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Agreement Reached But Caveat needs to come off

Have a couple of clients - he is going to pay her out if she leaves the house to him.

She has a caveat on the house and will lift it off after agreement is signed. Agreement states she will lift it. He wants her to lift it before he signs?

My thinking is that he should sign agreement because it says she will lift caveat upon signing. he cant pay her though until the caveat is lifted for some reason?

need help with this one.
There is not enough information to answer this question in full.



Monti

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donga said
Have a couple of clients - he is going to pay her out if she leaves the house to him.

She has a caveat on the house and will lift it off after agreement is signed. Agreement states she will lift it. He wants her to lift it before he signs?

My thinking is that he should sign agreement because it says she will lift caveat upon signing. he cant pay her though until the caveat is lifted for some reason?

need help with this one.
  Be mindful of the wording of the Consent Orders or BFA. They must be able to be enforced and therefore must be quite specific. An Order " that the wife will lift the Caveat" won't cut it.

Try inserting immediately after the clause dealing with the signing of the Transfer something like;

That within 14 days of the date of this Order/Agreement the wife shall at her own expense prepare and sign a Withdrawal of Caveat in a form acceptable to the (name of the appropriate Land Titles Registrar in your State) and shall deliver the Withdrawal of Caveat to the Husband on or before the date of settlement of the Transfer referred to in paragraph X above.

You should also consider a s106 Order in the event that she does not sign it, and also provision for an adjustment in favour of the Husband from the money due to the wife a sum sufficient to register the Withdrawal of Caveat ($92.00 in NSW).

With these in place there is no reason for the Husband to insist on a withdrawal prior to signing the Order/BFA. The bottom line is no withdrawal of Caveat, no money for the Wife. That should be sufficient incentive.
Danga said
he cant pay her though until the caveat is lifted for some reason?

need help with this one.
The only reason I can think of is that he's securing a loan against the property in order to make the agreed settlement payment to the wife. The lender involved would want clear title to the property in order to release funds to him. Therefore it would be a condition of settlement of the loan that the caveat is lifted, generally "at or before settlement" is the wording in the loan terms and conditions. If there is a solicitor acting for the wife, they can be involved with the loan settlement. Hubby would have to send cheque directions to the bank so the removal of the caveat can be simultaneous with settlement and clear funds advanced to the wife's solicitor.
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