Pang v Cao

In the Supreme Court of Queensland, Pang filed an application for an extension of a caveat lodged over property located at 123 Main Street, Springfield, and Cao cross-applied for the compulsory withdrawal of the caveat. Pang claimed that Cao had purchased the property on behalf of Pang, with an agreement that Pang would pay for the mortgage and holding costs. Pang sought an extension of the caveat after a dispute arose between Pang and Cao regarding the payment of these costs. Cao, however, entered into a contract to sell the property to a third party, leading Pang to cross-apply for the compulsory withdrawal of the caveat. The court was required to determine whether Pang had established a prima facie case for the extension of the caveat, and if so, whether the balance of convenience favoured the extension or if third-party rights should be protected by removing the caveat.

The court considered the criteria for extending a caveat, including whether there was a prima facie case and whether there had been an unreasonable delay in lodging the caveat. The court also examined the balance of convenience, weighing the potential prejudice to Cao against the prejudice to Pang if the caveat were removed. Given the delay in Pang's application and the existence of a contract to sell the property to a third party, the court concluded that Pang had not established a prima facie case for the extension of the caveat. Furthermore, the balance of convenience favoured the removal of the caveat to protect the rights of the third party. Consequently, the court refused Pang's application for an extension of the caveat and ordered its compulsory withdrawal.

In light of the above, Pang's application for an extension of the caveat was dismissed, and the caveat was removed. The court emphasised the importance of timely action and the need to consider the rights of third parties in its decision. The final orders included the dismissal of Pang's application for an extension of the caveat, the removal of the caveat, and directions for Pang to pay Cao's costs of the application.