Crown leasehold and the ACT register
Most land in the Australian Capital Territory is held under Crown leases granted by the Territory rather than as freehold. ACT Land Titles, part of Access Canberra, keeps the register under the Land Titles Act 1925 and publishes a practice manual for dealings. Because the lease sets out the permitted use of the land, often called the purpose clause, lenders and lawyers review the lease terms as part of the title check. A planned use that the lease does not allow may need a lease variation, which affects development costs and timing.
Ask your lawyer for a current title search and the Crown lease for every property in the loan, and ask whether any proposed use or works are permitted under the lease.
What an ACT caveat does
Access Canberra's caveat guidance notes describe a private caveat as entered on title when a caveator believes it has an interest in the land. The notes state that entering a caveat does not give anyone a registered interest in another person's land: it merely claims an interest and operates as a bar on the registration of registry instruments. They add that registration of the caveat gives the caveator the opportunity to seek an order of the Supreme Court to prevent another instrument being registered. The caveat form requires an ACT address for service of notices.
This makes a caveat a weaker position than a registered mortgage, which is one reason caveat-backed loans usually cost more. The guidance notes say they cannot replace legal advice, so ask your own lawyer how withdrawal or a dispute would work. This page does not set out an ACT lapsing period.
Land tax, duty and rates in the ACT
The ACT Revenue Office explains that land tax applies to residential properties that are not a principal place of residence, such as rented or vacant property. Land tax in the ACT is assessed quarterly, so a rental held during a bridging overlap can attract land tax for each quarter it is held. The ACT has also been gradually reducing conveyance duty while increasing general rates, so check current duty and rates rather than relying on older figures. See the ACT stamp duty page and the ACT land tax guidance.
Canberra and the surrounding region
The Territory is centred on Canberra, and many households work or own property across the border in Queanbeyan and the surrounding NSW region. Where security sits in NSW, NSW title and tax rules apply instead, so confirm which jurisdiction governs each property.
Two ACT illustrations
Example only, not a real client. A Belconnen owner considers a short caveat-backed loan against a rented townhouse. The lawyer explains the caveat guidance and the quarterly land tax on the rental before the borrower compares a registered second mortgage.
Example only, not a real client. A Canberra builder looks at a block for two dwellings. The lawyer reviews the Crown lease purpose clause before the builder relies on a finance or feasibility proposal. Neither example claims a lender would accept the security.
First mortgage checks specific to the Australian Capital Territory
A private first mortgage in the Australian Capital Territory is registered with ACT Land Titles at Access Canberra. If an existing mortgage is being refinanced, the discharge and the new registration need to happen together at settlement. Ask for the current payout figure in writing, and ask the ACT Revenue Office about any land tax position if the security is not your home.