What Is Caveat In A Property
A Caveat is basically a warning setup to create awareness, cautioning one before they go ahead and make a decision that they might later end up regretting. It is also a type of statutory injunction preventing the registration of particular dealings with real property. Additionally, a caveat acts as a warning or formal notice to tell the public that there is an interest in the land or property for a particular reason. The word caveat means ‘beware’ . For instance, If one was thinking of trying to claim the property (by trying to buy it out from under you, etc.), the caveat would block them from doing so.The essence of having a Caveat on property is that it protects you from adverse claims by third parties and assists in securing title against any potential disclosure issues associated with buying any property of interest that has already been taken. In this case, interest means a right, power, or privilege over land or property. And for one to claim an interest in property, they need to have shown sufficient interest in the property through an equitable mortgage.
You ought to ensure you have a genuine interest when lodging the caveats, which are as follows:
A registered or equitable mortgage;
A transfer
purchaser under an agreement for sale;
A tenant (in certain circumstances);
A registered proprietor
contractual rights.
Caveats are for home buyers and sellers. If you have an estate or interest in land that registration of another deal cannot protect, you may consider lodging a caveat to protect your legal position.
The caveat requires the following details:
The caveator’s name and residential address or registered office, including an address where notices can be served,
The name and address of the registered proprietor
Reference details to which the caveat relates
Particulars of the legal or equitable estate of interest
A verified statutory declaration
The signature of the caveator, lawyer, or another agent of the caveator
Before lodging a caveat, you should take steps to ensure you have a caveatable interest in the property. Otherwise, you may be liable to pay compensation to the wronged parties due to an incorrectly lodged caveat. A person claiming interest in a lot to be transferred is eligible to lodge a caveat.
A Caveat may be withdrawn at the Caveator’s request at any time. A request to withdraw a caveat document must be signed and lodged with the Registrar.
A caveat that has been lodged without the consent of the registered owner will lapse within 3 months if the caveator does not initiate court proceedings to enforce their rights.
