The Verification of Authority policy requires legal practitioners, conveyancers and mortgagees to take reasonable steps to verify their clients’ authority to be a party to the instruments authorised by or under a client authorisation.
A caveat (derived from the Latin word for ‘beware’) is essentially a warning or caution that can be registered on the Certificate of Title to a property to prevent any further dealings with that property.
Developers that fail to comply with notifying the purchaser may (likely) be subject to substantial penalties. The maximum fine that may be imposed is 100 penalty units ($21,000) for individuals and 500 penalty units ($105,000) for corporations.