If you have a registered security to protect a debt you cannot shift the security to another property without going through a proper process.

I was contacted recently by a client regarding their security registered over one of their customer’s properties.  The customer was a director of a number of companies and wanted the security which was currently registered under the name of one of his companies to be transferred to another property which was registered to another company.

I was contacted by the customer’s solicitor advising that the matter was urgent and that they required confirmation from our client that they would consent to a withdrawal of the caveat over one of its properties in exchange for a new caveat to be registered over a different property.  If this is agreed to it is necessary for new loan documentation to be signed by the customer to support the caveat being registered.

The credit account application and agreement to mortgage also must be in respect of the property which the caveat is to be registered over.  A failure to take these steps would have seen the security become worthless and the potential loss of tens of thousands of dollars should the customer default.