NSW Implications of a Caveat over Property and on the Body Corporation

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

EmmaG

Active Member
4 March 2018
11
0
31
Hoping for some opinion on property dispute between two siblings.

Sibling 1 loaned money to Sibling 2 and as part of the agreement Sibling 2 could repay the money + interest and there was an option for Sibling 1 could come in on the property at a latter date if they wished to - for a further investment. This option was never exercised.

Sibling 2 sub divided the property to create further value and undertook a massive renovation ( at their expense). Sibling 1 never contributed any further monies to properties over the years.

Out of goodwill, and to ensure that Sibling 1 was fairly compensated for the loan, Sibling 2 offered up one Lot to Sibling 1 which was agreed to by both parties. Sibling 1 started earning rental income from the lot for a few years whilst steps were being taken to finalise the renovations and then transfer the lot to their name. This process was taking time and got caught up in some government red tape ( completely out of our control).

Sibling 1 grew increasingly hostile and impatient and started to demand very personal information like wills, tax returns, debt positions and income statements. We refused and asked for what purpose. We believe that the request for information is a witch hunt to further build their legal case. They have repeatedly threatened to take us to court if we did not offer up 10 years of record keeping and personal information. We've put forward mediation on a number of occasions to no avail. The communication is very hostile and their actions outside of the matter have been incredibly malicious, vengeful & defamatory.

Sibling 1 has now placed a caveat over both lots. The lots form part of a strata. We've not received the caveat from the Registrar either so we have no idea of what grounds they are lodging their claim but the title search shows up that the caveat is in place. They are claiming the caveats will impact the body corporate now too.

My questions are as follows:

- Does the caveat give them a say in the affairs of the body corporate or the decisions it makes about the overall strata? ( they are not on the owners corporation) .

- Does the caveat give them the right to make decisions about things we do to our own lot? For instance, if decided we wished to continue to complete the approved DA or rent out our home?

- In the most recent demand, by personal email we have been notified of the caveat and that have 5 days to turn over this information or they will take the matter to court. This time period of 5 days is unreasonable and we've not even had a chance to get a lawyer. Would the courts consider this vexatious and unreasonable?

- How does the court view threats and demands for personal info before a matter has even got to court?

- The caveat now stops us from being able to transfer the lot to Sibling 1 as per the agreement. Can the caveat be overturned if it can be shown that its being used maliciously?

Any opinion on the above would be greatly appreciated.

Regards
EmmaG

-
 
Last edited: