LoansDirect Blog
Caveat Loans

Here’s a Refresher for You on Caveat Loans in Australia

November 9, 2015

A caveat is a registered dealing on a Certificate of Title by a 3rd party that claims to own associate interest or right within the property for instance if cash is owed to a 3rd party. If a Caveat is registered with the Land and Property info (LPI), it’ll defend the interests of the third party.

  • Formally withdrawn, caveat is achieved by the party or their representative lodging a ‘Withdrawal of Caveat’ and lodge it personally at the Sydney workplace of the LPI in conjunction with the lodgement fee.

  • Caveat can be removed by an order of court and once again, this must be logged at LPI with suitable lodgement fee in person.

  • A caveat can lapse after the lodgement of an “Application of Lapsing Notice”.

  • Another methodology is for the party who holds the caveat by giving a written consent for the registration of a further dealing. During this instance, the caveat can stay on the hold with the notification of the written consent for the registration.

Very importantly, it is said that the LPI has the authority to reject a caveat based on many reasons that are outlined on the website of LPI.

Many people opt for short-term fast caveat loan for following reasons –

  • Pay off an overlooked or overdue tax debt
  • Fund a brief fall on a settlement
  • Providing cash flow due to unexpected circumstances
  • Providing advance on any property sale or pending refinance

In addition, there are 4 things that can stop a short-term caveat loan application from settling –

  • No loan is funded if the client doesn’t have a specific business purpose therefore, the term Business Purpose must be genuine and reliable.

  • Before allotting the Property Value, it is mandatory that the applicant must have an idea of the realistic value of the assets.

  • Thirdly, Debt Level is very critical because many applicants don’t realize their finance are secured by their assets. Thus showing increase in debt level.

  • There must be a viable Exit Strategy because short caveat loan are for short time period.

More than $75 million AUD
disbursed in loans!