The Supreme Court has power under s 74MA(2)(b) of the Real Property Act 1900 (NSW) to order the Registrar-General not to accept for lodgement caveats that purport to prohibit a mortgagee's exercise of power of sale, but this power should be exercised sparingly and ordinarily limited to caveats that specifically purport to affect the mortgagee's power of sale. A caveat that does not specifically prohibit mortgagee dealings cannot prevent registration of a transfer under s 74H(5)(g), and a purchaser from a mortgagee would be in breach of contract by refusing to settle because of such a caveat.
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