In Queensland, property dealings are tightly regulated to ensure certainty and security of land ownership. The Torrens Title system, which governs land registration in Queensland, emphasizes the importance of having interests recorded on the public register. However, not all interests in land can be formally registered. This is where caveats become a powerful tool to protect unregistered or equitable interests in real property.
Whether you’re a buyer, lender, beneficiary, or someone with a contractual or equitable interest in land, understanding how caveats work—and when you can lawfully use them—is critical.

What is a Caveat?

A caveat is a legal notice recorded on the title of a property, alerting others to the caveator’s claim to an interest in the land.
Once a caveat is lodged on the title of a property, it prevents the owner from further dealings with that property (such as selling or transferring the property) without notifying the caveator or resolving their interest. It essentially “freezes” the title until the caveat is withdrawn, lapses, or is removed by court or administrative action.
Caveats can be lodged by, inter alia:

• the Land Titles Office;
• the registered owner of a lot;
• a person to whom an Australian Court has ordered that an interest in a lot be transferred; and
• a person claiming a caveatable interest in a lot.

Why lodge a Caveat?

The main reason for lodging a caveat is to protect an unregistered interest in a property. If you hold an interest but it isn’t registered, others could deal with the land without acknowledging your rights. A caveat ensures your interest is recorded and protects you from being unfairly excluded or disadvantaged.
Common situations when you a person might lode a caveat over a property include:

• A buyer under a contract who has not yet completed settlement;
• A lender with an unregistered security over land;
• A party contributing to the purchase price who is not listed on the title;
• Someone granted a right to purchase land in the future;
• A builder or developer with a contractual entitlement to ownership post-completion.

Without a caveat, the registered owner can transfer or encumber a property without the knowledge or permission of another party with an interest in that property. With a caveat, the Queensland Titles Office will refuse to register most new dealings unless a caveatable interest is resolved.

What is a caveatable interest?

Not every claim or expectation of an interest will give rise to a caveatable interest. A caveatable interest is typically a legal or equitable proprietary interest in land; which means it relates directly to ownership or control over the land, and not just a personal or contractual right.
Persons with caveatable interests could include:

• a purchaser under a valid and unconditional contract for sale;
• an unregistered mortgagee who holds a signed mortgage deed;
• a beneficiary to a fixed, constructive, resulting or implied trust where the trust expressly grants an interest in a property;
• a trustee in bankruptcy following the vesting of a property;
• a party with an equitable charge over the land, such as a loan agreement secured over property.

Some examples of interests which are not caveatable include:

• a beneficiary under a discretionary trust;
• a mere promise or expectation of future ownership;
• a right to sue for damages (e.g. breach of contract without a proprietary link to the land); and
• a license to use land (e.g., permission to occupy without an estate or interest).

What’s the catch?

Lodging a caveat without proper grounds can lead to its removal and financial liability.
Caveats are a temporary notice of a person’s interest land and are not used as permanent notice of their interest.
A caveat’s purpose is to allow time for parties to apply to the Court to enforce or determine an interest in land. Accordingly, as discussed below, a person seeking to lodge a caveat should always be prepared to commence legal proceedings to enforce their interest in the land recorded by their caveat.
Determining whether someone has a caveatable interest requires legal analysis.
You should always seek advice from a lawyer before lodging a caveat.

How long does a caveat last?

A caveat does not last forever. It will remain in place until, inter alia:

• it is voluntarily withdrawn by the caveator;
• it is removed by court order;
• it is cancelled by the Titles office; or
• it lapses automatically.

When will a caveat lapse?

Some caveats—such as those by the registered owner or under instalment contracts—may be non-lapsing unless otherwise challenged in court.
There are various situations where a regular caveat may automatically lapse. Importantly for litigants, a caveat will automatically lapse three months after it lodged unless the caveator:

• commences legal proceedings in a Court of competent jurisdiction which specifically seeks to establish the caveatable interest recorded in the caveat; and
• notifies the Titles Office by depositing a Form -14 Notice of Action with the Titles Office.

So long as the above steps have been completed, the caveat will remain in force until the proceedings are determined by the Court.
A caveator must be ready to immediately commence Court proceedings after lodging a caveat because that is essential to preventing the caveat from lapsing.

Consequences of Improperly Lodging a Caveat

Improper use of caveats can carry serious legal consequences. Lodging a caveat simply to delay a sale, gain leverage in a dispute, or harass a party is considered an abuse of process and can result in penalties.
If a caveat is lodged without reasonable cause or a valid interest:

• It may be summarily removed;
• The caveator may be ordered to pay damages for any loss or delay suffered by the owner or others; and
• Court costs and legal fees may also be awarded

It is essential that a caveator has genuine caveatable interest in a property before considering lodging a caveat.

Tips for Property Owners: Dealing with a Caveat

If you are a property owner on the receiving end of a caveat, you might consider:

• consulting a lawyer who can advise you on removal, lapsing notices, or defending Court proceedings;
• negotiating with the caveator if the interest is genuine but needs resolving; and
• serve the proper notices to remove the caveat, if it is unfounded or malicious.

Conclusion

Caveats are an important part of Queensland’s property law, offering protection to individuals and entities with unregistered or equitable interests in land. However, they should not be used lightly. Lodging a caveat:

• without a valid legal basis;
• without being prepared to commence Court proceedings; or
• without following the correct procedures,

can lead to significant financial and legal consequences.

Whether you’re considering lodging a caveat, challenging one, or responding to a notice, it’s essential to seek qualified legal advice to protect your rights and avoid unnecessary litigation.

How Rose Litigation Lawyers Can Help

At Rose Litigation Lawyers, we regularly act in relation to residential and commercial property disputes. Our commercial litigation team has deep experience in complex disputes, and we are focused on achieving remarkable outcomes for our clients.
Whether you are seeking to enforce your rights, respond to allegations, or resolve a dispute before it escalates, we provide timely, strategic, and commercial advice tailored to your circumstances.

The content of this publication is intended to provide a summary and commentary only. It is not intended to be comprehensive nor does it constitute legal advice, and has been prepared based on applicable legislation and case authority at the date of publication. You should seek legal advice on specific circumstances before taking any action.