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Dispute and Litigation Services
Caveat Lawyers
How and When Caveats Are Used
Caveats can be lodged on a property to protect an interest that someone might have. This arises only in specific circumstances, typically if there is a loan between two parties.
There may be a loan agreement and the borrower owns an asset, such as a house. The person who is lending money will try and minimise the risk of non-repayment by using that asset of the borrower as security. In this case, they may have inserted a clause in the agreement expressly stating that they are able to lodge a caveat on your property as security for repayment of the loan.
The effect of a caveat most typically is to stop the sale of the property. That is, a borrower may try and sell a property it owns to avoid repaying a loan or debt. With a caveat, such a transaction is stopped and only once the lender has received their funds the caveat can be removed.
The caveat situation is complex because if a lender is owed money, a caveat can only be expressed when an interest arises. The words of the caveat can make a great difference in the resolution of a dispute, so it is important to have a caveat properly prepared to ensure any money owed is received with a minimum of fuss.
Alternatively, many times caveats are misused, or they have been lodged where there is no entitlement to do so. In such cases, we can assist in preparing what is known as a lapsing notice which is filed with the court to have any such caveat removed.
Caveats can be a powerful tool to minimise risks to a lender and place significant obligations on the borrower, but equally, the technical and legal aspects surrounding the use of caveats and their effect are complex and the proper advice should be obtained from your lawyer when preparing a caveat, in understanding the terms and implications of a caveat, or to have one removed.
Protecting Your Interests Through Any Means
Gavel & Page contract lawyers bring a thorough understanding of loans and property related matters incidental to loans, such as caveats. We can advise how they are used and when and take care of all of the details. Get in touch with our expert team today and ensure your interests are protected.
Testimonials
Gavel & Page handled a contract dispute we were involved with which would have cost us over $300k if unsuccessful, but they were successful. Not only did they deal with it expertly but with calm, confidence and grace. Excellent work.
Gavel & Page Lawyers looked over a lease for me, advised me on it and negotiated its terms. They also prepared all the paper work, advised and assisted me in the sale of my business.They were efficient and effective, getting me the result I was after. Highly recommended.
Gavel & Page Lawyers are now our “go to” firm for any contract or property related transactions. They were referred by a family friend and we were not disappointed. They reviewed all the documents and advised us on all the issues surrounding our purchase of a commercial property, ensuring the transaction ran smoothly and relieving a lot of the stress involved They also reviewed, drafted and settled commercial terms which were fundamental to our business. They explained the terms in a way that helped us understand their implications and significance which was of great benefit. A pleasure to deal with, down-to-earth, reliable, efficient and competent. Great job! Highly recommended!
