Coast Reo v O’Brien [2006] NSWSC 613

This involved a supply agreement with a charging clause in it. Pursuant to the charging clause a caveat was lodged over two properties partly owned by the debtor. A lapsing notice was served and these proceedings were brought to extend the operation of the caveat.

Various technical arguments were raised as to why the charging clause was invalid, on all of them the Judge held that they were arguable both ways and so the matter had to proceed to trial. On the argument that the caveat misdescribed the interest His Honour Justice Palmer held:

It seems to me that this is a case in which possible invalidity of the caveats occasioned by infelicity of expression ought to be relieved by the application of s.74O(2) of the Real Property Act 1900 (NSW). Accordingly, I think the proper course is to let the present caveats lapse but to grant leave to the Plaintiff immediately to lodge substitute caveats in proper form.

Scroll to Top