A caveat will remain in effect – encumbering a title – until it is either withdrawn by the caveator (the person who lodged the caveat on the property) or else removed by the issuing of a lapsing notice or court order. In short, a caveat does not magically disappear after a set amount of time. You cannot simply wait it out.
Direct action must be taken to remove a caveat from your property.
However, there is good news here. Action can be taken to remove an improper caveat and it is commonly effective.
So, how long does a caveat last once action has been taken?
In many cases, a person with an interest in the property can issue a lapsing notice. This is done via the Registrar of Titles under Section 89A of the Transfer of Land Act 1958.
The Registrar of Titles shall subsequently serve a notice on the caveator. This requires the person who originally lodged the caveat to fully substantiate the caveat. The time granted to the caveator in this instance is a maximum of 30 days. Should they be unwilling or unable to substantiate their claim within the 30 day time period, the caveat will then automatically lapse.
In summary, here are the time periods for which a caveat lasts in Victoria based on different scenarios:
- Withdrawal – 48 hours.
A withdrawal can be arranged in 48 hours in the event that the caveator agrees to remove the caveat after receiving a letter of demand. This, of course, requires the agreement and cooperation of the caveator which is not always forthcoming.
- Lapsing notice – 55 days or longer (non-urgent) – Lapsing Notice
On our application, this is issued via the Registrar of Titles and gives the caveator 30 days to substantiate their claim. Please allow up to 55 days to complete the process. Importantly, should the caveator commence court proceedings to argue that their caveat is proper; court action will then need to be taken; court action occurs in a minority of cases.
- Supreme Court Action – Less than 55 days (urgent)
Some people cannot wait the 55 days for the caveat to be removed. This may occur where there is an application for finance that will expire or where settlement on a contract of sale is due. In this instance, we take steps to lodge a rapid application to the Supreme Court of Victoria. Depending on court timetabling, a matter can be heard within 10 days. Please download the ‘Going to Court’ document to read more about the court process.
Find out more about this at Our Services page.
If you have decided to no longer tolerate the improper caveat on your title, please click here to see if our caveat removal services are right for you.
