When it comes to buying, selling, or securing property in Australia, knowing how a caveat works can make all the difference.
A caveat is a legal notice that can effectively block a property transaction, like a sale or transfer, if someone else claims a legal interest in the land.
It's one of those legal tools that sounds complicated but serves a simple purpose: to protect someone's stake in a property.
In this guide, Unified Lawyers walks you through the essentials :
What a caveat actually is, who can lodge one (and who can't), how the process works, and the key legal considerations to be aware of if you're looking to protect, or challenge, an interest in real estate.
What Does a Caveat Do?
A caveat acts like a legal "stop sign" on a property title.
Once it's lodged, it tells the world: Hold up, someone else has a legal claim to this land.
It immediately puts a freeze on most dealings with the property, including sales, transfers, or new mortgages, until the caveat is formally removed, withdrawn, or allowed to lapse.
In practical terms, that means a caveat can stall a settlement, block a refinancing deal, or halt a transfer between parties, all because someone believes they have a legitimate interest in the property.
This makes it a powerful way to prevent owners from disposing of or encumbering land while a dispute is active or unresolved.
Example?
Say you've signed a contract to purchase a property, but settlement isn't due for another 30 days.
Lodging a caveat gives you a safety net, it ensures the seller doesn't try to offload the property to someone else in the meantime.
Or perhaps you've loaned money to a relative with an understanding it's secured against their house.
A caveat can help preserve that interest until it's repaid or legally resolved.
Because of this freezing effect, caveats are often used as a protective measure in disputes, especially in family law matters, business breakups, estate claims, and debt recovery situations.
But while they offer strong interim protection, caveats are not bulletproof or permanent.
If challenged, the person lodging the caveat (the caveator) may need to head to court to justify why it should stay in place.
The bottom line?
A caveat is a serious legal instrument that can quickly halt a property deal in its tracks, but only if you have the right to use it.
Who Can Lodge a Caveat in Australia?
Only someone with a valid "caveatable interest", meaning a legally recognisable claim or right over the property, can lodge a caveat.
It's not enough to simply believe you're owed something; your interest must be grounded in law, whether through a contract, financial agreement, or equitable right.
Examples of caveatable interests include :
- A purchaser who has exchanged contracts but hasn't yet completed the sale
- A lender who has provided a loan that's secured against the property
- A spouse or de facto partner asserting a claim in a family law property dispute
- A builder, contractor, or tradesperson claiming payment for work done (depending on local legislation)
These interests reflect situations where money, promises, or contributions have created a tangible link to the property.
But be warned, lodging a caveat without proper grounds isn't just frowned upon.
It can trigger serious legal consequences, including cost orders or compensation claims from the property owner.
If in doubt, seek legal advice before taking action.
Reasons for Lodging a Caveat
Some common scenarios where caveats are used :
- Property sale : A buyer lodges a caveat after exchanging contracts to protect their interest.
- Family law :A party claims an interest in matrimonial property during separation.
- Debt or loan security : A lender secures an informal loan with an interest over the borrower's property.
- Business disputes : A co-owner or partner lodges a caveat to prevent unauthorised sale.
Types of Caveats on Property
Different caveat types may apply depending on the jurisdiction and the nature of the claimed interest :
- Absolute Caveat : Prevents all dealings with the title unless the caveat is removed.
- Conditional Caveat : May allow certain dealings subject to conditions.
- Permissive Caveat : Rare, allows dealings but notifies the caveator.
State legislation governs these differences :
- NSW : Governed by the Real Property Act 1900 (NSW)
- VIC : Governed by the Transfer of Land Act 1958 (VIC)
QLD: Titles are managed under the Land Title Act 1994 (QLD)
How Much Does It Cost to Put a Caveat on a Property?
Lodging a caveat involves both administrative and potential legal costs.
- Lodgement Fees :
- NSW : approx. $150 via NSW LRS
- VIC : approx. $60 via Landata or SPEAR
- QLD : approx. $20-$50 via Titles QLD
- Legal Costs : If engaging a solicitor to draft and lodge, fees may range from $300 to $1,000+, depending on complexity.
Note : Costs can increase significantly if the caveat is challenged or needs to be defended in court.
How to Lodge a Caveat in Australia (Step-by-Step)
- Confirm your caveatable interest : Ensure your legal interest is valid and documented.
- Prepare documents : This includes a caveat form, statement of claim, and supporting evidence.
- Submit lodgement :
- NSW : NSW LRS eLodgement
- VIC : SPEAR or Landata
- QLD : Titles QLD lodgement portal
- Pay required fee
- Notify parties : Once lodged, the registered proprietor and interested parties may be notified.
- Act on any challenges : If the caveat is challenged, you may have to seek a court order to maintain it.
Required Documents and Information
To successfully lodge a caveat on a property, you must submit precise and legally compliant documentation.
Inaccuracies or omissions can not only delay your lodgement but may also expose you to legal consequences.
To lodge a caveat, you generally need :
- Legal property description (found on the title)
- Details of the interest claimed
- Your full name and address
- Supporting evidence (e.g., contract, loan agreement)
- Identification documents
Ensure all information is accurate, as false statements can lead to penalties.
