A lender lodged a caveat over an additional property owned by the borrower but his mortgage documents did not support it.
The borrower alleged that the lender’s caveat hindered his sale efforts to repay his debts and that he was forced to sell the mortgaged properties at fire sale prices. These allegations were dismissed by the District Court judge. The borrower appealed.
The Appeal Court also held that the caveat had been lodged by the lender without reasonable cause as required by section 74P of the Real Property Act however the borrower failed to recover any loss because he failed to show that his failure to sell was caused by the caveat lodgment – and he did not seek its withdrawal or take steps (as he could have) to cause it to lapse.
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