A caveat is a type of statutory injunction preventing the registration of particular dealings with real property (i.e. real estate). It is a formal public notice or warning advising that there is an interest on the property for a particular reason.

The word caveat means ‘beware’ and lodging a caveat warns anyone dealing with the property that someone claims a priority interest in that property. The person lodging a caveat is a caveator.

Reasons for Lodging a Caveat

If you have a genuine interest in land (such as a registered mortgage), you may lodge a caveat to prevent registration of another dealing and protect your legal position. This is known as a caveatable interest.

Caveatable interests include:

• a registered or equitable mortgage
• a transfer
• a purchaser under an agreement for sale
• a tenant (in certain circumstances);
• a registered proprietor and
• contractual rights.

In NSW, the Real Property Act 1900 governs caveats. When a caveat is lodged with NSW Land Registry Services, it prevents the registration of further dealings on the property’s title until the caveat:

• is formally withdrawn by the caveator;
• lapses;
• is removed by a court order; or
• the caveator consents to a registration by another party dealing with the property’s title.

Anyone with an interest in land or who wishes to claim an interest may lodge a caveat. A caveat can also be lodged by someone with an Australian court order restraining a registered proprietor from dealing with the property.

In NSW, lodgement of caveats is electronic by a subscriber to an ELNO (such as a solicitor).

What if I lodge a caveat without having a caveatable interest?

Only someone with a caveatable interest can lodge a caveat. Lodging a caveat without reasonable cause is a serious matter. A court may order you to compensate anyone who suffers a financial loss as a result of your incorrect caveat.

Challenging or Removing a Caveat

Ways in which a caveat can be challenged or removed include the property owner issuing a lapsing notice and the caveator submitting a withdrawal of caveat form.