Caveat (property law)
Caveat is Latin for "beware".[1] In Australian property law and other jurisdictions using the Torrens title system, a caveat is a warning that someone other than the owner claims some right over or nonregistered interest in the property.[2][3][4][5] Caveats can include ongoing court cases, bad debts or second mortgages.[6]
The lodging of caveats
[edit]According to Samantha Hepburn, "caveat's function as notification of an interest: once lodged they do not guarantee any title".[4]
A person acquires a "caveatable interest" (that means the buyer is entitled to place a caveat to defend that interest) when he/she purchase real estate.[5] The Registrar of Titles must notify the caveator before deal with the property.[5]
It's important to note that the caveator should find the right time to place the caveat. First person to place the caveat is will be the legal property owner, for example.[5]
There are many parties which can lodge the caveat.[5][3] Banks often lodge caveats to protect their interest when extending a mortgage loan.[7]
Withdrawal of caveats
[edit]The caveator can withdraw their caveat at any time. The Land Titles Office cannot register any transactions regarding the estate while a caveat applies.[5]
A lapsing notice will require the caveator to commence Supreme Court proceedings and obtain an extension of the caveat within days of the date on which the notice was served. If the caveator does not take action, the caveat will lapse.[8][5][9]
References
[edit]- ^ Brammall, Bruce; Tyson, Eric; Griswold, Robert (2013). "Conducting Formal Due Diligence: Inspecting the property". Property Investing For Dummies - Australia (2 ed.). John Wiley & Sons. ISBN 978-1-118-39671-1.
- ^ Vaughan, Craig (2012). Buying Property in Australia: A Guide for Non-Residents. Xlibris. ISBN 978-1-4691-5403-9.
- ^ a b "Caveat - Warning!". FindLaw. Archived from the original on 11 April 2021. Retrieved 14 December 2020.
- ^ a b Hepburn 2013, p. 259.
- ^ a b c d e f g Mirams, Andrew (25 June 2016). "Caveats – The Red Flags of Real Estate". Property Update. Retrieved 14 December 2020.
- ^ Opie, Melissa (2012). Find the Right Property, Buy at the Right Price. John Wiley & Sons. p. 88. ISBN 978-1-118-20441-2.
- ^ Cheng, Chloe (2023). "Property Caveats in Singapore". Property How Much. Retrieved 30 December 2023.
- ^ Moore, Geoff (2005). Essential Real Property. Psychology Press. p. 78. ISBN 978-1-876-90517-0.
- ^ Hepburn 2013, p. 260.
Sources
[edit]Hepburn, Samantha (2013). Australian Principles of Property Law. Routledge. pp. 259–260. ISBN 9781135315788.
Further reading
[edit]- Haddow, Nicole (2019). Smashed Avocado. Black Inc. p. 119. ISBN 9781743821114.