Caveats: A lesson for purchasers

The Issue

The Purchasers signed a Contract to purchase the property in question. However, months earlier, creditors of the Vendors had successfully sued the Vendors in respect of a debt which they owed. On the morning of settlement, coincidentally, the creditors obtained a Writ to enforce the judgment against the Vendors. The Writ entitled the creditors to seize the Vendors' property interests. Unaware of this development, the Purchasers proceeded with settlement but later found themselves unable to register their interest in the property.

The Court's Decision

After a long and expensive legal battle, the High Court ruled in favour of the creditors. Not only were the Purchasers without their new home, but they were also ordered to pay some of the creditors' legal costs!

How Sharrock Pitman Legal can help

This unfortunate situation would have been avoided had the Purchasers taken the extra step of lodging a protective Caveat against the property after they signed the Contract of Sale. The Caveat would have prevented any other dealings with the property without their consent. At Sharrock Pitman Legal, it is our practice to always lodge a Caveat when acting in the interests of our Purchaser customers. It is an inexpensive, yet invaluable way of protecting your interests.

If you require assistance, please give us a call on 1300 205 506 or send an email to sp@sharrockpitman.com.au.

The information contained in this article is intended to be of a general nature only and should not be relied upon as legal advice. Any legal matters should be discussed specifically with one of our lawyers.

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