A caveat is a document that protects a person or companies interest in property. An interest or claim in a property must be established by a person or corporation seeking to lodge a caveat at Land Victoria. A caveat cannot be lodged over a person’s property simply because they owe you money. The question of whether someone has an interest in land is not always straight-forward and one which DGK Conveyancing can advise you before lodging a caveat over property.
By lodging a caveat  it warns potential buyers of the property that the person who lodged the caveat (“the caveator”) has an estate or interest in land. It does not mean that a potential buyer should not buy a property. The caveat must be removed before or at settlement and at the cost of the vendor.
The lodging of a caveat protects the interest claimed by the caveator to the extent that it prevents further dealings without notice. A property cannot be sold unless the caveat has been removed. In certain circumstances, a purchaser of a property can lodge a caveat to prevent the vendor attempting to sell the same property to another subsequent purchaser.