Caveat

Plain-English definition. A caveat is a formal warning lodged on a property's title at the state Land Registry that signals a third party claims an interest in the land. It blocks dealings (sale, refinance, transfer) until the caveat is removed or resolved.

How it works in Australia. Each state's land titles office operates a Torrens title system where the register is conclusive. A caveator must have a "caveatable interest" — for example, an unregistered mortgage, a contract of sale awaiting settlement, an equitable interest under a trust. Lodging a caveat without a genuine interest can attract damages and costs under provisions like s74P of the Real Property Act 1900 (NSW). The registered owner can serve a "lapsing notice" forcing the caveator to commence court proceedings within 21 days.

Concrete example. Sarah lends her brother $80,000 toward his property purchase, with a written agreement she'll be repaid when he sells. To protect the loan, she lodges a caveat on the title for $120 with NSW LRS. Five years later her brother tries to refinance — the bank's title search reveals the caveat, and refinance cannot complete until Sarah either consents, withdraws the caveat, or is paid out at settlement.

Common confusion. A caveat is not the same as a mortgage or a charge — it doesn't give the caveator a right to sell the property or force repayment. It is purely defensive: it stops other dealings until the underlying claim is sorted out.