A Caveat is a statutory injunction that can be used to prevent the registration of dealings and plans on a land title. It serves as a warning to others that the caveator claims an interest in the property.
The purpose of a Caveat is to protect a party’s unregistered or equitable interest in land (e.g., a purchaser under a contract, a beneficiary, or a mortgagee) and notify the outside world of that unregistered interest.
Once a Caveat is registered, it can only be removed with either the caveators consent or by way of a lapsing notice registered with NSW Land Registry Services.
The caveator must have a “caveatable interest” in the property before they attend to registering a Caveat. Lodging a caveat without reasonable cause may result in liability for compensation.
It is important to ensure you obtain legal advice prior to registering a Caveat on a property to ensure that you are confident you have a caveatable interest.
A common situation which arises where people assume a caveatable interest exists is where there is a property owned by one party to a marriage, and the marriage irretrievably breaks down. This is not automatic. Whilst a caveatable interest may exist it does not automatically arise as a result of the marriage itself.
If you require assistance with registering a Caveat contact our team at Meehans today on 02 4627 3333.
This article was published on 01/12/25 and the information is valid as at the date of publishing. This article is general in nature and is not and should not be considered or relied on as legal advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.
