Caveat

Property law is an important area of law that deals with the ownership and use of land and buildings. In New Zealand, one specialisation within property law is called "caveats." A caveat is a legal notice that can be placed on a property to protect someone's interest in it.

What is a Caveat?

A caveat acts like a warning to anyone who wants to buy or sell the property. It tells them that someone else has a claim or interest in that property. For example, if you lend money to someone to buy a house, you might put a caveat on that house to ensure you get your money back if they don’t pay you.

Why Use a Caveat?

People use caveats for various reasons. Here are a few examples:

• Loan Security: If you lend money to someone for a property purchase, a caveat can protect your investment.
• Partnership Agreements: If you co-own a property with someone, a caveat can help ensure that neither party can sell the property without the other's agreement.
• Family Trusts: If a property is held in a family trust, a caveat can help protect the trust's interests.

How to Place a Caveat

To place a caveat, you need to fill out a form and submit it to Land Information New Zealand (LINZ). It’s important to provide clear reasons for the caveat, as it can affect the property’s ability to be sold or mortgaged.

Removing a Caveat

If the reason for the caveat no longer exists, it can be removed. This usually requires agreement from the person who placed the caveat or a court order if there is a dispute.

Caveats are a useful tool in New Zealand property law, helping to protect interests in property. If you think you might need to place a caveat or have questions about property ownership, it’s a good idea to seek legal advice to understand your rights and responsibilities.