What is a caveat in NSW?
A caveat in NSW is a warning notice registered against a land title under section 74F of the Real Property Act 1900 (NSW). It tells the Registrar-General and anyone searching the title that a third party claims an interest in the land. Once lodged, the Registrar-General will not register dealings that affect the caveator's claimed interest until the caveat is removed or lapsed. Caveats are not a freeze on the title — just a notice and freeze on dealings affecting the claimed interest.
What a caveat does
A lodged caveat prevents Land Registry Services from registering any dealing that affects the caveator's claimed interest — typically a transfer, mortgage, or further caveat. It stays on title until withdrawn, lapsed (after a section 74J notice), or removed by court order. Sold properties cannot settle with an unresolved caveat.
Who can lodge one
Anyone with a "caveatable interest" in NSW land can lodge a caveat under section 74F of the Real Property Act 1900 (NSW). Common caveatable interests include: being the purchaser under an exchanged contract of sale, holding an equitable mortgage, having a constructive or resulting trust interest, being entitled to specific performance of a contract, or holding an unregistered lease of more than 3 years.
Lapsing and removal
A landowner can serve a section 74J lapsing notice. The caveator then has 21 days to start proceedings claiming the interest — if they do not, the caveat lapses automatically. A landowner can also apply to the Supreme Court under section 74MA for removal of an obviously unsustainable caveat.
The risk of a wrongful caveat
Section 74P of the Real Property Act 1900 (NSW) makes the caveator liable in damages if the caveat was lodged without reasonable cause. Damages can include lost sale price, delay interest, and legal costs. Reported cases show awards of $5,000-$250,000+. A caveat is not a tactical weapon.
Common issues
- The caveatable interest must be stated with precision — vague claims lead to lapsing orders
- A lease of 3 years or less does not create a caveatable interest
- Contract of sale caveats must identify the contract date and parties correctly
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