All residents of Iluka are required to be members of the Iluka Home Owners association and each property has a Caveat placed over it. A Caveat is warning recorded on a Certificate of Title which indicates that another party (the caveator) claims an interest in the land. In this case the caveator is the Iluka Home Owners Association for the purposes of ensuring compliance with the Covenants.
When a property is purchased in Iluka, the Buyer is required to sign the Membership Application form and ensure that their Settlement agent pays the Iluka Homeowners Association the $110 one off membership fee.
The IHOA Caveat which encumbers the land does not need to be withdrawn as it is standard for all properties in the area to be encumbered by a Caveat to ensure that all owners are members of the IHOA, however if your bank unnecessarily require this, the Borrower is responsible for the costs to withdraw the caveat and re-lodge following registration of the new mortgage. These costs are approximately $700.00.
None of the major banks in WA require this caveat to be removed. They have been encumbering properties for the last 19 years or so.
This caveat does not secure any money and does not have a priority issue with any widely used Bank who understands the nature of the caveat.
For further information about caveats, contact CWS Lawyers:
Note that there are some statutory costs and fees associated with processing a caveat. Please check with your settlement agent for details.