What is a Caveat?
A caveat is a legal tool that enables you to register a notice on a title for a property.
Fundamentally, the caveat acts as a formal warning to the public that there is an outside interest on the property. Registering a caveat over a property will prevent the proprietor on title from transferring the property or dealing with it in any way until the caveat is removed.
Registering a caveat is a cost-effective way to protect your interest in another’s property.
However, in order to prevent the abuse of this legal tool, the law imposes a number of requirements prior to making you eligible to have a caveatable interest.
At Settlehub, we are well versed in the legal requirements to register a caveat. Further, our expertise extends to identifying caveats lodged out of the scope of the law and assisting in discharging them.
Looking to register a Caveat?
We can assist in managing caveats in the following instances:
- Registration of a caveat pursuant to an express agreement with the owner of the property.
- Registration of a caveat to secure a debt you have advanced in relation to another’s property.
- This would usually be used where you have advanced monies towards the purchase of a property but don’t have your name registered on the title.
- Otherwise, it could be where you have lent monies to an individual who used those funds towards making improvements to the property.
- You have an equitable interest in the property and wish to establish your rights in the property. This can arise in instances such as:
- When you are separating from your former spouse and are not on the title for property owned by them.
- When you have an interest in the estate of a deceased family member and are not on the title.
- Assist in withdrawal of caveats you have lodged.
Has someone registered an interest in your property illegally?
If you have discovered that someone has registered a caveat on your property without a proper basis, we can help in the following instances:
- Negotiate with the third party to have them withdraw the caveat
- Lodge an application with the registrar of the Land titles office to have the caveat discharged
- Commence Supreme Court litigation to remove urgent caveats
Caveats are a cost-effective way of securing your interests in property throughout Australia. However, the law surrounding it is complex and the consequences of getting it wrong could be costly.
Our lawyers are experts in analysing cavetable interests and can provide you with timely advice to ensure that your interest in the property is secured.
FAQs on caveats
An equitable interest arises where there is an interest in the property, but where you are not registered as the legal holder of the property.
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A caveatable interest is an interest in a property that allows you to register a caveat over the property.
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Registering a caveat in such instances has the effect of notifying third parties of your interest in the property.
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Caveatable interests are often created when you provide money towards the acquisition or improvement of the property, but have not registered your name on the title.
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You may apply to the Land Titles Office to discharge a caveat lodged improperly.
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Caveats cannot be lodged simply because you owe someone a debt; the other party must prove that in obtaining the debt the lender was expressly granted an equitable interest in the property.
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If you have lodged a caveat without being able to establish an equitable interest in the property, the caveat maybe discharged.
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If the caveat is discharged for improper lodgement, you maybe liable to pay the costs and damages incurred by the other party in getting the caveat removed.
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In general, it takes around 45 days to remove a caveat via the Land Titles Office if no objection is received from the party that lodged the caveat.
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However, if an unlawful caveat is blocking your ability to settle the sale of a property or an urgent refinance of a mortgage, then we can approach the Supreme Court to have the caveat discharged in approximately 10 working days.