Caveats on property in Queensland: what they are and how to deal with one

What a caveat actually does

Caveats are dealt with under the Land Title Act 1994 (Qld). Lodging a caveat records a claim to an interest in the land and, once registered, prevents the Registrar from registering most later dealings — a transfer, a mortgage, a lease — without the caveator's consent or a court order.

It is a holding measure, not a determination. A caveat preserves the position while the underlying claim is sorted out. It does not prove the claim is good, and lodging one without a proper basis exposes you to a compensation claim from anyone who suffers loss because of it.

When do you have a caveatable interest?

You need an equitable or legal interest in the land itself. A grievance, a debt or a moral claim is not enough. Interests that commonly support a caveat include:

• A buyer's interest under a signed contract of sale, once the contract is binding
• An unregistered mortgage, charge or loan agreement that expressly charges the land
• An interest under a trust, including a resulting or constructive trust from contributions to the purchase
• An equitable interest arising from a family or property settlement agreement
• An option to purchase, a right of first refusal drafted as an interest in land, or an unregistered lease
• An easement or a life interest granted but not yet registered

Not caveatable — the common mistakes

These situations do not, on their own, support a caveat, and lodging anyway is where people get into trouble:

• An unsecured debt — money owed with no charge over the property
• An unpaid trade or builder's account, unless the contract creates a charge over the land
• A family member who feels entitled to a share but made no financial contribution and holds no agreement
• A dispute about a deceased estate — a family provision claim is protected differently, not by caveat
• Leverage in a separation where the property is not in issue as an asset claim

How a caveat is lodged

The caveat is lodged with Titles Queensland in the approved form. It must identify the lot on title, name the caveator and the registered owner, and — critically — state the nature of the interest claimed and the facts that give rise to it. A vague or wrongly described interest is a common ground for removal.

The caveat must be signed and, in most cases, supported by a solicitor's certificate. The registered owner is notified once it is lodged, so expect a response quickly.

How long a caveat lasts

A non-consent caveat generally lapses three months after lodgement unless the caveator starts a proceeding in a court of competent jurisdiction to establish the interest and notifies the Registrar. That is the point most caveats are decided: the caveator either commits to litigation or the caveat falls away.

The registered owner can also force the issue earlier by serving a notice requiring the caveator to start proceedings within 14 days, or by applying to the Supreme Court to have the caveat removed. Some caveats — for example those lodged with the owner's consent — do not lapse in the same way.

Removing a caveat

There are four practical routes, in ascending order of cost:

• Withdrawal — the caveator signs a withdrawal, usually after the dispute settles or the money is paid at settlement out of the proceeds
• Lapsing — the owner serves notice requiring proceedings within 14 days; if none are started, the caveat lapses
• Automatic lapse — three months passes without a proceeding being started and notified
• Court order — an application to the Supreme Court to remove the caveat, generally on the basis that there is no serious question to be tried or the balance of convenience favours removal

If you are selling and a caveat appears

Move immediately. Settlement cannot complete with a caveat on title unless the caveator consents or agrees to withdraw at settlement, and your contract almost certainly requires you to deliver clear title. A caveat discovered a week out from settlement is an emergency, not an administrative issue.

Often the practical answer is commercial: the caveator's claim is a debt, and it is paid or held in trust at settlement in exchange for a signed withdrawal exchanged on the settlement platform. Where the claim has no proper basis, the alternative is a lapsing notice or an urgent Supreme Court application — both of which take time you may not have.

If you are buying and find a caveat on the title search

The title search at the start of the transaction is exactly why you order it. Raise it with the seller in writing straight away and require the caveat be removed before settlement as a condition of completion.

Do not settle around a caveat on the assurance it will be dealt with later. Once you have paid, your leverage is gone and the problem becomes yours to litigate.

Frequently asked questions