What exactly is a Caveat?
Caveats are an important tool to protect interests in land. But what exactly is a caveat? If someone owes you money does this entitle you to lodge a caveat?
You cannot lodge a caveat where you feel you have been wronged or if you have loaned money and have not been repaid. In fact, there are penalties for lodging a caveat without reasonable cause.
In order to lodge a caveat, you must have what is known as a "caveatable interest". Whether you have a “caveatable interest” can be technical and you should obtain legal advice to establish if you have an interest in the land prior to lodging a caveat.
Once lodged, the caveat will prevent the property from being sold or any other dealing being registered, such as a mortgage, unless the caveat is withdrawn, removed, lapses or is cancelled.
It is important to understand the risks associated with lodging a caveat before doing so.
We have extensive experience in advising clients on what constitutes a caveatable interest and what is required to register or remove caveats from the land register. If you would like more information please give us a call.