MKG-newWhen can somebody lodge a caveat over land?  The answer is when they have an interest over the land.

What exactly does it mean to have an interest over the land?  Common examples of caveatable interests are interests of a purchaser under a contract for the sale of land, interests of a mortgagee and somebody who contributes to the purchase price of a property.  Options to purchase land can also invoke a caveatable interest.

Interests that do not give you a caveatable interest over the land are, debts (that do not involve land), or any other contractual rights that do not involve the land.

A more difficult question is if there is a contract between the owners of the land and a builder.  This wouldn’t ordinarily give rise to a caveatable interest over the land unless the interest is elevated by the owner giving the builder a charge over the land.  In that instance the contractual right would become a caveatable interest over the land and a caveat could be lodged.

This type of scenario was considered in Composite Buyer v Soong (1995) 38 NSWLR 286.  This was a matter where the owners of the land gave a charge to the lenders of money.  This was held to be a caveatable interest as it was expressly stated that a charge was to be put over the property.

In the case of Epple v Wilson [1972] VR 440 VSC, an employee owed his employer money and they reached an agreement that said in part ‘Any proceeds due to me from the sale of my house is to be paid to (the employer)’.  This was held not to be a caveatable interest as although the money was to come out of the proceeds it did not create an interest over the land.

If you should have any queries in respect to caveats, please do not hesitate to contact the offices of Everingham Solomons because Helping You is Our Business.

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