What is a caveat and why are they important?
A caveat is a document that is registered over real property, and provides an individual or entity a secured interest in that property. Caveats are registered on title to prevent the property owner from disposing of the property without first accounting to the Caveator. The Caveator does not necessarily need to have an interest in the property itself, they merely need to have a caveatable interest which may be legal or equitable, in order to be able to lodge a caveat over the whole or part of the land.
A caveat becomes effective at the time of lodgment and are then noted on the register over title of property. Caveats may disclose that a third party has some type of interest of your property, or that you may otherwise owe them a debt which they seek to secure by encumbering your property.
The existence of a caveat may cause considerable delay in the process of purchase and sale of property as you are unable to deal with the property so long as the Caveat is still registered on title.
Shire Legal can assist you to:
- Lodge a caveat online through our e-conveyancing platform;
- Request a title search to see if there are any existing caveats over your property or a property you wish to purchase or;
- Negotiate the removal of a caveat.
You can find more information on caveats on the NSW Land Registry Services website here.