How to Remove a Caveat on Property
Removing a caveat requires understanding the legal procedures available depending on the context and whether the caveator agrees to its removal.
Here are the three main ways to remove a caveat :
- Withdrawal by the caveator : The person who lodged the caveat can file a withdrawal.
- Lapsing notice : The property owner can serve notice to the caveator. If the caveator does not take court action within a set time (e.g., 21 days in NSW), the caveat lapses.
- Court order : The court can order removal if it finds no valid interest.
When to Use a Caveat?
A caveat is a powerful legal tool, but it should only be used in appropriate and justified situations.
Filing a caveat when no legal interest exists can backfire, potentially resulting in court-ordered damages or removal costs.
Appropriate times to lodge a caveat include :
- You have a genuine, legally recognisable interest in the property
- There is a risk the property may be sold, transferred, or encumbered
- Legal proceedings are pending or being considered
Misuse Warning : If you lodge a caveat without cause, you may be liable for legal costs or damages to the property owner.
FAQ's
1. How long does a caveat on a house last for?
A caveat can remain on the title indefinitely unless action is taken to remove it.
However, if the registered proprietor or another interested party issues a lapsing notice, the caveator (the person who lodged the caveat) must initiate legal proceedings, typically within 14 to 21 days depending on the jurisdiction, to maintain it.
If they fail to do so, the caveat lapses automatically. It's essential to act promptly upon receiving a lapsing notice or risk losing the protection the caveat provides.
2. Can anyone put a caveat on a property?
No. Only individuals or entities with a valid legal or equitable interest in the property can lawfully lodge a caveat.
This is called a "caveatable interest."
Common examples include purchasers under a contract of sale, parties to a financial agreement, or creditors with a loan secured over the property.
Lodging a caveat without such an interest is considered an abuse of process and can lead to financial penalties, including being ordered to pay damages to the property owner.
3. How do I know if there is a caveat on my property?
To find out whether a caveat exists on your property, you must conduct a title search through your state or territory's land registry office.
This search will show the current status of the title, including any registered caveats, mortgages, easements, or other encumbrances.
In NSW, for example, you can order a title search via the NSW Land Registry Services online portal.
If you're purchasing property, your solicitor or conveyancer should conduct this search as part of due diligence.
4. How to remove a caveat on your property in NSW?
There are three main options :
- Lapsing notice : You can apply to the land registry to serve a lapsing notice on the caveator. If they don't commence Supreme Court proceedings within 21 days, the caveat automatically lapses.
- Negotiated withdrawal : The caveator may agree to withdraw the caveat voluntarily, especially if a dispute has been resolved or if you provide suitable assurances.
- Court application : If the caveator refuses to withdraw and has no valid claim, you may apply to the Supreme Court for an order to remove the caveat. Legal representation is highly advisable due to the complexity and potential costs involved.
5. Can I put a caveat on my parents' house?
Only if you have a legitimate legal interest in the property, such as being a lender under a secured loan agreement or having contributed to its purchase under a constructive trust.
Simply being a family member or having lived in the home does not justify a caveat.
Courts take a strict view on this and may penalise frivolous or vexatious caveats, even within family contexts.
If in doubt, seek legal advice before lodging a caveat to avoid unnecessary legal and financial risk.
How Unified Lawyers can help
Dealing with a property caveat, whether you need to lodge one, respond to one, or resolve a dispute, requires a clear legal strategy and an in-depth understanding of land law.
The implications of getting it wrong can be significant, from delays in settlement to costly court proceedings or even financial penalties.
That's why it's essential to have a legal team that understands both the technical process and the strategic context behind every caveat-related decision.
At Unified Lawyers, we offer practical and tailored legal advice on all matters involving property caveats.
Whether you're a purchaser wanting to protect your interest after signing a contract, a creditor seeking security, or a family member involved in a dispute over real estate, our experienced property and family lawyers can guide you through the complexities and protect your rights.
We regularly assist clients in :
- Assessing whether they have a valid caveatable interest.
- Preparing and lodging caveats across NSW, Victoria, and Queensland.
- Responding to lapsing notices or defending caveats in court.
- Removing caveats that are incorrectly or unlawfully lodged.
- Navigating caveats in separation, estate, or business-related disputes.
We understand that timing, accuracy, and legal compliance are critical when it comes to caveats.
Our team works closely with property law specialists, conveyancers, and litigation experts to ensure that your claim is correctly presented and backed by solid legal grounding.
We also provide proactive advice to avoid pitfalls, such as invalid lodgement, incomplete documentation, or exposure to cost orders.
If you're unsure whether you can or should lodge a caveat, or you've discovered a caveat on your property and want it removed, our lawyers are here to help.
We'll explain your options in plain English, map out your next steps, and ensure your property rights are properly protected.
A caveat is a valuable tool for protecting interests in real estate, but it must be used correctly. Lodging one without a valid legal basis can have serious consequences.
Whether you're asserting your rights or defending against an improper caveat, Unified Lawyers can provide expert advice to safeguard your interests.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
