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What are all these things on my property’s title?

Writer: Paul JenningsPaul Jennings

Updated: Oct 8, 2022

Property titles (called a record of title) include details of any registered interests on them. It is unusual to see a title without at least one noted interest. If you are considering purchasing a property it is critical that these interests are reviewed and you are provided with an explanation of them. As the interests are registered they will usually apply to the property on an ongoing basis and they could have a significant impact on your proposed use of the property.



Some Common Interests noted on Property Titles


Easements


An easement is the legal right of an owner of land to use other land for a particular purpose, but without any right to possession of that property. There are many different types of easements but some common ones include:


Right of Way – Used for driveways or where the owner of a property needs to cross over another property.

Right to Water and Drainage – Used where a property’s water supply or drainage crosses another property.

Right to Convey Electricity, Telecommunications, Computer Media and Gas – Similar to the water and drainage easement.

Party Wall – Where two buildings (and properties) share a common wall.


Covenants


A land covenant is a promise made by one person as landowner to another landowner to either do or not do something in respect of their land. The promise runs with the land and will usually bind future owners. A common example of a land covenant is where a developer will impose covenants on new sections to ensure that future owners will maintain a certain standard of building to protect the value of the whole development.


Consent Notices

Consent notices are registered on the title to a property at the time of a subdivision to impose ongoing conditions or restrictions by the local Council. The conditions or restrictions are derived from the council’s consent and are registered on the title to ensure the conditions continue to apply to future owners.


Mortgage


A mortgage is registered to provide security for another obligation, most commonly a home loan. In the event of default under the home loan, the lender has certain rights in respect of the property, including the right to sell the property under a mortgagee sale. If you are purchasing a property the vendor’s existing mortgage will be discharged prior to transfer.


Caveat

A caveat is registered on the title to a property to prevent the owner from dealing with the title to the property on the basis that the person who lodged the caveat has some interest in the property. Commonly a caveat will be registered to protect a purchaser’s interest under a sale and purchase agreement or based on lending made to the property owner. A caveat prevents the landowner from doing anything with the title to the property without the caveator’s consent. If there is a caveat registered on a property you are purchasing investigation should be made as to its purpose and that it won’t cause any issues at settlement.



Conclusion


As you can see from the examples above registered interests can have a significant impact on a property and what can be done with the property. If you are considering purchasing a property then a detailed review of the registered interests should be undertaken and advice received in respect of those interests.


Contact Samson Legal today for a review of any interests registered on a title you are looking at purchasing.

 
 
 

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