I purchased a property in mortgagee auction and title shows a Bank as interested party along with a Caveat.
If it were me, I would engage a Solicitor to handle the conveyancing. They will ensure that the caveat is removed when the property is transferred into your name.
My question is - to settle for this property with caveat, will the Bank get caveat removed and then settle.
I am guessing here but it might be that the caveat can be removed by paying off a debt, this will be taken out of the money that the vendor receives (you won't have to pay any extra). Just prior to sale you should receive a settlement statement from your solicitor that explains where the money is going. For example with a purchase with money owing to the council, instead of giving all $500k to the vendor, there was a line in the settlement statement saying that $50k was going to the council and $450k was going to the vendor. Your solicitor will be able to manage this for you and will not allow the transaction to be completed unless you are getting clear title.
Further, if the property is finally transferred in my name after removing existing caveat, can someone else again lodge a caveat against my property for the previous owner after transfer of title in my name even. Can someone please help me in reducing my stress..
I am not a lawyer, but I don't believe that they can legally do this (at least, if they do then it is illegal and not difficult to have the caveat removed). When you engage a solicitor to do your conveyancing, they will be able to answer this question for your specific case.
And why didn't you do a title search on the place before you bid on it?
Do you consider this normal? When I was bidding at auctions I got my solicitor to review the contracts before bidding, he did this at no charge. Whilst I have a reasonable relationship with my solicitor, it's nowhere near good enough for him to be paying for title searches and not passing on the costs to me, so I am assuming that no title search was done. He did not mention or suggest a title search prior to bidding. Is this something that you would normally do?
