All Topics / Finance / CAVEAT ON PROPERTY AFFECTING MORE LOAN FUNDING

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  • Profile photo of Enzo2010Enzo2010
    Participant
    @enzo2010
    Join Date: 2010
    Post Count: 4
    June 8, 2010 - 7:44 am

    Hi guys,

    Quick question. If I have a loan with a lender and they are first mortgagee and then a caveat is lodged and now I want additional monies from the bank would they do it?

    Would they still rank first even with additional funds lent to me or are they at risk of being 3rd ranking for new funds.

    Look forward to hearing from you.

    Thanks

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 8, 2010 - 9:17 am

    No. a caveat will prevent further dealings. It would need to be removed and lodged again. 1st mortgages will have priority over caveats.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    June 8, 2010 - 11:07 pm

    A caveat only prevents you dealing with the property without the caveator's knowledge. You will need to seek the caveator's consent to lift the caveat in order to register another dealing before they put the caveat back in place.

    Is the caveat with the bank or with a third party?

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