A claim under s 74P of the Real Property Act 1900 (NSW) requires proof not only that the caveat was lodged without reasonable cause (applying the 'honest belief based upon reasonable grounds' test) but also that the claimant sustained pecuniary loss 'attributable to' the lodgement. A claimant who declines offers to purchase and fails to take steps to negotiate withdrawal of the caveat or cause it to lapse may fail to establish the necessary causal link. Where a lender applies sale proceeds across multiple loans, miscalculation of the amount owing on one loan may affect the outstanding balances on all loans.
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