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A caveat lodged without a caveatable interest exposes the person who lodged it to a claim in damages

A worked RES examination question on caveats, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.

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The question

An owner discovers that a person with no genuine claim has lodged a caveat against his property, and that his sale has stalled as a result. The buyer's solicitor will not proceed while it stands, and the owner has already committed to another purchase.

Which statement most appropriately describes his position?

  1. A. A person who lodges a caveat without a caveatable interest may be liable in damages.
  2. B. A caveat once lodged cannot be removed, and the owner must negotiate with the caveator.
  3. C. A caveat is an order of the court and the owner has no means of challenging it at all.
  4. D. A caveat transfers a share of the ownership, which is why the sale cannot proceed.

The answer, and why

Answer: A

The rule. A caveat lodged without a caveatable interest exposes the person who lodged it to a claim in damages. It is a warning, not an order, and it confers no ownership.

Why A is correct. He has a remedy against the person who lodged it.

The other options.

  • B treats it as immovable
  • C as a court order
  • D as conferring a share of ownership.

Exam note. A caveat is easy to lodge and not free of consequence.

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