15/10/2026
When Caveats and Mortgages Don't Just Delay Settlement... They Can Kill the Deal
Many people understand that caveats, mortgages and other registered interests on title can delay settlement. What is less understood is that they can also completely prevent settlement from taking place.
Recently, I encountered a matter where the title was burdened by:
• 2 registered mortgages
• 3 caveats
• A court order affecting the property
As settlement approached, it became apparent there would not be enough sale proceeds available to satisfy all parties with an interest in the land. To complete settlement, every mortgagee, caveator and affected party needed to either be paid out in full, agree to a negotiated payout, or otherwise release their interest. Unfortunately, there was insufficient money available and the various parties could not reach agreement on how the available funds should be apportioned.
The result? Settlement could not proceed.
Not because the buyer was unwilling or unable to settle. Not because finance failed. Not because either party wanted to terminate the contract.
Settlement simply became impossible because clear title could not be provided.
In this situation, legal action was not a practical solution. The issue was not a dispute that could be quickly resolved through litigation. The fundamental problem was that there were more claims against the property than available funds to satisfy them, and no agreement between the claimants.
Ultimately, the purchaser had no recourse. The contract could not be completed, settlement could not occur, and the buyer was forced to walk away from the property.
Conveyancer Tip
When acting for purchasers, always review the title and alert clients when multiple mortgages, caveats, court orders or other encumbrances appear on title.
While many transactions with registered interests settle without issue, purchasers should understand the potential ramifications if those interests cannot be released at or before settlement.
Where there are numerous charges on title, there is a genuine risk that:
✅ Settlement may be delayed
✅ Settlement may require complex negotiations between interest holders
✅ Settlement may become impossible if releases cannot be obtained
A crowded title should always prompt further investigation and a discussion with your client about the risks involved.
Sometimes the biggest settlement risk is not the buyer's finance or the seller's paperwork. It's what is already sitting on the title.
