There are many reasons to lodge a caveat. If you are purchasing property you can lodge a caveat over the property to ensure that the vendor does not sell the property to anyone else.
There are many reasons to lodge a caveat if you have a caveatable interest.
What is a caveat?
A caveat is a notice registered on title that prevents the registered proprietor from transferring the title to someone else. It ensures that the caveator is informed of any dealings on title.
If you have a caveatable interest in the property you can lodge a caveat at the titles office. Most caveats are lodged electronically via PEXA. Nevile & Co can assist you registering your caveatable interest online.
The important question to ask is whether or not you have a caveatable interest. If you lodge a caveat on a title that you do not have a caveatable interest in then you can find yourself in hot water. It is important to get proper legal advise before lodging a caveat. At Nevile & Co we have the expertise to provide you with appropriate and timely advise with respect to registering caveats.
Caveatable interests can arise by way of loan agreements, contracts of sale of land, pursuant to a charge, or an equitable or constructive trust for example an agreement may give a charge to a party, or a purchaser of a contract of sale of land.
When a caveatable interest arises it is important to register the caveat on title in a timely fashion, that is, as soon as the caveatable interest comes into existence you should lodge a caveat immediately to avoid any issues regarding priority.
Once the caveat is lodged the registered proprietor can not deal with the land until the caveator provides consent to the relevant dealing or withdraws the caveat. You can withdraw the caveat at any time.
If you are the registered proprietor and someone lodges a caveat over your property you can object to the caveat being lodged in which case the caveator will be required to give evidence of the interest in the land.
If it is found that a caveat has been lodged on title where there is no caveatable interest the Court may award the aggrieved party with damages for any loss suffered as a result.
For more information regarding caveats and how to register them, please contact us at nevileco@nevile.com.au and mention this newsletter.
