What is a caveat?
- Thread starter LucasK
- Start date
If someone has an interest in your property they can place a caveat over it. This will prevent you selling it until the caveat is removed.
For example if we had a dispute over a property and I was fearful you would sell without me knowing I might have a solicitor place a caveat on it. Not a good example but best I can do after a night down the pub with Jamie!
For example if we had a dispute over a property and I was fearful you would sell without me knowing I might have a solicitor place a caveat on it. Not a good example but best I can do after a night down the pub with Jamie!
Lucas, Simon's description is spot on.
Finance companies often use Caveat's.
For example, you might borrow money to buy a car and they want to protect themselves more than just a lien over the car, but you don't want a mortgage over your home just for a car loan.
They can lodge a Caveat with the Titles Office, which means you cannot sell it, mortgage it to any one else, without them knowing and without their permission.
If you default on the car loan, it doesn't give them the right to just sell up the home to recoup the car debt, but it does give them some control over what you do with the property - and therefore a better chance of eventually getting their money back.
Geekay
Finance companies often use Caveat's.
For example, you might borrow money to buy a car and they want to protect themselves more than just a lien over the car, but you don't want a mortgage over your home just for a car loan.
They can lodge a Caveat with the Titles Office, which means you cannot sell it, mortgage it to any one else, without them knowing and without their permission.
If you default on the car loan, it doesn't give them the right to just sell up the home to recoup the car debt, but it does give them some control over what you do with the property - and therefore a better chance of eventually getting their money back.
Geekay
So how does one check on exhisting caveats? Is it shown on the title?
OK after a nights sleep I can offer the following. It is for NSW but should be similar elsewhere.
The word Caveat comes from latin and means let them beware.
When recorded on a Torrens Title, the main function of a caveat is protective. The caveat forbids registration of any further interest recorded in the land without first obtaining the consent of the caveator. In Just v Bankof NSW (1972) it is described as:
"a claim by someone that he shall receive notice before dealing with land is carried through."
I hope this helps a little.
The word Caveat comes from latin and means let them beware.
When recorded on a Torrens Title, the main function of a caveat is protective. The caveat forbids registration of any further interest recorded in the land without first obtaining the consent of the caveator. In Just v Bankof NSW (1972) it is described as:
"a claim by someone that he shall receive notice before dealing with land is carried through."
I hope this helps a little.
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