A caveat is a notice on a title claiming an interest in the land. Why it blocks dealings, and how it affects a sale.
A caveat is a notice registered against a record of title claiming an interest in the land, which prevents most further dealings with the title until it is removed or resolved.
A caveat requires a caveatable interest — a genuine legal or equitable interest in the land, not merely a debt or a grievance. Examples include a purchaser under an unregistered agreement, a beneficiary under a trust, or a party to a relationship property claim.
A caveat generally blocks registration of a transfer. It must be removed before settlement, and discovering one late is a common cause of delay — sometimes of failed settlements.
Either the caveator withdraws it, or the registered owner applies to LINZ to lapse it, which gives the caveator a limited window to apply to the High Court to sustain it. Court action is expensive and slow.
Lodging a caveat without a proper interest is risky. A caveator who lodges without reasonable cause can be liable for losses suffered by the owner. It is not a general-purpose way to secure a debt.
Check the title early in due diligence. A caveat found in week one is a manageable issue; one found the week before settlement is a serious problem.
Last reviewed: 1 August 2026 · General information only, not legal advice.
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