Glossary
Caveat
Also called: caveat on title
A caveat is a notice lodged on a property's title that warns others a person claims an interest in the land. While it is in place it generally stops certain dealings from being registered without the caveator being notified or consenting. Each state's land titles office administers caveats under its own law.
An example
A short-term lender advances funds under a loan agreement in which the borrower charges a property in the lender's favour. Instead of registering a mortgage, the lender lodges a caveat to protect that interest while the loan is outstanding.
Why it matters
A caveat is quicker to put in place than a registered mortgage but does not give the same rights. Caveats can be challenged, and a person who lodges one without a proper claim may be liable for compensation. The rules on lapsing and removal differ between states.
Points to check
If a lender proposes a caveat rather than a registered mortgage, ask why, and what rights the caveat gives it. Check whether existing mortgagees must consent and whether lodging the caveat breaches your current loan terms. Ask how and when it will be withdrawn once the loan is repaid, and whether a fee applies. If someone lodges a caveat you dispute, seek legal advice promptly, because each state has its own process and deadlines.
Read about caveat loans
Related terms
Further reading: Land Use Victoria