In Vic – Are purchasers caveats really required now?

[maninmelb]

With mandatory electronic conveyancing in Victoria , and this containing title activity checks. Are purchasers caveats really required or now just overkill ?

[GrazielaEidelson · Accepted solution]

Hi Andrew,

Purchasers are not obliged to lodged caveats, but it may be a good practice on a case by case basis.

Imagine, as an example, that the Purchaser and Vendor entered into a contract for settlement in 6 months time and the vendor got the deposit released. The vendor, then, re-sells the property to a third party in good faith. By the time of settlement with the first purchaser, the vendor is no longer the owner and it is bankrupt or in liquidation. The unfortunate Purchaser, in this case, is an unsecured creditor.

The priority of registration may become an issue... another example is Osmanoski v Rose [1974] VicRp 64; [1974] VR 523 98 October 1973).

There is a multitude of examples.

Probably the best response is for the party to get legal advice appropriate to the specific circumstances of your transaction.

Cheers

Graziela