A caveat is in the nature of an injunction. In WA, it is generally lodged on a certificate of title to prevent certain dealings in the land or notify the public of the caveator's interest that affects the land.

The caveat itself does not create an interest - it should only be lodged where the caveator has an underlying interest that is sufficient to support the lodgement of a caveat.

There are three types of caveats that can be used in WA. The caveat used will act as a statutory injunction preventing the registration of instruments, either:

  1. absolutely (absolute caveat)
  2. until after notice is given to the caveator (notice caveat)
  3. unless the instrument registered is expressed to be subject to the claim of the caveator (subject to claim caveat).

Lodgement of a caveat is a relatively simple process. The main requirements are for the caveat to expressly set out the nature of the estate or interest claimed, and for it to be in the correct form and supported with the necessary evidence.

However, in Western Australia (and also in other states and territories including New South Wales, Victoria, Tasmania and the ACT) a person who lodges a caveat without reasonable cause is liable to pay compensation to any person who suffers loss as a consequence.

It is therefore important to first determine whether the interest sought to be protected is sufficient to justify the lodgement of a caveat. If it is, the type of caveat used must not be overly burdensome, having regard to the interest sought to be protected. For example, a tenant who has lodged a caveat over the tenanted property would generally only lodge a 'subject to claim' caveat, as this is all that is necessary to protect their leasehold interest. Lodgement of an absolute caveat in these circumstances could be challenged and expose the caveator to an action for compensation.

If the interest is not sufficient to support the type of caveat chosen and a court orders its removal, a corrected replacement caveat only takes effect from the date it is lodged, not when the original caveat was lodged. Competing interests may have been registered or protected by caveat in the interim, taking priority over the interest the subject of the caveat that was wrongly lodged.

Careful consideration should therefore be given to ensure the caveat lodged does not extend beyond the legitimate claim of the caveator.

© DLA Piper

This publication is intended as a general overview and discussion of the subjects dealt with. It is not intended to be, and should not used as, a substitute for taking legal advice in any specific situation. DLA Piper Australia will accept no responsibility for any actions taken or not taken on the basis of this publication.


DLA Piper Australia is part of DLA Piper, a global law firm, operating through various separate and distinct legal entities. For further information, please refer to www.dlapiper.com