Caveats
A caveat is a notice registered on a land title that prevents the Registrar of Titles from dealing with the title in any way without obtaining permission from the caveator (the person who lodged the caveat).
Common circumstances in which you might see a caveat are:
A purchaser of real estate may lodge a caveat over a property they are purchasing after they have signed the contract. This is done to prevent the vendor dealing with the property in any way that would affect the purchaser's rights, for example selling the property to someone else, using it as security for loan, or transferring it. Sometimes a contract will prohibit a caveat being lodged, because dealings need to be made on the land prior to settlement - this is common when buying from an unregistered plan of subdivision, as the vendor needs the land to remain unencumbered in order to lodge the subdivision application, and the application will fail if there is a caveat in place.
In family relationship breakdowns where there is real estate owned by only one person, the other person sometimes places a caveat to prevent the owner from selling the property before all property matters have been agreed upon between the parties.
In some circumstances, a lender can place a caveat on a borrower's property to secure the debt owed to them. This is generally only seen in person-to-person loans, such as between family members or friends, as it's less secure (but usually cheaper) than a mortgage.
It is worth noting that a caveat cannot be lodged on a whim. A caveator must have a caveatable interest to be allowed to lodge a caveat. If a caveator is found to have lodged a caveat without a caveatable interest, a court can order its removal and may also require the caveator to compensate the land owner for any loss they have suffered due to the caveat.
It is strongly recommended you seek legal advice before attempting to lodge a caveat to protect your interests, as the consequences can prove expensive if lodged without due consideration.
If you are a land owner who has a caveat placed on your property, you can lodge an application with the land registry to trigger the Registrar of Titles to send a notice to the caveator requiring them to issue court proceedings to substantiate their claim within 30 days. Failure to do so will result in the caveat lapsing. The other option is to make an application to the Supreme Court, which can sometimes be quicker if the removal needs to be done urgently.
Alternatively, you can negotiate with the caveator. Depending on the reason they placed the caveat, you may be able to negotiate with them to have them remove it voluntarily if you satisfy their claim.
For more information about caveats or to discuss lodging or removing one, please click here to contact me.