Priority notices were introduced in November 2016 under the Real Property Amendment (Electronic Conveyancing) Act 2015.
A Priority notice is a form of land dealing which, once registered on title:
- acts as a notice to the public that someone intends to lodge a dealing on a relevant title (for example, a transfer, lease or mortgage); and
- temporarily (ie for the duration of the priority notice) prevents the registration of other dealings in order to preserve the priority-on-title of the dealing covered by the priority notice. Any subsequent dealings are noted on title as 'unregistered dealings' until the priority notice is withdrawn or lapses.
It is thought that priority notices will be a useful tool in the responsible e-conveyancer’s armoury – if genuine land transactions are flagged by a priority notice, it is hoped that identification of potentially fraudulent transactions will be quicker and easier. Thus, for example, if you are intending to lodge a transfer or mortgage, you can register a priority notice to hold the transferee’s or mortgagee’s place on title up until settlement.
Read more on how they work, their pro's and con's and their nature with regard to caveats on Swaab