Section 90 Caveat Lapsing Notice for Melbourne Buyers

A fresh title search lands just before settlement and shows a caveat that wasn’t expected. The usual worry is simple: ‘Can I still buy the property, or has settlement fallen apart?’

The short answer: A caveat on a Victorian title does not automatically end your purchase, but it can stop the transfer from being registered until it is removed, withdrawn, or dealt with under the Transfer of Land Act 1958 (Vic). A section 90 caveat lapsing notice starts when a transfer or other dealing is lodged for registration, and the caveat will usually lapse after 30 days unless the caveator obtains a court order delaying registration. A vendor may also try to clear the caveat earlier by agreement or through a section 89A application supported by a Victorian legal practitioner’s certificate.

What does a caveat mean for settlement in Victoria?

A caveat is a warning recorded on the land title that someone claims an estate or interest in the property. It does not prove the caveator is right, but it tells Land Use Victoria that a competing claim exists.

For a buyer in Brunswick, Glen Iris or Footscray, the practical issue is registration. You may be ready to settle through PEXA, your lender may be ready to advance funds, and the removalists may be booked. If the caveat blocks registration of the transfer, settlement can be delayed unless the caveator withdraws, consents, or the caveat lapses.

That is why a pre settlement title search matters. A Section 32 statement only reflects the title position at the time it was prepared. A caveat lodged after contract signing may only appear when your conveyancer orders a fresh title search close to settlement.

How does a section 90 caveat lapsing notice work?

A section 90 notice is triggered by the lodgement of a transfer or dealing for registration. The Registrar of Titles gives notice to the caveator that the dealing has been lodged, and the caveat will generally lapse after 30 days unless the caveator takes court action that actually delays registration.

The key point for buyers is timing. Section 90 is not a same day fix. It is a statutory waiting period that protects the caveator’s right to ask the court to keep the caveat alive, while also giving the buyer and vendor a path forward if the caveator does nothing.

If the caveator wants to stop the transfer, they need more than an angry email or a rushed court filing. For a section 90 notice, the caveator must appear before a court and obtain an order directing the Registrar to delay registration, usually after giving an undertaking, security, or a sum the court considers enough to protect people who may suffer loss from the delay.

What can the caveator do within 30 days?

Within the 30 day section 90 period, the caveator can ask the court to delay registration. If the court makes that order, registration may be held back for the period the court allows.

If no order is made, the caveat usually lapses to the extent needed to let the transfer or dealing register. That means the buyer’s transfer can move forward once the registry process catches up.

There is a different process under section 89A. There, a person interested in the land can apply to the Registrar for a notice to be served on the caveator. The application must include a certificate from a person engaged in legal practice in Victoria saying, in their opinion, the caveator does not have the estate or interest claimed. If the caveator responds by giving proper notice that court or VCAT proceedings are on foot to substantiate the claim, the caveat may remain until those proceedings are dealt with.

What is the difference between section 89A and section 90?

Section 89A is the planned pre settlement pathway; section 90 is the pathway that can arise once a transfer or dealing is lodged for registration. Both involve a 30 day notice period, but they operate differently.

A section 89A application is usually used when a caveat is identified before settlement and the vendor says the caveator has no proper interest in the land. It needs a legal practitioner’s certificate, so your conveyancer may need to work with a solicitor.

Section 90, by contrast, is tied to the lodged transfer or dealing. It is often the fallback when the transaction reaches settlement and the caveat is still sitting on title. If you want more background on how long a caveat lasts, the key idea is that a caveat does not simply disappear with time. Someone must take a step to remove it, withdraw it, or cause it to lapse.

How can a caveat be removed before settlement?

Most Victorian caveats are removed in one of four ways. The right path depends on how close settlement is, how strong the caveator’s claim appears to be, and whether the caveator is willing to co operate.

Withdrawal by the caveator. This is usually the cleanest option. The caveator signs and lodges a withdrawal, often after a debt is paid, a family arrangement is documented, or the dispute settles.
Consent to registration. In some cases, the caveator may consent to a particular transfer or dealing without giving up their wider claim. This needs careful drafting because the buyer and lender need certainty about what can register.
Section 89A application. This can be used where a person interested in the land says the caveator has no proper estate or interest. The certificate must come from a Victorian legal practitioner, not just a conveyancer acting alone.
Court application under section 90(3). A person adversely affected by the caveat can ask the court to remove it. This may be considered where settlement is close and the caveat appears to have no proper basis, but it can add cost and stress.

Buyers often ask us about caveats on property titles because the words on the title search look more alarming than they feel once you understand the removal options.

What should Melbourne buyers do if a caveat appears late?

If a caveat appears before settlement, ask for a clear written plan straight away. Do not rely on vague promises that ‘it will be sorted’.

