Thinking About Lodging a Caveat in Queensland? Here's What You Need to Know
- kemartin18
- 1 day ago
- 2 min read
If you’re considering lodging a caveat on a property in Queensland, it’s important to understand what you’re getting into. A caveat can be an excellent tool for protecting your interests in a property, but it’s not something to be used lightly. Lodging or maintaining a caveat without a valid basis can lead to serious consequences. On the flip side, if you’re dealing with a caveat lodged against your property for the wrong reasons, there are ways to get it removed quickly, and you may be entitled to seek compensation.
What Exactly is a Caveat?
A caveat is a formal legal notice lodged with the Titles Registry in Queensland that essentially “freezes” the property’s title. Once a caveat is in place (other than in very limited circumstances), it prevents the property from being sold, transferred, or mortgaged without the consent of the person who lodged the caveat (the caveator).
Can Anyone Lodge a Caveat?
Not quite. Caveats aren’t a “free-for-all”. Queensland law requires that you must have a legitimate basis to lodge a caveat. Generally, you need to establish that you have a legal or equitable interest in the property. Examples of proper grounds include:
being a purchaser under a sale contract;
having an equitable mortgage (e.g. a person or entity that has provided a loan secured by the property); and
being a beneficiary under a trust related to the property.
It’s absolutely essential to confirm that your interest in the property meets these criteria before lodging a caveat. Why? Because lodging a caveat without a valid basis isn’t just frowned upon—it can land you in hot water.
What Happens if a Caveat is Improperly Lodged?
Lodging or maintaining a caveat without proper grounds can have significant consequences such as:
Court Action: If someone believes a caveat has been lodged improperly, they can apply to the Supreme Court of Queensland to have it urgently removed. The court will assess whether the caveator had reasonable cause to lodge or maintain the caveat.
Compensation: If the court determines that the caveat was lodged or maintained without proper grounds, the caveator may be ordered to compensate the affected party for any losses incurred. This could include financial damages, such as delays in property transactions or lost opportunities.
Legal Costs: In addition to compensation, the caveator could also be ordered to pay the affected party’s legal costs, which can add up quickly.
Final Thoughts
Whether you want to safeguard your legal rights or deal with an improper caveat, obtaining prompt legal advice is key.
At Shand Taylor Lawyers, we understand the importance of acting strategically and we have extensive experience in both lodging and removing caveats. We are well placed to assist you in relation to any issue arising from or in connection with a caveat in Queensland.
For Property Advice, please contact:
Patrick Sherlock, Director
(07) 3307 4542
For Litigation Advice, please contact:
Kimberley Forman, Director
(07) 3307 4523
Comentários