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A caveat is a statutory injunction: it freezes the register to protect an unregistered interest. Because that is a powerful thing to do to someone else’s land, every state gives the owner a way to test it. The mechanisms differ.
At a glance
| Jurisdiction | Act | Does it lapse automatically? | Owner’s notice period |
|---|---|---|---|
| NSW | Real Property Act 1900 | No | 21 days after lapsing notice |
| Victoria | Transfer of Land Act 1958 | No | At least 30 days under s 89A |
| Queensland | Land Title Act 1994 | Yes, after 3 months, unless by consent or proceedings started | 14 days |
| WA | Transfer of Land Act 1893 | No | 21 days under s 138B |
| SA | Real Property Act 1886 | No | 21 days |
| Tasmania | Land Titles Act 1980 | No | 30 days |
| ACT | Land Titles Act 1925 | No | Notice procedure through the Registrar-General |
| NT | Land Title Act 2000 | Yes, after 3 months, unless by consent or proceedings started | 14 days |
These are summaries. The detail, exceptions and forms differ, and a solicitor should confirm the position for a particular title.
The Queensland and NT rule
In these two jurisdictions an ordinary caveat has a built-in life of three months. To keep it alive the caveator must start court proceedings to establish the interest and tell the registrar. The major exception is a caveat lodged with the registered owner’s consent. That is why caveat loan documents in Queensland and the NT include a signed consent to the caveat, lodged with it. See caveat loans in Queensland.
Everywhere else
The caveat has no expiry date. It ends when the caveator withdraws it, when a court orders it removed, or when the owner uses the notice procedure and the caveator fails to respond in time. The period is short by design: 21 days in NSW, WA and SA, 30 days in Victoria and Tasmania.
What this means for a borrower
A lapsing notice is not a way to escape a legitimate loan. The lender’s interest comes from a charge the owner signed. Served with a notice, the lender will obtain a court order extending the caveat, and most loan agreements make the borrower liable for those costs. The procedure is useful where a caveat has been left on title after repayment, or lodged with no real basis. See how a caveat is removed.
What this means for a lender
Drafting matters. The caveat must describe a real interest, the charging clause must actually create it, and in Queensland and the NT the owner’s consent must be lodged. A caveat that fails any of those can be lost.
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Can I get rid of a lender's caveat by serving a lapsing notice?
Not if the loan is genuine. A lender with a valid charge will obtain the court order within the notice period, and the legal costs of doing so are normally added to the debt.
What happens to the loan if the caveat lapses?
The debt is still owed. The lender loses its protection on title, but keeps its rights under the loan agreement, including any right to call for a registered mortgage.
Who pays if a caveat is wrongly lodged?
A person who lodges or maintains a caveat without reasonable cause can be ordered to pay compensation for the loss caused.