Michael v Michael [2012] NSWSC 1216

A wife sought to extend time on a caveat she registered on her property whilst the Family Court was determining her divorce property settlement.

The court had on two previous occasions extended time on the caveat, the most recent of which prevented the caveat from lapsing without order of the Supreme Court, Family court or the caveator’s consent.   

The lender exercised its power of sale under mortgage, after the wife defaulted on her mortgage payments.

Though the property had not settled, the Registrar-General foreshadowed the lender would have difficulty in registering the transfer to the new purchaser without a court order effecting the lapsing of the wife’s caveat.

The lender requested to be joined to the wife’s proceedings seeking confirmation of priority of their mortgage above the wife’s caveat and an order that the caveat lapse immediately.

In admitting the lender to the proceedings, the court found that the lender’s registered interest held priority over the wife’s caveat in the absence of “any challenge to its validity, or any attack on bona fides or conduct of the bank” and ordered the wife to withdraw her caveat immediately.

Click here to read the full jugdment.

Scroll to Top