What is a Caveat on a Property?

What is a Caveat?

If you’re currently in the process of buying a property, should consider if you need to lodge a caveat with the Land Titles Office of the state your land is located in. Having a caveat on property you wish to buy in place can legally protect you and your interest in that property. If you’re wondering “what is a caveat?”, read on to learn more.

What is a Caveat on a Property?

The word caveat is Latin for ‘beware’. A caveat is a statutory injunction that’s designed to act as a formal warning to any members of the public that a person or organisation has a prioritised interest or legal claim on a property. It will stop other parties from registering a dealing with a property that might clash with the party who registered the caveat.

Why a Caveat Needs to Be Lodged

The primary reason anyone should consider registering a caveat on property they want to buy is to protect their legal interests and rights to the property. This is ideal in situations where a party has entered into a contract to buy the property but the sale has not yet been finalised. Having a caveat in place will prevent other parties from buying the property without the registered party’s knowledge or consent, establishing the priority of the registered party’s claim and putting them in a stronger legal position in the event of a dispute.

What Details Does a Caveat Include?

• The caveator’s name
• The caveator’s residential address
• Reference details on the property the caveat pertains to
• Specifics of the legal or equitable estate of interest
• An authenticated statutory declaration form
• The signature of the caveator, lawyer or other agent working for the caveator

Who Can Lodge a Caveat?

• A party with an equitable interest in the land under a contract of sale.
• A party selling the land that has received some of the instalments for the purchase price but is not the registered owner of the land.
• A party that has purchased and is in the process of paying the purchase price in instalments but is not current the registered owner of the land.
• A party with a right of access to the land via an easement.
• A tenant under an unregistered lease.
• A creditor that wishes to stop the seller from disposing of the property.

Learn More Today

Please get in touch if you have any questions regarding a caveat on property titles. We can also help you with any other land title and property related queries you have, such as “are there any agreements attached to the land title I’m interested in?” and “is my property in a flood zone in Australia?”