It is common for family members to enter into a Deed of Loan when lending money to a party purchasing a property.
One of our recommendations to coincide with a Deed of Loan is that it should be secured. We recommend you do this by lodging a caveat over the to protect the lenders interest.
What is a caveat?
In simple terms a caveat means “beware”. When a caveat is lodged it warns people that someone has a priority interest in respect to that property. You can only lodge a caveat over real property where there is evidence of reasonable cause. Lodging a caveat falsely is a serious matter.
Speak to our friendly property team at Adams & Partners Lawyers if you would like any further information on preparing a Deed of Loan and lodging a caveat on 02 4721 6200.
Written by Megan Johnson