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ARTICLE · 28 JULY 2023

Will a caveat protect a lender?

McCarthy Durie Lawyers
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Lenders frequently file caveats to protect their interest in the property until settlement is finalized.

AustraliaReal Estate and Construction
Nathan Hardman
Nathan Hardman
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Lenders frequently submit caveats to safeguard their interest in the security property they are lending against until the loan is settled. However, it is crucial for lenders to verify their eligibility to lodge a caveat beforehand. If a caveat is lodged without a valid claim, lenders expose themselves to significant liability. Additionally, it is important to understand the common circumstances in which caveats can be overridden.

Definition of a Caveat:

A caveat is a legal injunction that prevents the Registrar-General from registering certain transactions or plans associated with a property's title until the caveat is removed or consent is obtained.

When do Lenders have a Legitimate Claim for a Caveat?

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