When a caveat is wrongfully lodged and maintained over a property the party affected may want to go about getting it removed and perhaps also seek compensation. Whether or not you can get compensation is not as simple as it might sound even if the party who lodged the caveat did not have a proper interest in the land. 

The issue was considered in New Galaxy Investments Pty Ltd v Thomson [2017] NSWCA 153 and in particular whether the requirements of s 74P of the Real Property Act 1900 (NSW) were met in that case. Essentially, anyone wishing to claim compensation needs to show the other side acted without "reasonable cause" and incidentally that it did not have an honest belief (based on reasonable grounds) that it held a caveatable interest. Often such reasonable grounds will  exist if a solicitor recommended that a caveat be lodged (even where that advice turns out to be correct). 

Clearly, getting compensation for a caveat wrongly lodged is no simple matter. 

If you need to remove a caveat or seek compensation for one wrongly lodged contact us for more information. 

We are litigation lawyers in Sydney, NSW. who help with: real property act disputes, caveat disputes, getting notice of a caveat against property, extending a caveat after getting a lapsing notice, remove a caveat, issue a new caveat, compensation for caveats unreasonably lodgedpossession of property disputes, commercial lease disputes, vendor and purchaser disputes, mortgage disputes, challenging ownership to property due to fraud. For more info call us on T: +61 2 9199 4530.

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