A Third-Party Caveat on Your Land

Most owners only learn there is a caveat when they run a search, usually when about to sell or charge the property. At that point it becomes urgent, because a dealing is already pending.

What a caveat does

A caveat is entered under the National Land Code 1965 by a party claiming a caveatable interest in the land. While it stands, registration of dealings is blocked. That means even as the registered proprietor you cannot complete a sale or a charge.

Who typically enters one

• A buyer claiming an agreement with you or a previous owner
• A beneficiary in an estate dispute
• A former spouse in a matrimonial dispute
• A creditor claiming an interest
• A partner or party in a trust dispute

First steps

• Obtain a full official search. To find out who entered it, when, and on what basis.
• Assess the basis of the claim. Whether that party genuinely holds a caveatable interest.
• Gather your documents. The title, any past agreements, and related communications.
• Take advice before contacting the other party. How you communicate can affect your position.

How a caveat is removed

• Voluntary withdrawal. The party who entered it agrees to withdraw, usually once the underlying issue is resolved.
• Lapse. Some types of caveat have a limited period of validity.
• Application to remove. The registered proprietor applies for removal.
• Court order. Where the parties disagree, the court decides.

If the caveat was entered without basis

A caveat entered without a proper interest can expose the person who entered it to a claim for compensation from the party affected. That means you may have a remedy, depending on the circumstances. The position has to be assessed against the actual documents.

If you are in the middle of a sale

Tell your solicitor and the buyer as soon as possible. Concealing it does not help, because the buyer will find it through their own search, and a late discovery damages trust and complicates the completion period.

Avoiding this in future

Run title searches periodically, particularly if you own investment property or have been involved in a dealing that was never completed. Knowing early gives you time to resolve it without the pressure of a pending transaction.

Frequently asked questions