What is a Caveat?

A caveat is a type of statutory injunction preventing the registration of particular dealings with real property. A caveat acts as a warning or formal notice to tell the public that there is an interest on the land or property for a particular reason. What this means is that any third party who may seek to deal with the real property is placed on notice about the caveator’s claim by the existence of the caveat.

The word caveat means ‘beware’ and lodging a caveat on real property warns anyone dealing with the property that someone has a priority interest in that property. The party who lodges a caveat is known as a caveator.

Reasons for Lodging a Caveat
A caveat can be lodged for a variety of types of claims but in certain states such as South Australia, these are limited to claims that you have an interest in the land which is the subject of the caveat.
Some of the most common types of caveats are for:
• Where a party to a relationship claims to have contributed to the land;
• Second (unregistered) mortgages;
• Unregistered leases;
• Caveats by authorities (such as for unpaid taxes or rates);
• By anticipated purchasers of the land;
• By a beneficiary to a Will; and,
• Where an agreement is alleged that a child would inherit the land in return for substantial ongoing assistance to their parent.

Lodging a Caveat Without a Caveatable Interest
It is important to note that not just anyone can lodge a caveat. There are very serious consequences for lodging a caveat without a caveatable interest such as the caveat being removed from the Register and parties can be subject to orders for the payment of costs in relation to the caveat.

If you would like to know more about caveats and how you could protect your rights and interest, simply email us at info@straitslawyers.com or call at 08 8410 9069 to arrange an appointment.

Alternatively, you can book an online consultation with us via this link: https://straits-lawyers.square.site/product/online-consultation-/11?cs=true

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.