What is a Purchaser’s Caveat?

In property law, a Caveat is a document on a Certificate of Title registered by someone, other than the registered proprietor themselves, that has an interest or owns some right in the property.  They are known as the Caveator.  If a Caveat has been registered on a property, the Caveator will be notified of any attempted transactions with the property.  The Caveator is required to provide consent in order for the transaction to occur.

Essentially, a Purchaser’s Caveat is a Caveat registered on a Certificate of Title when a Purchaser has entered into a Contract of Sale to purchase the property.  In this instance, the Caveator is the Purchaser.  The Caveat restricts the property being dealt with prior to settlement and therefore, protects the Purchaser’s interest in the property.

It is important for a Purchaser to lodge a caveat, especially if a deposit has been paid and more so if the deposit has been released or is to be released. Once a deposit has been paid by the Purchaser, they have an equitable and by reason of that a caveatable interest in the property sold to them.  Without a caveat, the vendor may retain the deposit and possibly sell the property to someone else.

If a Purchaser enters into a Contract of Sale to purchase a property and they do not register a Caveat, they risk someone else attempting to transact and register an interest in the property.

If you require further advice in relation to registering a Caveat, please contact our office at admin@wslegal.com.au or (03) 9707 1155.