In a commercial settlement involving several mortgages and caveats, what must happen in PEXA for the transfer to be lodged for registration?
Correct Answer
A) The discharges and caveat withdrawals must be lodged together with the transfer and new mortgage
In an electronic settlement, the discharges of the vendor's mortgages and the withdrawals of caveats are lodged in the same step as the transfer and the buyer's new mortgage. This keeps every instrument in the right order so the buyer and new lender get the priority they expect. Encumbrances that stay with the land, such as easements and covenants, are not discharged.
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During settlement, what is the correct order of events in an electronic conveyancing transaction?
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In a complex commercial property transaction involving multiple easements and restrictive covenants, the buyer's solicitor discovers a potential breach of a restrictive covenant that could affect the intended use. The contract is silent on this issue and settlement is due in 3 days. What is the most appropriate course of action?