KP Carmody & Co

Caveat is a latin word meaning “beware”. A caveat may be lodged on the title to land to protect an interest in land (known as a proprietary interest) claimed by the caveator.

The High Court has described the purpose of a caveat is to act as an injunction to the Registrar General to prevent registration of dealings with land until notice has been given to the caveator.

The caveat provisions in the Real Property Act were designed to protect subsisting interests in land. They were not designed to cater for persons “interested” in land in a non-proprietary sense only: for example persons who want to recover a debt from the registered proprietor, or who want to protect hoped-for benefits under a family law property claim. Nor were they intended to be available for frustrating legitimate transactions, or for other oppressive purposes.

Examples of interests capable of supporting a caveat on the title to land are as follows:-

• An easement;

• The interest of a purchaser under a contract for sale of land;

• A mortgage or undertaking to execute a mortgage;

• An exclusive right to mine for minerals;

• The interest of a beneficiary under a trust;

• A claim under an equitable charge;

• The interest arising by reason of financial contribution towards the cost of erecting a ‘granny flat’ or other form of accommodation;

• A charge created by a building agreement giving security for payments due under the agreement;

• The interest of a person arising from contributions which they made towards the purchase price of land.

There are many more examples of ‘caveatable interests’.

A caveat, if used correctly, can be an important tool to protect your interest in land.

The advice in this article is general in nature and you should consult your solicitor for specific advice