Money to Pay Caveat
Money to pay caveat or getting financial help for a caveat placed on your property is important. If someone has placed a caveat on your property, you may need to find money to release or remove it. A caveat makes it difficult to sell your home or refinance it, and may also put you in jeopardy with your bank.
A caveat on a property is a serious matter, you may need money to pay the caveat off
A caveat can prevent the owner of a home from dealing with the sale or refinance of it until it is resolved. LINZ explains more about what a caveat is about, including what to expect and the notices you may be given. Before you can sell or refinance the home, you usually need to find a way to remove the caveat.
Reasons why your property might have a caveat
There are many reasons a property might have a caveat on it. Here is a non exhaustive list
- Unpaid Bills: If you’ve owed money to a financier or another company in the past and not paid the bill, they may lodge a caveat to help secure their interests.
- Loans You’ve Taken Out: You might have taken a loan or finance in the past that allows a finance company to caveat your property. That means that you for example can’t sell the property normally without resolving your affairs with them.
- Marital Disputes: When people split up or are in the process of a divorce or separation, a caveat might be placed on the property.
- Ownership Disputes: Sometimes the ownership of the property can be disputed and people can lodge a caveat to help fight for their right or interest around it.
To lodge a caveat, the person or party lodging it normally needs to have a caveatable interest.
Financial help to remove a caveat or getting money to pay the caveat
Usually you need money to remove a caveat and consequently repay the party or organisation that you owe money to. Typically a bank will not allow you to borrow money from them to repay a caveat on your property.
However a professional mortgage broker or financial adviser who specialises in mortgage rescues and other types of lending issues might be able to assist you to find funds or restructure your mortgage to repay a caveat. You may also need financial assistance with your home loan.
Example: The Jones family have a home loan with a bank. They borrowed some money and didn’t pay it back, and have a caveat on their property by that finance company. Their bank is unlikely to lend them money to pay the caveat off, and may demand it is removed urgently. However they can approach a mortgage broker who can find them a new lender and might be able to find them money to repay the caveat.
Get legal advice if you have a caveat on your property
It’s usually important to get high quality legal advice urgently if you have a caveat on your property. It’s a serious matter, and also raise questions by the bank that gives you the mortgage on your house; they may take the matter very seriously and mention you are in default of your mortgage.
That can lead to further penalties and costs, now charged by your bank around the situation. It can also run the risk of losing the home or losing possession of it, and perhaps being taken to mortgagee sale.