Case update: Lodging caveats with no basis is an expensive mistake

Long gone are the days when businesses could get away with lodging caveats on a person's property because they were owed money (without a specific agreement that gives rise to an interest in the land).

We are often asked to give advice on whether there is a sufficient basis to lodge a caveat. In each case the facts need to be carefully considered. A recent Supreme Court of Victoria case¹ is a reminder that the Court will only allow a caveat to remain on a property where there is a clear interest in the land.

Facts

• A company owned a property and entered into a contract of sale to sell the property.
• The defendant (Monique) was the ex-girlfriend of the company's director (Jonathan) and lodged a caveat over the property.