+ Caveatable Interests

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Caveatable interests

Mere consent to the lodgement of a caveat does not create a caveatable interest. In Bellissimo-v-JCL Investments Pty Ltd [2009] NSWSC 1260, heard 2 November 2009, the Court held that if the parties had intended to create a charge, they would have been explicit and that in the circumstances it was more likely that the parties only intended to prevent the landowner from dealing with the property without the caveator's consent. The Court said a negative covenant like that did not create an interest in the land.

The lesson from the case is that (i) in order to create a caveatable interest, the relevant clause must give sufficient indication of such an intention and (ii) the clause must explicitly state that a charge is being created and (iii) stamp duty on the relevant documents must be paid before the caveat is lodged.

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