What is Private Caveat? Why It’s So Important?

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What is Private Caveat? Why It’s So Important?

What is Private Caveat?
A PRIVATE caveat is a formal legal notice to the world that you have an interest in a particular property or land. For example, a purchaser who has paid a deposit under a sale and purchase agreement could enter a private caveat on the land to prevent any further dealings related to the land, thus securing his or her interest in it.

What is the purpose of Private Caveat?
A private caveat is having the effect of preventing the registration of any subsequent dealings in regards to the land and serve as a notice to the world that the caveator is having registrable interest over the land. In normal terms of a Sale and Purchase Agreement (SPA), the buyer will pay a deposit of 10% of the purchase price upon signing of SPA. The balance 90% of Purchase Price will be paid in the later stage. In order to protect your interest on the said 10% payment, you are advised to lodge a private caveat.

The private caveat will be effective for how long once registered?
Once the land office receives the application, register it within 24 hours. The private caveat will be remained effective for 6 years if no one removes/cancel it.
The private caveat will lose its effect in two circumstances i.e. after six years from its presentation with land office and withdrawal by Registrar or Caveator himself. If you do not have any subsequent dealings in the land such as transfer and/or creation of charge, you may let the private caveat expire on its own without incurring any further costs.

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By | 2016-11-01T10:45:57+00:00 August 31st, 2016|Buying A Home, Home Loan Library, Latest News and Update|0 Comments

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