When you purchase or own property in Australia, the land title is the most important legal document. It confirms ownership and records any restrictions or interests affecting the land. But many property owners are surprised to discover that their title contains more than just their name.
The following is a summary of the most common issues found on property titles, what they mean, and why you should always check before purchasing.
| Mortgages | A mortgage is the most common entry on a property title. It shows that a lender has a registered interest in the land until the loan is repaid. It means the lender olds legal rights over the property. The mortgage must be discharged before the property can be transferred unencumbered. I is important when buying to ensure that a mortgage is removed at settlement. |
| Caveats | A caveat is a warning recorded on the title that someone other than the owner claims an interest in the property. It usually indicates a financial dispute with regard to the property. A caveat can block the transfer useless resolved. |
| Covenants | A covenant is a restriction on how the land can be used. These are often placed on subdivisions by developers or councils. A covenant can affect the ability to renovate, subdivide or develop property. |
| Easements | An easement grants someone else certain rights over part of the land. Often it includes sewerage or drainage easements or rights of way for neighbours. Easements can significantly reduce the development potential of the land. |
| Restrictions on Title | Other restrictions can include agreements with Planning Authorities regarding future development of the land. These restrictions on title may require separate approvals in addition to the planning scheme provisions. |
Restrictions and obligations regarding the land are mentioned in the certificate of title but the detail may be in associated documentation that sets out the encumbrances on title that need to be addressed.
