Conveyancing- Caveats and Cautions

Caveats and Cautions

Caveats and cautions are both inhibitions, prohibitions and restrictions- These are the three types of restraints that can be registered against a title preventing the owner from disposing of the land.  Caveats are referred to as cautions under the RLA.

Who can lodge Caveats and Cautions

S57 RTA and 131 RLA- Any person claiming a contractual or other right over land amounting to a defined interest capable of creation by a registrable instrument, e.g. a lease, may lodge a caution with the Registrar against any dealing which is inconsistent with his interest. Entry of a transaction, with respect to such land, may not then be made unless the cautioner has received notice. Lodging of a caveat or caution without reasonable cause can lead to a remedy in damages. Notice and effect of Caution S132 RLA- the registrar shall give notice in writing of a caution to the proprietor whose land, lease or charge of affected. So long as the caution remains registered, no disposition which is inconsistent with it shall be registered, except with the consent of the cautioner or by order of the court.

Withdrawal/removal of the caution

S133 RLA- A caveat or a caution can be removed by the person lodging the same, or by order or the court, or by the Registrar, if such person fails to remove it after being served with a notice to do so by the Registrar. The registrar may, on the application of ant person interested, serve notice on the cautioner warning him that his caution will be removed at the expiration of the time stated in the notice. If at the expiration of the time stated the cautioner has not objected, the registrar may remove the caution.

Second caution in respect to the same matter

S134 RLA- The registrar may refuse to accept a further caution by the same person or anyone on his behalf in relation to the same matter as a previous caution.

Wrongful Caution

S135 RLA provides that any person who lodges or maintains a caution wrongfully and without reasonable cause shall be liable, in an action for damaged at the suit of any person who has sustained damage, to pay compensation to such person.