How do I lodge a caveat in Victoria?
If the concept of a caveat is completely new to you, let’s first define what this term means.
What is a caveat?
Under Victorian property law, a caveat acts to inform a potential buyer of the fact that a third party – referred to as the ‘caveator’ – may hold some form of legal interest in the property. There are a variety of reasons why someone may have lodged a caveat which include:
– outstanding secured debts;
– an agreement that a caveat can be lodged in a credit application or terms of trade document;
– bankruptcy;
– family law proceedings; or
– ongoing disputes between co-investors in property.
The above reasons bring us onto our second question – why lodge a caveat?
You should seek advice about lodging a caveat if you consider you have an interest in property but you are not registered on title. By putting a caveat on a property, you put yourself in a position where you must be notified if the property is to be sold or re-financed. This will then allow you to take action to prove your interest in the property should one of those two things occur.
Who can register a caveat?
You will only be able to lodge a caveat if you have a caveatable interest over a property. This means either an equitable interest (particular to property conveyancing scenarios) or a legal interest (within the domain of contract law, i.e. you’ve signed a contract with someone else dealing with the lending of money towards a property).
What is an improper caveat*?
An improper caveat is one that is lodged to achieve something other than securing a legitimate interest in land. This commonly occurs when the intent is to recover an unsecured debt or to bully the owner into paying a disputed sum of money. The following are two scenarios:
• Lodging a caveat without any written agreement or permission to do so. This is often to pressure someone into paying an unsecured debt or disputed sum of money).
• Family law disputes where the caveator did not contribute to the purchase price of the property over which the improper caveat has been lodged.
*Lodgement of improper caveats will be resisted. The person who lodged the improper caveat may be subject to significant legal costs if the matter proceeds to court.
How do I put a caveat on a property in Victoria?
If you believe you have a caveatable interest over a property, please contact us immediately. We will be happy to discuss your situation and assist in registering a caveat for you.
How to remove a caveat in Victoria?
Alternately, if you believe there is an improper caveat held over your property, please contact us and we can help you remove this as rapidly as possible.
