When you own a property in Victoria and you want to put it open for sale, lodging an open house to pool in the masses comes easy. Being able to contact a broker, have it posted online and in brochures, or even placing a sign in front of the house that the property is for sale might be very easy.
However, the story might turn upside down when a house is caveated. You may not have heard of it, but there are a lot of properties in Victoria, and much more around Australia that happen to have a caveat with their ownership. Basically, a caveat is a notice you put on the property’s title, where the property cannot be sold unless you allow it to happen, regardless if you’re the written owner of the property or not. Which, a caveator also has the right to prevent such a sale, and it is also a binding agreement that stops the selling of the property definitely.
What’s the purpose of a caveat?
Caveats are a way to be able to stop the sale of a property once there is a possible buyer. When you have this, properties cannot be sold as long as you don’t allow it, and much more works as a binding agreement for the sale of the property to be put on hold. More so, by placing a caveat, it acts as a dispute, and therefore there is no definite sole owner of the property and needs to be settled yet before the sale can be lodged.
Hence, if you have an active interest in a property where you are not innately the owner but have an agreement to be a part owner, then caveats are your way to secure a property before anyone else buys it.
When and who can I lodge a caveat?
- Caveats can be granted to creditors as the owner of the property loans money from them. Properties work as collateral or insurance that an owner should duly pay his monthly payments.
- Individuals who have already granted payment, whether partial or full for a property, but the release and conversion of the owner of the title has not been concluded yet.
- Ex-wives also have the right to caveat if they have ample evidence that they have contributed to the full payment of the house even if their names are not on it.
- When the property is in dispute, hence there is still ongoing negotiation in the court as to the rightful owner of the property.
How to lodge a caveat?
- Caveats are now mostly generated and lodged digitally through PEXA. However, the details on the form should be concrete and concise upon filling out, thus you need a land conveyance to assert your claims and avoid dislodging the claim.
- Others may also visit the Land Registry Office and fill out the physical forms, but in any way, the online process is actually pretty convenient.
- Pay the fees when it is already approved and for it to be lodged successfully, then you’re good to go.
However, it must be remembered that caveats are subject to proceedings and assessments, and lodging them without a convertible interest can be grounds for consequences.
