In December 2016, Priority Notices were introduced in Victoria as part of electronic conveyancing process.
It’s a notification to the world of an intended dealing regarding land. It temporarily acts as a caveat to prevent the registration of any other transactions/dealings on the property. It is used by the purchaser of land to highlight their interest in the property before settlement can take place and have the property registered in the purchaser’s name. The contract of sale creates this right against the property. When a contract of sale of land is signed, the purchaser now has certain rights in respect of that property.
What are the benefits?
- Protects the interest of the parties to an intend dealing, usually the purchaser before settlement can take place.
- To alert and interested party of the intended dealing (usually the transfer of land to the purchaser) when the priority notice is lodged over the land.
- To minimize the risk of fraudulent or unintended lodgements against the property, this being the most important benefit.
What is the Duration of a Priority Notice
A Priority Notice is effective for 60 calendar days from the day after the date of lodgement. This can be extended only once for an additional 30 days if the application is made while the notice is still in force. The notice will also expire once the intended transaction, such as the transfer to the purchaser, is registered.
What is the cost of a Priority Notice
While a caveat registered on a title will cost you approximately $100 , a Priority Notice will only cost you $30.31 AUD.
Some key facts about Priority Notice:
A Priority Notice must be lodged electronically through PEXA, or Sympli (when it becomes fully operational).
The Priority Notice is then lodged with the Registrar of Titles at the Victorian Land Registry, and once lodged it will appear on any search of the Register.
A Priority Notice will not prevent the registration of caveats, warrants and land tax charges.
It should be noted that a Priority Notice cannot be amended once lodge, if error is made the notices must be withdrawn and a new one lodge
For more information, please get in touch with us.
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