In property transactions, timing and coordination are crucial to ensuring that all parties remain protected throughout the process. Recently, a situation underscored in our office this point vividly when a suggestion to withdraw a Purchasers caveat by being invited into the workspace proved invaluable.
BACKGROUND-
- Vendor sold property to our Purchaser.
- Purchaser lodged a caveat.
- Vendor was obtaining bridging finance.
- Purchaser’s caveat was asked to be removed.
Fortunately, by coordinating the caveat withdrawal to coincide with the last settlement of the day, the protection gap was minimized. As a result, clients will only face a brief overnight period without the caveat in place. The caveat can be promptly reinstated the following day, ensuring continued protection and maintaining the integrity of the transaction process.
This experience highlights the value of strategic planning and communication in managing property transactions. By suggesting and implementing the withdrawal within the settlement framework, we safeguarded our client's position and avoided a potential risk period. This approach not only reassured the client but also demonstrated the effectiveness of proactive and thoughtful management in complex transactions.
The Vendor's purchase was delayed, creating a potential vulnerability. Had the caveat been withdrawn separately from the primary settlement, there was a risk that the client would have been exposed without protection from at least Thursday or Friday of the previous week. This lapse could have led to significant complications, potentially affecting the client’s interests.
Author: Veronica McFadden
