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Tag: Certificate Of Title
Caveats and Registration
The Land Transfer Act 1952 in New Zealand provides for 5 types of Caveats.
A caveat is a warning to anyone to be aware. A Caveat is a notice which is registered against a title for any party to be aware that a claim is being made and sought. Caveats do not create new rights, they are used to protect existing ones. The person lodging a caveat must have reasonable grounds to register a caveat. If they don’t then they may be liable to compensate anyone who suffers a loss as a result of the registration.
The different types of Caveats are:
1. A caveat against bringing land under the Act.
2. A caveat against dealing with land.
3. A caveat against an application for prescriptive title.
4. A caveat as notice of interest in respect of compulsory registration of title.
5. A caveat to forbid issue of an ordinary certificate of title to replace a certificate limited by parcels.
Other types of Caveats can be registered by other statutes. As an example Section 42 Property Relationship Act 1976, where a spouse is claiming an interest in the other spouse’s property.
Or
Section 6 of the Joint Family Homes Act 1964 which allows a creditor to possibily lodge a caveat claiming an interest in the land due to debt.
The most common caveat we come across is the caveat against dealings. Generally a caveat is used by a person who wishes to protect an interest in land by preventing the registered proprietor from disposing of the land or dealing with it in a way that would affect the caveators rights and interests.
Caveats can be registered to protect a Purchaser under a long term Agreement for Sale and Purchase, or the Caveator is a lessess under an Agreement to Lease, or the Caveator is a mortgage under an agreement or unregistered mortgage, or the Caveator holds an option to purchase, or if the Caveator is a beneficiary under a Trust.
We would love to hear your comments and feedback 
Caveats
The registration of a Caveat over a property is giving notice that there is an existing right to claim. A party lodging a Caveat must have reasonable grounds to register the Instrument against the Title. Under the Transfer of Land Act 1952 there a five types of Caveats.
1. A caveat against bring land under the Act.
2. A caveat against dealing with land.
3. A caveat against application for prescriptive title.
4. A caveat as notice of interest in respect of compulsory registration of titles.
5. A caveat to forbid the issue of a certificate of title to replace a title limited by parcels.
Caveats can also be registered under other statutes such as Section 42 of the Property Relationships Act 1976 where a spouse claiming an interest in the other spouses property may lodge a claim by registration of a Caveat.
This can also happen under the Joint Family Homes Act 1964, which allows a creditor of an applicant who claims an interest in land which is subject to an applciation under the Act.
Stay posted for more terms used in Conveyancing and we look forward to your comments