A sensible buyer side checklist is:

Ask your conveyancer for the current title search and caveat details.
Check whether the caveat was disclosed in the section 32 vendor statement.
Ask the vendor’s conveyancer which removal path is being used.
Confirm whether the caveator is withdrawing, consenting, or being served with a notice.
Tell your lender early, as some lenders will not settle until the title path is clear.
Keep records of extra costs caused by delay, such as penalty interest, booking changes or repeat inspection fees.

In our practice, we’ve seen this most often where a caveat was lodged by a former partner, family lender, or tradesperson, and the vendor assumed the issue had gone away years earlier. It had not. The buyer’s pre settlement search was the first time everyone treated the caveat as urgent.

Worked example: Glen Iris townhouse with a late caveat

Say you buy a Glen Iris townhouse with a 60 day settlement. The Section 32 statement looked clear when you signed, but 14 days before settlement your conveyancer orders a fresh title search and finds a caveat lodged by a builder claiming unpaid invoices.

The first question is whether the builder has a true caveatable interest, not just a debt claim. A debt by itself will not always support a caveat over land. The vendor’s side may need to negotiate a withdrawal, arrange consent, or ask a solicitor to consider a section 89A certificate.

From the buyer’s side, the focus is practical: keep the lender informed, press for a written plan, and avoid releasing funds unless registration can occur or your adviser is comfortable with the settlement arrangements. A caveat does not always end the deal, but it should change the level of caution.

What if the caveat was lodged without a proper basis?

A caveator can be exposed to compensation if they lodge a caveat without reasonable cause and someone suffers damage because of it. Section 118 of the Transfer of Land Act 1958 (Vic) gives the court power to order compensation where the legal test is met.

For buyers, this is usually a back end remedy rather than a settlement day solution. It may help if you suffer loss from a groundless caveat, but it does not replace the urgent need to get the title cleared or the registration path fixed. Your conveyancer can help you identify the issue, then a solicitor can advise on any claim.

Frequently asked questions

What is a caveat lapsing notice in Victoria?

A caveat lapsing notice is a formal notice under the Transfer of Land Act 1958 (Vic) that may lead to a caveat lapsing if the caveator does not take the required step within the notice period. A section 90 notice is linked to a transfer or dealing lodged for registration, while a section 89A notice follows an application by a person interested in the land.

How do I remove a caveat in Victoria before settlement?

A caveat can be removed before settlement by withdrawal, consent to the dealing, a section 89A application to the Registrar, or a court order under section 90(3). The best path depends on the settlement date, the caveator’s claim, and whether the caveator will co operate.

How long is the lapsing notice period for a caveat in Victoria?

The lapsing notice period is generally at least 30 days. Under section 90, the 30 days runs after the Registrar gives notice that a transfer or dealing has been lodged for registration. Under section 89A, the Registrar must not specify a date less than 30 days after service, or after the notice is put into the post if posted.

Can a caveator just file a Supreme Court proceeding within 30 days to keep the caveat alive?

For a section 90 notice, filing alone is not enough if the caveator wants to delay registration. The caveator needs a court order directing the Registrar to delay registration. For section 89A, the Act deals with notice to the Registrar that court or VCAT proceedings are on foot, so the pathway is different.

What is the difference between section 89A and section 90 caveat removal?

Section 89A is a pre settlement application to the Registrar supported by a Victorian legal practitioner’s certificate. Section 90 is triggered when a transfer or other dealing is lodged for registration and the caveator is given 30 days before the caveat lapses, unless a court orders registration to be delayed.

Can the vendor be sued for damages if a caveat delays settlement?

A vendor may face contract issues if they cannot provide the title promised under the contract or failed to disclose a known caveat in the Section 32 statement. A caveator may also face a compensation claim under section 118 if they lodged the caveat without reasonable cause and loss was suffered. The right claim depends on the contract, the title search history, and the reason the caveat was lodged.

Does my conveyancer or my solicitor handle the lapsing notice?

Your conveyancer usually handles title searches, settlement communication and the first round of practical steps. A Victorian solicitor may be needed for a section 89A certificate, court application, or advice on compensation. A good conveyancing team will tell you early when the matter needs solicitor input.

About the Pearson Chambers Conveyancing team

Pearson Chambers Conveyancing is a Melbourne focused conveyancing firm that helps Victorian buyers review contracts, check title risks and move through settlement with less stress. The team works with first home buyers across Melbourne every day, from auction contract reviews to PEXA settlement coordination. Caveats and lapsing notices are exactly the kind of title issue we look for before a buyer signs or settles.

Sources we consulted

Need help before you sign or settle?

If a caveat has appeared on your title search, or you want the Section 32 checked before you sign, contact Pearson Chambers Conveyancing for a complimentary Section 32 contract review. We’ll review the title position, explain the practical risks, and help you understand what needs to happen before settlement.

Email: contact@pearsonchambers.com.au

General information only, current as at the date of publication. Victorian conveyancing rules and legislation change frequently. Please contact the Pearson Chambers Conveyancing team for advice on your specific contract.