A caveat on your title can get in the way, especially if you are trying to sell or refinance. The good news is there are established ways to remove one. Which path is right depends on your situation and whether the person who lodged the caveat will cooperate. Here are the three main options in Victoria.
The simplest way to remove a caveat is for the person who lodged it to withdraw it. If the interest the caveat was protecting has been resolved, for example a debt has been paid or a dispute has been settled, the caveator can lodge a withdrawal of caveat with Land Use Victoria and it comes off the title.
Where the caveat was lodged for a legitimate reason that no longer applies, a straightforward request, often through your lawyer, is enough to get it withdrawn.
If the caveator will not withdraw, the owner can apply for a notice that requires the caveator to act. This is commonly called a lapsing notice. Once it is served, the caveator has a limited time, generally 30 days, to go to the Supreme Court to support their caveat.
If the caveator does nothing within that time, the caveat lapses and is removed. If they do commence proceedings, the matter goes before the court to decide whether the caveat should stay. A lapsing notice is a useful way to force the issue when a caveator is sitting on a caveat that may not be justified.
The owner can also apply directly to the Supreme Court for an order that the caveat be removed. The court can order removal where the caveator does not have a valid caveatable interest, or where the caveat should not remain.
This is the most involved and expensive route, but it may be necessary where a caveat is holding up an important dealing and the other options are not suitable. The court can also order the caveator to pay compensation if the caveat was lodged without reasonable cause.
The best approach depends on the circumstances. If the underlying issue is resolved, a withdrawal is quick and cheap. If the caveator is unresponsive but the caveat is likely invalid, a lapsing notice puts the ball in their court. If time is critical, a court application may be the fastest path to a result.
Getting this wrong can waste time and money, so it is worth taking advice on which route fits your situation before you act.
If a caveat is standing between you and a settlement, time is not on your side. Removal can take days or weeks depending on the method, and a lapsing notice runs on a fixed timetable. The earlier you deal with a caveat, the more options you have and the less likely it is to threaten your settlement date.
Orange Legal Group advises property owners on removing caveats and can act quickly to protect a pending sale or refinance. Speak to a property lawyer about your options.
It depends on the method. A withdrawal by the caveator can be quick. A lapsing notice runs on a fixed timeframe, generally giving the caveator 30 days to act. A court application takes longer. The right method depends on your situation and how urgent it is.
An owner can pursue removal, but the process involves strict requirements and timeframes, and a misstep can cost time and money. Given caveats often arise in a dispute or before a settlement, it is usually best to have a lawyer act for you.
A lapsing notice requires the person who lodged the caveat to support it in the Supreme Court within a limited time, generally 30 days. If they do not, the caveat lapses and is removed from the title.
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