Caveats are common instruments by which a person who has interest in a parcel of land can register that interest against the certificate of tile of that parcel of land.
Caveats primarily serve the following purposes:
- they prevent the registered proprietor of a parcel of land from disposing of the land without first notifying the caveat holder. For example, it is commonplace for lenders whose loans are secured by a parcel of land to register a caveat over that land. Similarly, prudent purchasers of land may register a caveat over the property the subject of the transaction to ensure that it cannot be transferred to a third party prior to the settlement; and
- they notify persons who subsequently obtain an interest in the land of the existence of a prior interest with respect to that land. For example, unregistered loans secured against a parcel of land can maintain priority for payment purposes against subsequent unregistered loans secured against the same property by notifying that interest by way of a caveat. Without a caveat, a prior unregistered loan could lose its default priority over a subsequent unregistered loan for payment purposes.
For a person to register a caveat over a parcel of land, he or she must either have a direct interest in the land or a contractual agreement that enables the lodgement of the caveat.
Rowe Bristol Lawyers is experienced in advising and assisting clients with respect to all aspects of dealing with caveats, including:
- drafting and reviewing clauses and documents that would create a caveatable interest;
- advising on the necessity and effects of a caveat in the circumstances;
- drafting and lodging caveats on behalf of clients;
- advising on the enforceability of caveats; and
- setting aside caveats and resisting applications to set aside caveats.
If you require legal advice in relation to caveats, please contact us to arrange a meeting so that we may consider your specific circumstances.
The above information is provided as general information only and should not be relied upon as legal advice. The accuracy of this information may have changed from the date when it was published.