Did you know that the word “caveat” derives from the Latin word for “beware” – it is a warning or caution.
Most people do not realise that you cannot lodge a Caveat unless you can demonstrate that you have a direct interest in the land you intend to lodge a Caveat on, such as its maintenance, upkeep, purchase or some other entitlement to the land.
A caveat cannot be lodged if someone owes you money as this does not constitute an actual interest over the debtor’s land. There are, however, other avenues that can be investigated in order that you have a better chance of recouping the debt owed to you.
One particular way is to look at a mortgage over the debtor’s land by way of a loan agreement so it can become a registered interest on the Certificate of Title of the land, if the debtor agrees.
However, a mortgage secured over the land will not help you recoup money immediately, if at all, if the debtor does not have significant equity in the land.
Other avenues to recover debt from the debtor are to make a claim at Court and have judgment made against that person. Once judgment has been ordered, this can then be registered over the land by way of the following options:
- charging order;
- bankruptcy proceedings; or
- a warrant of sale can also be explored over non-land assets.
There are various avenues to investigate in order to be able to recoup some or all of the money owed to you, however, ascertaining whether the debtor has any assets is the first port of call prior to pursing the debt so that you are not incurring further expense for little to no benefit to you.
If you require assistance or further information, please contact us on 8523 8400 (Gawler) or 8211 6500 (Adelaide) to arrange an initial, no-obligation consultation. Alternatively, send an email to firstname.lastname@example.org and we will contact you.