Having Australia’s financial institutions onboard is essential to the success of Homes for Homes.
The need for support
All people have a right to safe and secure accommodation, yet Australia has more than 122,000 homeless people and a chronic shortage of more than 600,000 social and affordable houses. Due to a severe lack of suitable funding, the shortage is projected to grow to over one million houses by 2030. The flow-on effects are making this one of Australia’s biggest social issues but Governments cannot solve this alone.
The role you play
There are strong social and economic imperatives to address the country’s shortage of social and affordable housing. This is why we are speaking with you about the important role we need you to play.
Financial institutions are fundamental in supporting the dreams of everyday Australians through enabling homeownership. Now Homes for Homes is playing a similar role in achieving that dream for many disadvantaged Australians who are at risk of, or who have experienced, homelessness. But we cannot do this without your help.
Over the past 10 years Homes for Homes has consulted, briefed and worked closely with key stakeholders in the property, lending and legal industries and that has continued to this day. Homes for Homes is delighted to have strong and continued support from our friends in the financial sector led, we are very pleased to say, by the Australian Banking Association.
The caveat and how it works
Herbert Smith Freehills, Minter Ellison, Clayton Utz and Corrs Chambers Westgarth have, and continue to, provide valuable pro bono advice and guidance to Homes for Homes. Homes for Homes recognises a property’s participation by registering a caveat over the land title. The type of caveat lodged by Homes for Homes will vary state by state based on the legislative framework within the state or territory the property is located but are all guided by the following principles:
- The caveat only prohibits transfer and effects no other dealing.
- Allows commitment to transfer with consent or subject to caveator’s claim.
- Ranks behind other charges/dealings.
- Captures donation in settlement/conveyance process.
- Is voluntary and removable by property owners at any time.
In each state and territory
|Transfer of land.
(Homes for Homes will withdraw the caveat prior to settlement and will relodge post settlement.)
|The recording in the Register of any dealing other than a plan affecting the estate or interest claimed by the Caveator (in relation to the transfer of land only).
(Note: Homes for Homes provides consent.)
|Prohibiting Transfer without Caveator’s consent (Note: Homes for Homes provides consent.)|
|Forbids the registration of any instrument affecting the Estate and Interest to the Extent of the Prohibition as specified.
Extent of prohibition: Unless the instrument is expressed to be subject to the Caveator’s claim.
What you can do to help
Homes for Homes seeks the continued support of the banking sector in the following ways:
- Where the bank is either the incoming or outgoing mortgagee, allow settlement to proceed with the Homes for Homes caveat in place creating an ongoing promise;
- Integrate Homes for Homes positively into operational and mortgage/lending processes such that the bank will not obstruct a sale due to a property’s participation in Homes for Homes;
- Educate bank staff on the impact Homes for Homes is making in addressing Australia’s social and affordable housing crisis, creating a positive experience for mortgage customers participating in Homes for Homes; and
- Consider ways the bank can help expand the impact of Homes for Homes.