What is a caveat?
A caveat is a legal notice which prevents the transfer of a land title without the consent of the caveat holder.
The purpose of a caveat is to prevent any further formal dealings on the property to protect and preserve the interest of the caveator.
Anyone who does a title search would be notified if there were a caveat on the property, which would need to be removed before the property can be sold.
What are the types of caveats?
In South Australia there are two types of property caveats:
- An absolute caveat, which prevent any subsequent registration of interest on the property; and
- A permissive caveat, which permits further registrations of interest if they are made subject to the caveator’s claim.
What is a caveatable interest?
Anyone can lodge a caveat if they have a legal caveatable interest in the property. You can lodge a caveat if you have an interest in the land if you wish to protect the land.
For example – you have purchased a property and have signed the contract of sale. You have paid the deposit, creating a beneficial interest in the property. This is considered a caveatable interest. The vendor notifies you that they may be unable to complete the contract. To protect your beneficial interest in the property, you lodge a caveat.
Other examples of caveatable interests include:
1. A person who has lost interest in the property as a result of fraud or forgery;
2. A holder of a charge over the land (i.e. your supplier, as part of its payment terms, retains the right to lodge a caveat on your property in the event you are unable to pay their invoices);
It is fundamental to establish a caveatable interest before lodging a caveat. Wrongful lodgements can lead to penalties.
Fees and cost associated
Currently, the fees and costs associated to lodge a caveat is $179.00.
What do we need to prepare a caveat lodgement?
Just like a conveyancing file, we will need to take steps to verify your identity before submitting a caveat lodgement. This caveat lodgement process can be completed on the e-platform lodgement, PEXA.
Contact W Legal Group
If you are seeking advice on to lodge a caveat, or how to remove one from or your property, contact W Legal Group and one of our team members will assist you.