45 Cameron Street, Launceston Tasmania

Phone: (03) 6332 9353

/uploads/blogging/featured/caveat.png

Tasmanian Caveats – Frequently Asked Questions

What is a caveat? It is a notice on the title to land that a person claims a particular unregistered interest in the land.

What does a caveat do? In relation to Tasmanian property, the effect of registering a caveat over land is that it places a ‘freeze’ on other dealings that can be registered on the title to land until the matter the subject of the caveat has been resolved.

When can a caveat be used? To lodge a caveat over Tasmanian property you must have a ‘caveatable interest’ in land. This means that the caveator (the person/party claiming an interest) must, at the time of caveating, have a legally recognised estate or interest in the land.

What are ‘caveatable interests’? It not easy to define, however, the following examples indicate the situations that give rise to a caveatable interest:

  • The purchaser under a contract of sale has a caveatable interest in the land the subject of the contract.
  • Vendor finance - A seller of land who has received part payment of the purchase price, but is no longer the owner noted on the title to the land.
  • A person with a right of access to the land (for example an unregistered easement).
  • A tenant under a lease that is not registered.
  • A mortgagee (lender) under a mortgage that is not registered.

How are caveats registered? In Tasmania it is a requirement that caveats must be lodged in the “approved form”. The approved form can be found on the Land Information System Tasmania (LIST) website and lodged as a traditional paper lodgment or registered users of Tasmanian Online Land Dealings may lodge electronically.

Does the owner of the property receive notice of the caveat? Once a caveat is lodged and recorded against the title to the land, the Recorder of Titles sends a notice to the owner of the land. This puts the owner on notice of the existence of the caveat.

What if I am unsure about my interest in the land being a ‘caveatable interest’? It is important to ensure that care is exercised in lodging a caveat. This is because the lodgment of an unjustified caveat in Tasmania may result in damages being awarded against the applicant, if it is found that the caveat was lodged without justification. Accordingly, you should always seek legal advice before lodging a caveat as the costs and potential damages involved in lodging a caveat without a caveatable interest can be significant.

When should a caveat be removed? If a caveatable interest existed at the time but then, during the life of the caveat, circumstances changed such that the alleged interest in land was no longer able to be supported by a caveat, the caveator should take steps to withdraw the caveat from the title.

If you are seeking to create a caveatable interest in a contract, or would like our assistance in preparing and lodging a caveat for your Tasmanian property, please contact us on 03 6332 9353 or complete our simple form that can be found at http://www.cormistonlegal.com.au/contact

 

Latest News