Caveats
What is a property caveat?
A property caveat is a warning or caution, that is registered on the title of a specific land.
You may only be able to lodge a caveat once, so best to do it properly
What is the purpose of a caveat?
If a person has an unregistered (equitable) interest in a (real) property, they can consider lodging a caveat to provide notice to the whole world of their interest, and if desired, to prevent further dealings with a (real) property until the interest can be registered.
Types of caveats
There are two types of caveats
- An absolute caveat
- A permissive caveat
Absolute caveats prohibit any subsequent registrations of interest with the land.
Permissive caveats can allow further registration, provided that they are made subject to the claim of the caveator (the person who lodged the caveat). Further, a permissive caveat can require written consent from the caveator’s should any further dealings require registration.
Claim or interest must be connected to the land
When considering lodging a caveat, the interest being claimed must be connected to the land.
If you are seeking to enforce an interest that is not connected to the land, such as recovering a debt, a caveat may not be an appropriate remedy. If you are in doubt, it is best to seek legal advice before taking any action.
How can you remove a caveat?
if you object to a caveat that has been registered against your (real) property, you may make an application to the Registrar-General for its removal.
If the process is followed correctly, the Registrar-General will send a notice to the person who lodged the caveat (the caveator) and place them on notice. The notice will provide the caveator 21 days, and during these 21 days, the caveator must make an urgent application to extend the caveat so that it is not removed by the Registrar-General.
Liability for wrongfully lodging a caveat against someone’s (real) property
A person who lodged a caveat without necessary grounds may be liable to pay compensation.
Can you lodge more than 1 caveat on the same (real) property?
No. A further caveat cannot be lodged by the same person in relation to an interest previously claimed, without an order from the Court.
Important notice:
This article is intended to provide general information of an educational nature only. It does not have regard to the legal situation or needs of any reader and must not be relied upon as legal and/or conveyancing advice. As this information has been prepared without considering your objectives, situation or needs. You should, before acting on this, consider the appropriateness to your circumstances and make enquiries as to whether you require independent legal, conveyancing and/or accounting advice.
View our disclaimer for further information.
Contact us today
J&A offers fixed fees, no hidden extras, and your own dedicated [registered] conveyancer for each and every transaction,
Contact us today to discuss how we can assist you with your requirements.
