Quick answer
In Queensland, caveats are governed by the Land Title Act 1994 and lodged with Titles Queensland. A caveat records a claimed interest in land and stops most other dealings being registered without notice to the caveator. For a caveat loan, you agree in the loan documents to the lender lodging it. When the loan is repaid, the lender withdraws the caveat.
Key points
- Caveats sit under the Land Title Act 1994 (Qld)
- Lodged with Titles Queensland, usually electronically
- Your written agreement supports the lender's caveat
- Withdrawn by the lender once the loan is repaid
Caveat loans are one of the fastest ways to raise money against property in Queensland. They’re also one of the least understood. Many borrowers sign the documents without really knowing what a caveat is, how long it lasts or how it comes off the title. This guide explains the essentials in plain language. It’s general information, not legal advice, and your own solicitor should explain your documents before you sign.
What a caveat is
A caveat is a notice registered on the title of a property. The word comes from Latin and means “let them beware”. In practical terms, it warns anyone dealing with the property that someone else claims an interest in it.
In Queensland, caveats are governed by the Land Title Act 1994, mainly sections 121 to 131, and are lodged with Titles Queensland. Titles Queensland checks that a caveat meets the legal and administrative requirements before registering it. Importantly, registering a caveat doesn’t prove the claimed interest exists. If there’s a dispute, a court decides.
How a caveat protects a lender
Once a caveat is registered, most other dealings with the property can’t be registered while it remains, unless the caveator agrees or the caveat is removed. That means you can’t easily sell the property, refinance it or grant another mortgage without the lender knowing. That’s the protection a caveat lender relies on.
A caveat is not the same as a registered mortgage. A mortgage gives the lender a registered security interest with defined powers, including the power of sale on default. A caveat protects an interest the lender claims under its loan agreement. Because the protection is less direct, caveat loans usually cost more and run for shorter terms than mortgages.
Where your consent comes in
For a caveat loan, the lender’s interest comes from the documents you sign. A typical loan agreement includes a clause in which you charge the property with repayment of the loan and agree that the lender may lodge a caveat to protect that charge. Some lenders also ask you to sign a mortgage that’s held unregistered, to be registered later if needed.
Your agreement matters for two reasons. It gives the lender a genuine, documented interest to support the caveat. And it affects how the caveat is treated under the legislation, including how long it lasts. Ask your solicitor to explain exactly what you’re agreeing to and what powers the lender has if you default.
How long a caveat lasts
Titles Queensland explains that a caveat usually lasts from 14 days to three months, depending on the type of caveat and the steps taken, and that it can remain in effect until a court decides a dispute about the property. The rules treat different caveats differently, including those lodged with the registered owner’s consent.
For a borrower, the practical point is this: a caveat loan is short-term by design. Lenders typically plan to be repaid, or to replace the caveat with a registered mortgage, within a few months. If your loan term is longer, ask the lender how it will keep its security in place, and whether it intends to register a mortgage.
What happens when you repay
When you repay the loan in full, the lender lodges a withdrawal of the caveat with Titles Queensland. The title is then clear of the lender’s interest. In most cases, this happens electronically and quickly.
If you’re repaying from the proceeds of a sale or refinance, the withdrawal is coordinated as part of settlement. The lender provides a payout figure, receives its funds at settlement and the caveat is withdrawn at the same moment the new owner or lender takes over.
Before you sign, check:
- the fee the lender will charge to withdraw the caveat
- how much notice the lender needs to prepare a payout figure
- whether there’s a minimum interest period that applies even if you repay early
Selling while a caveat is on title
You can sign a contract to sell a property that has a caveat on it. But the transfer to the buyer usually can’t be registered until the caveat is withdrawn. In practice, your conveyancer arranges for the caveat lender to be paid from the sale proceeds at settlement, and the withdrawal is lodged at the same time. Tell your conveyancer about the caveat at the start so there are no surprises close to settlement.
Caveats you didn’t expect
When a lender searches your title, it may find caveats you’ve forgotten or never knew about: a builder’s claim, a family member’s interest, a purchaser’s caveat from an old contract or a previous lender’s caveat that was never withdrawn. These can delay a new loan. If you find one:
- identify who lodged it and why
- ask the caveator to withdraw it if the interest no longer exists
- get legal advice if they refuse
Our desk can order a title search early in the process to catch these before they cause delays.
Lodging without proper basis
The legislation protects owners against caveats lodged without a genuine basis. A person who lodges a caveat without reasonable cause may have to compensate anyone who suffers loss as a result. This is one reason reputable private lenders are careful to document their interest properly in the loan agreement before lodging.
Queensland compared with other states
Every state and territory has its own caveat rules. The broad idea is the same, but the details differ, including how caveats lapse, how an owner can challenge one and the forms used.
| State | Titles office |
|---|---|
| Queensland | Titles Queensland |
| New South Wales | NSW Land Registry Services |
| Victoria | Land Use Victoria |
| Western Australia | Landgate |
| South Australia | Land Services SA |
If your property is outside Queensland, the lender’s solicitor will follow the local process. See our location pages for state notes.
Questions to ask before signing a Queensland caveat loan
- Will the lender lodge a caveat only, or also hold or register a mortgage?
- What powers does the lender have if I default?
- How long does the lender expect the caveat to stay on title?
- What does it cost to withdraw the caveat when I repay?
- Is there a minimum interest period?
- What happens if the loan term ends before my exit is ready?
Our letter of offer checklist covers these and more.
Talk to us about a Queensland caveat loan
Our desk is based in Brisbane and arranges caveat loans over Queensland property every week. Tell us the property, what’s owed, how much you need and when. There’s no credit check when you first enquire, and your details aren’t sent around the market. Accurate answers help us brief the right lender.
See if you qualify, or read about caveat loans first.
Frequently asked questions
Does a caveat stop me selling my property?
It doesn't stop you agreeing to sell, but most dealings, including registering a transfer to a buyer, can't proceed while the caveat is in place unless the caveator consents or withdraws. In practice, the loan is repaid from the sale proceeds at settlement and the caveat is withdrawn at the same time.
How long does a Queensland caveat last?
Titles Queensland says a caveat usually lasts from 14 days to three months, depending on the type of caveat and the steps taken, and can remain in effect until a court decides a dispute. Your solicitor can explain how this applies to a caveat you've consented to.
Can a lender lodge a caveat without my agreement?
A lender must have a genuine interest in the land to lodge a caveat. For a caveat loan, that interest comes from the loan agreement you sign. Lodging a caveat without a proper basis can expose the caveator to compensation claims.
Who pays to remove the caveat?
The loan documents usually say the borrower pays the lender's discharge or withdrawal costs. Check the letter of offer so you know the amount upfront.