What are they and how do they work?
When a relationship breaks down in Queensland (whether it be matrimonial or de facto), it is often the case that a caveat needs to be registered against a property which forms part of the net asset pool available for division. A spouse or de facto who feels uncertain about the security of his/her share in the relationship’s properties sometimes resorts to lodging a caveat on the certificate of title.[1]
In a nutshell, a caveat is a formal document known as Form 11, to be lodged at the Titles Office with the Department of Natural Resources and Mines against real estate in Queensland. [2] The purpose of this is to stop the legal owner (and any other person) from selling the property or further registering other instruments against it, such as a loan/mortgage. It also stops the legal owner from being able to transfer the property to another person.[3]
Why Lodge a Caveat?
It is common for a property to be registered in one party’s name alone (the “registered owner”). That property may have been brought into the relationship by one of the parties or for tax/commercial purposes. Whatever the reason, lodging a caveat is to protect the interests of the party who is not on the title (the “other party”).
Person who may lodge a caveat[4]
Pursuant to s 122(1) of the Land Title Act 1994 a caveat may be lodged by:
• a person claiming an interest in a lot;
• the Registrar;
• a registered owner of the lot;