Caveats: A simple way to protect an unregistered interest in property

In Victoria, individuals or entities with a claim to an interest in a property that is not reflected in the title can lodge a caveat with the Land Titles Office. A caveat acts as a formal notice to the public that someone claims an interest in the property, and it ensures that the person lodging the caveat (the "caveator") is notified of any attempts to deal with the property, allowing them to protect their interest.

To lodge a caveat in Victoria, you must have a 'caveatable interest,' which generally means a legal or equitable interest in the property. For example, this could be an interest under a contract of sale, an unregistered mortgage, an option to purchase, or an interest arising from a trust. If you do not have such an interest, lodging a caveat would be inappropriate and could lead to adverse consequences.

Debts do not typically give rise to a caveatable interest unless there is a security interest like a mortgage or charge. If you obtain a judgment against a property owner, you might be able to lodge a caveat against the property under certain conditions outlined in Victoria's Transfer of Land Act 1958.

A caveat can usually be removed with the consent of the caveator or when the interest protected by the caveat is registered, such as with a mortgage. The owner of the property can also apply to the Supreme Court for the removal of the caveat if its validity is disputed. Alternatively, the owner can request the Registrar of Titles to notify the caveator that the caveat will be removed after a specified period unless a court order is obtained to extend it.

If you're dealing with property affected by a caveat in Victoria, whether you're seeking to remove it or lodge one, it's essential to get legal advice. Our lawyers are experts in the field and available to assist.