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Buying a Property - Protect against new trap between exchange and completion |
Practical steps can be taken to protect purchasers during the time between exchange and completion of purchasing a property. |
In a recent case, purchasers entered into a contract to buy a rural property, but he day before settlement was scheduled a firm of accountants obtained a writ on the property of the vendor for unsatisfied creditors. |
The writ was registered a little before settlement. In the following days the purchasers attempted to register the transfer of the property but were advised that the Registrar-General had declined the registration because of the prior registration of the writ. The sheriff of NSW was then empowered to take possession of the property and to sell it to cover the judgment debt owed to the creditors. |
Practical steps which can be taken to protect purchasers during the time between exchange and completion of a contract for sale are lodging a caveat (a legal notice that no step is be taken that affects the contract without informing the purchaser) and completing a final search of the Land and Property Information (LPI) register at the time of settlement, or as close to the time of settlement as possible. |
