Q&A: Removing a caveat

Olly,
I’m wanting to know if you know a (trustworthy) lawyer that would be able to help me remove a caveat from my mum and dad’s property. Obviously there is a long story behind this but the basics are: The caveat was lodged @20years ago by my dad who used the house as collateral for 50k. My mum and dad divorced @two months after this loan was taken out and my dad left and now lives in oz. He made no payments after this time.

My mum (bless her soul) paid off the original ANZ mortgage (@15 years later) and when we went to remove their interest discovered that this caveat still existed — much to our surprise as we had forgotten about that loan.
I have tried to contact the place but found that they had resettled into new trust structures twice (as they were the Pacific Island Business Trust) currently operating as Pacific Business Trust. We have had no contact from this place for the last twenty years, no statements or letters or anything.

The lawyers representing them have been unable to find contract details or forms regarding this caveat. They simply left the loan to grow and [it] now sits at @100k.

My question I guess is, as they never pursued the loan and there seems to be no evidence ie, original contract in existence….is there a legal way i could just have it removed? The property (our homestead) has been stalemate for the last 20 or so years and rotting badly…. We (me and my mum) are wanting to remove my dad’s name, put my name in his place and raise a mortgage to renovate the house but…….this caveat is like a knife we can’t remove, so to speak haha….

Any advice, comments or help would be heartfeltingly appreciated…

Regards Hemi

Dear Hemi
I would have thought that any good lawyer could apply to the LTO and give your story and have the registrar remove the caveat after he has made all the necessary enquires.
Another way that used to be popular was to register a $5 mortgage on the property which meant the caveat would have to be lifted to do so. This method is frowned on but it has been used from time to time.
I invite other readers to submit suggestions to help Hemi and any one else in the same position as the situation is not uncommon.
Regards
Olly

Posted in Q&A | Tagged , | 9 Replies

9 thoughts on “Q&A: Removing a caveat

  1. Section 145 and 145A Land Transfer Act provides the mechanisms for removal of caveats.

  2. My lawyer , my sister and I have put a caveat on a property in Christchurch New Zealand but sadley my lawyer has died . How can we remove the caveat?

    Cheers
    Viv

  3. Get your new lawyer to contact the Land Transfer Office (LTO) and ask the registrar to remove the caveat.You will have to supply your lawyer with all the evidence first to prove your case. Olly

  4. Hi can you tell me what I need to do, I got a 2nd morgage which has a caveat on I paid it off last year and the loan company hasn’t taken it off, I can’t seem to locate them anywhere to ask them to remove it. I’m not sure if they went belly up.

  5. Hi Olly
    We were forced into liquidation after an employee stole from our business. We fought to pay back all creditors by working two jobs and selling a rental property. The chch earthquake hit and despite paying insurance all our lives we found that the bank cancelled the wrong house policy and our home had been uninsursed for over a year.
    We were declared bankrupt. The govt dept and the bank were really nice in their dealings with us but their is a seperate caveat on the house by a company i borrowed from a few years earlier, which was worded included “all after & aqquired property and the company are refusing to remove it. They say that they will have a claim on anything we own for the rest of our lives unless we pay them. Is this correct?

  6. Question – Is both a Private Individual Client Authority And Instruction For An Electronic Transaction form
    (Approved by the New Zealand Law Society and the Registrar-General of Land)
    emailed to your lawyer and the same document posted to your lawyer required to remove a caveat.
    I am over seas at the moment and paid my lawyer in Christchurch 2 months ago to have it removed. I found out by contacting LINZ that it has not been registered. I am now told by my lawyer that she needs both emailed and posted documents to complete the registration. Just a little confused by unclear instructions and delayed responses from my lawyer. Also thinking she could of emailed me back when she hadn’t received the posted document within two weeks of receiving the approved emailed document if both were required
    Thanking you
    Sandy

  7. I have a caveat on an apartment. I bought through blue chip which went under.
    I would like to have this lifted so I can sell it. I think the caveat has something to do with the guaranteed rent, as it is being managed.

  8. Hello , how can I remove a caveat from my house please – have been informed by bank that a caveat from a loan (finance company) that was paid more than 8years ago still exists – they didn’t remove caveat when loan was repaid and they are now dissolved (loan company no longer registered) how can I get the caveat of my certificate of title ??? Thanks in advance

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