How Long Does a Caveat Last in Victoria?

Imagine you have just shaken hands on a smart weatherboard in Coburg. You are picturing weekend barbecues, your dog snoozing in the sun, maybe even a veggie patch by spring. Then your conveyancer rings: the title search shows a caveat. Settlement stalls, your plans wobble, and stress levels climb.

If you live, invest, or build in Melbourne, knowing how long a caveat sticks to a Victorian land title is not trivia. It can decide whether finance approval stays alive, whether your renovation dreams start on time, and sometimes whether a sale collapses.

This guide unpacks how long a caveat lasts, how it can disappear, and what to do if you are the owner or the person who lodged it.

Does a Caveat Ever Expire on Its Own?

In short, no. A Victorian caveat does not come with an expiry date. Once it is on the certificate of title, it stays until someone takes formal steps to remove it. The Transfer of Land Act 1958 (Vic) leaves the ball firmly in human hands. That means you cannot simply wait out the clock if you want to deal with the property.

Four Ways a Caveat Can End

Voluntary Withdrawal of Caveat

The simplest solution: the caveator signs a Withdrawal of Caveat form and lodges it with Land Use Victoria. The notation vanishes, dealings proceed, everyone breathes out. Costs are minimal, but it relies on goodwill; if the caveator is digging in their heels, you will need plan B.

Lapsing Notice Under Section 89A

If cooperation is absent, the registered proprietor, purchaser, or mortgagee can apply for a lapsing notice. The Registrar then serves the caveator with written notice that the caveat will lapse at least 30 days after service unless the caveator starts court or VCAT proceedings and tells the Registrar.

Most caveators do not relish a court battle, so the caveat quietly drops away. Budget roughly 55 days from application to removal to cover processing time and Australia Post.

Court or Tribunal Order (Sections 90 and 90(3))

Need the caveat off in a hurry because refinancing is due next month? You can apply directly to the Supreme Court for an order to remove it. The court weighs the evidence, often at lightning pace, but legal fees rise sharply. If you win, the court may order the caveator to pay costs, yet the upfront expense is still heavier than a section 89A path.

Automatic Removal After Settlement

Purchaser's caveats, commonly lodged after signing an off‑the‑plan contract or standard sale, disappear once your transfer is registered at settlement. So in practice they last only until settlement day. However, if construction drags or finance delays occur, the caveat remains an active gatekeeper.

The Thirty‑Day Countdown Explained

A lapsing notice must give not less than 30 calendar days. The clock starts the moment the notice lands in the caveator's letterbox, not the day it is popped in the post. The caveator has two tasks before the deadline:

1. File a court or VCAT proceeding that asserts the interest in the land
2. Notify the Registrar, usually via the electronic dealing platform PEXA, that those proceedings have begun

Miss either step and the caveat lapses automatically. Courts are reluctant to resurrect a lapsed caveat, so diary reminders are crucial.

Real‑Life Caveat Scenarios Around Melbourne

Off‑the‑Plan Towers in Southbank

Developers nearly always require buyers to lodge purchaser's caveats to secure their deposit. These caveats can linger for years while cranes and concrete inch skyward. Keep tabs on construction milestones and stay in touch with your conveyancer, because the caveat protects your equity until the title is issued.

Family Law Caveats in Balwyn

During a separation, one spouse may caveat the former matrimonial home claiming a constructive trust. The other spouse can trigger a lapsing notice if settlement negotiations stall, but the lodging spouse usually files Family Court proceedings inside 30 days to keep the caveat alive.

Builder's Charges in Frankston

Builders sometimes lodge caveats for unpaid invoices. If you dispute the debt, a section 89A application is the standard removal tool. Until that caveat comes off, you will struggle to refinance or sell, so time truly is money.

Private Lender Caveats in Footscray

Short‑term lenders frequently lodge "caveat charges" instead of full mortgages. These remain until the loan is repaid and the lender files a withdrawal. Always insist on written undertakings and follow up confirmation because paperwork can slip through cracks.

What Happens if Everyone Ignores the Caveat?

Leaving a caveat untouched can feel harmless if you are not selling right now, but risks build fast:

• Stalled transactions: Transfers, mortgages, even simple leases grind to a halt without the caveator's written consent
• Finance delays: Banks do not fund settlements while a caveat shadows the title, and approvals can lapse
• Legal costs: If a court later decides the caveat was unsustainable, the caveator may face hefty indemnity costs
• Opportunity loss: The property cannot move with the market while shackled by uncertainty, which can hurt capital growth

Defending Your Caveat: Moving Faster Than 30 Days

If you genuinely hold an interest perhaps you advanced funds and took an equitable mortgage get your evidence in order early. Draft an originating motion, gather your affidavits, and file well before the deadline. Notify the Registrar through PEXA with the stamped court documents attached. Delays signal weakness and can tip the cost decision against you.

Owner and Buyer Caveat Checklist

Frequently Asked Questions About Victorian Caveats

Is a caveat the same as a mortgage?
No. A mortgage is a registered interest that gives the lender power to sell. A caveat is simply a notice that blocks dealings until the claim is resolved.

Can I extend the 30 day period after receiving a lapsing notice?
The Registrar cannot grant extra time. Your only lifeline is starting court or tribunal proceedings before the cut‑off.

Will a caveat affect my land tax bill?
Not directly, but delays caused by caveats can mean you miss objection windows or valuation deadlines.

Word to the Wise: Timing Is Everything

A caveat can be your shield or your shackles. It lasts precisely as long as the caveator wants it to, unless the owner acts. When a lapsing notice arrives, the thirty day clock is unforgiving. Whether you are buying a townhouse in Carlton North or subdividing a block in Pakenham, dealing with caveats early will keep your plans humming.

Conclusion: Ready to Act?

Caveats do not fade; they are removed. If one stands between you and settlement, do not wait for luck or time to solve it. Pearson Chambers Conveyancing works with Melbourne clients daily to lodge, defend, or remove caveats and steer transactions back on track.

Need clear advice and a free Section 32 contract review?
Phone: 03 9969 2405
Email: contact@pearsonchambers.com.au