this evening and there is a message stating the Dealing number "does not appear to be valid".

There is no longer anything noted in regards to a caveat. Is this normal? Could it be that the status has moved from lodgment to now being registered therefore the Dealing number no longer applies? I am concerned as the Dealing number no longer shows any info. Please can you advise Rob?

TIA for your ongoing help in trying to understand this process.

 

[Rob Legat - SBPL]

A registered document, including a caveat, always keeps its dealing number. The easiest way to see if it is still on title is to do a title search.

Otherwise, if the dealing number isn’t showing up, I’d say that either:
- Titles Office’s systems aren’t working properly;
- You’ve made any error in the search; or
- The Registrar has rejected the caveat - which there is a discretion to do.

 

[Sonlyme]

A registered document, including a caveat, always keeps its dealing number. The easiest way to see if it is still on title is to do a title search.

Otherwise, if the dealing number isn’t showing up, I’d say that either:
- Titles Office’s systems aren’t working properly;
- You’ve made any error in the search; or
- The Registrar has rejected the caveat - which there is a discretion to do.

Thanks Rob your feedback is invaluable thank you.

The Titles office search seems to be working so that's a concern because I've re- keyed the details and unlike the many occasions before, it's now showing as the Dealing number no longer working. Given you've now told me this number is applicable regardless as to whether the caveat is lodged or registered- then it seems at this stage the Registrar may have rejected the caveat. This is a huge surprise as there is a Deed of Agreement lodged between both parties where reference to the property is clearly stated as the repayment plan. This is a huge worry. I will contact the titles office tomorrow to find out why.

Thanks again Rob, you've been a wealth of knowledge thank you.

Edit - I did a title search on the day the caveat was lodged and it stated a caveat was lodged. Not sure what it will state now.

 

[Sonlyme]

A registered document, including a caveat, always keeps its dealing number. The easiest way to see if it is still on title is to do a title search.

Otherwise, if the dealing number isn’t showing up, I’d say that either:
- Titles Office’s systems aren’t working properly;
- You’ve made any error in the search; or
- The Registrar has rejected the caveat - which there is a discretion to do.

Courtesy update Rob - just to let you know it WAS a glitch in the titles system. The lodged caveat is still showing. Great news, panic over - you were right!

Cheers again Rob, fingers crossed it goes into registered soon.

 

[Sonlyme]

Hi Rob a further question if I may regarding the Caveat...

By now the caveat that was lodged SHOULD have gone from "lodged" to "Registered" however it seems my Solicitor did not initially provide the correct information required for the Tiles office. The status moved from lodged to "Abeyance" whilst further additional information was provided by my Solicitor.

The Titles office sent a further email today to advise that my Solicitor has still not provided what they asked for and that what was sent yesterday was not what they required. In other words despite my Solicitor sending further information yesterday my Solicitor has still not provided them with the lodgment information they requested - so it needs to be provided and re-sent again. This will further delay registration.

My question is....will this mean settlement could go through and the proceeds of the sale be transferred to an overseas bank account and I can wave bye bye to what was agreed in the Deed of Agreement?

 

[Rob Legat - SBPL]

Per my initial post: a caveat takes effect the moment it is lodged. In terms of putting the brakes on settlement, registration is irrelevant.

Also as previously pointed out, it won't of itself stop settlement - it is not a physical bar to the buyer handing over funds, and their ultimate transfer. While the caveat is on the title (registered or unregistered) it will only stop other documents from being registered, such as a transfer of title. If the buyer is prudent, this is enough for them to refuse to settlement and there are grounds for them doing so under the standard REIQ contract.

 

[Sonlyme]

Per my initial post: a caveat takes effect the moment it is lodged. In terms of putting the brakes on settlement, registration is irrelevant.

Also as previously pointed out, it won't of itself stop settlement - it is not a physical bar to the buyer handing over funds, and their ultimate transfer. While the caveat is on the title (registered or unregistered) it will only stop other documents from being registered, such as a transfer of title. If the buyer is prudent, this is enough for them to refuse to settlement and there are grounds for them doing so under the standard REIQ contract.

Once again thank you Rob - my concerns seem ill founded as like you say now the caveat is lodged it's basically a red flag to the buyer. My Solicitor has managed to contact their Solicitor and has forwarded the Deed of Agreement and advised this is the reason for lodging the caveat. Hopefully their Solicitor will advise the other party the only way for the caveat to be lifted is to agree to transfer the proceeds of the sale via both Solicitors trust funds and deposit into my account the amount stated and agreed as per the Deed of Agreement.

Thanks again Rob for your wealth of knowledge and helping to understand this minefield- it's very much appreciated.