What is a caveatable interest?
A caveatable interest is an interest in a property that allows a caveat to be registered on title to the property. A Caveat can be a very useful tool to protect your interest in a property. However, in Victoria, there are quite strict rules governing instances where you can lodge a caveat.
So how do you know if you have a caveatable interest?
In what circumstances will I have a caveatable interest?
Examples of caveatable interests are:
- An equitable owner of a property
- A life tenant
- An interest after a life tenant
- A tenant in a lease
- An interest as mortgagee (a lender)
- An interest as someone given a charge
- An interest under an option to purchase.
When will I not have a caveatable interest?
Some examples deemed by the Court to be non-caveatable interests are:
- Debts without an agreement which allows the lender to have a charge on the land
- A purchaser with only an oral agreement
- Lender claiming costs when the loan did not actually proceed
- A shareholder in a land-owning corporation
How can I ensure that I have a caveatable interest?
If you are looking to make an agreement and wish to secure your interest in a property, it is essential that your agreement clearly allows you to have a caveatable charge over the property. It is insufficient to simply have a clause which states that all parties agree you may lodge a caveat over the property. It must be explicit in the agreement that you have a charge on the land. Once your agreement is carefully drafted to ensure that a caveatable interest is created, you may proceed with instructing your lawyer to lodge a caveat.
Want to know more about caveats?
If you would like to know more about caveats, see our previous article, What is a Caveat?, which includes information on circumstances where caveats may or should be used.
For more general information regarding caveats, covenants and easements in Victoria, refer to the Land Titles Office.
How can Sharrock Pitman Legal help?
At Sharrock Pitman Legal, as Accredited Specialists in Property Law and Commercial Law, we are able to assist you with drafting agreements so as to ensure that your interest is able to be protected with a caveat.
If you believe you may have a caveatable interest over a property, and are considering lodging a caveat, please do not hesitate to call Andre Ong on (03) 8561 3317 or alternatively, fill in the contact form below.
The information contained in this article is intended to be of a general nature only and should not be relied upon as legal advice. Any legal matters should be discussed specifically with one of our lawyers.
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For further information contact
Andre is a Principal of Sharrock Pitman Legal.
He heads our Property Law Group and is an Accredited Specialist in Property Law (accredited by the Law Institute of Victoria). He also deals with Commercial Law. For further information, contact Andre Ong on his direct line (03) 8561 3317.