A caveat acts as a formal warning or warning that states that someone has an interest in a property. It essentially prevents the registration of dealings with real property until the caveat is withdrawn, removed, lapses or is cancelled.
Caveats may be lodged by:
- A person claiming an interest in land;
- A person to whom an Australian Court has ordered that interest in land be transferred;
- A purchaser under an instalment contract; and
- A person who has the benefit of subsisting order of an Australian Court in restraining the registered proprietor (owner of the land) from dealing with the land.
You generally need to have an interest in the land. It is not sufficient that someone owes you money. Protection of future proceeds of the sale of land does not (usually) create an interest that supports the existence of a caveat.
It is important to note that a caveat does not provide all the benefits of registration of your interest and should not be seen as a permanent alternative in registering your interest on the title to the land. Certain caveats lapse, usually within three months, and there can be serious consequences for lodging a caveat.
Call Gibbs Wright Lawyers today about your caveat matter.