Challenging a Caveat in NSW

A caveat acts as a statutory injunction preventing registration of dealings against real property title. Lodging a caveat without a caveatable interest exposes the caveator to compensation claims under section 74P of the Real Property Act 1900 (NSW).

Under NSW real property law, an owner can issue a lapsing notice requiring the caveator to seek a Supreme Court order extending the caveat within 21 days.

If the caveator fails to prove a genuine caveatable interest (such as a charge or constructive trust, rather than a mere personal debt), the caveat is removed and substantial costs orders are typically granted.