Reserve Bank of Australia announced its first rate cut since 2020, but what does this mean for you?

On 18 February 2025, the Reserve Bank of Australia (RBA) board made a decision to lower the cash rate to 4.10%. This has been the first rate cut since 2020.

The major banks have agreed that on 28 February 2025, all home owners will receive the rate cut, but they are making sure it takes up to 22 days to be passed on. The banks are under no obligations to pass on the interest rate cuts, and evidence shows that they have been more inclined to take a longer period of time to reduce the rates, then they are when they are given the go ahead to increase the rates.

It can be said that those homeowners with a mortgage of $500,000.00 will see a reduction of approx $77 in their monthly repayments.

While this rate cut is not significant, it does improve the borrowing power for first home buyers and will help those who want to negotiate with banks on a better home loan deal. Unfortunately, at this stage, it is not likely to reduce the property prices.

Should you require any legal assistance in your conveyance, or general advice on your mortgage repayments and property contracts, please contact Rachel Turk today on 0490 469 397 or by email at rachel@rmtlegal.com.au.

Do you have a Supplier, Contractor, or Friend who owes you money under an Agreement? Does your Agreement allow you to lodge a Caveat over their interest in Property?

If you have provided goods or services to someone under an agreement and they owe you money, you may be wondering what options are available to secure your interest and improve your chances of recovering the debt. One potential avenue in Queensland is lodging a caveat over the debtor’s property—provided you have a valid caveatable interest.

What Is a Caveat?

A caveat is a legal notice lodged with the Queensland Land Titles Office that serves as a warning to anyone dealing with a particular piece of land. It effectively prevents the owner from selling, transferring, or mortgaging the property until the caveat is removed. However, a caveat can only be lodged if you have a legitimate legal interest in the property.

Can You Lodge a Caveat Over a Debtor’s Property?

In Queensland, you can only lodge a caveat if you have a recognised ‘caveatable interest’ in the property. Simply being owed money does not automatically give you the right to lodge a caveat. Your entitlement to do so must arise from an agreement that expressly grants you an interest in the debtor’s land.

Some common scenarios where a caveat might be justified include:

• A written agreement that explicitly states you have a charge over the debtor’s property as security for payment.

• A mortgage or equitable charge over the debtor’s land.

• A court order granting you an interest in the property.

Risks of Lodging a Caveat Without a Proper Interest

If you lodge a caveat without a valid legal basis, the property owner may apply to have it removed. If the court finds that you did not have a legitimate claim, you may be ordered to compensate the property owner for any losses suffered. Additionally, wrongful lodgement of a caveat can expose you to legal penalties and costs.

How to Protect Your Interests

To improve your chances of securing a valid caveatable interest:

• Ensure that any contract or agreement includes a properly drafted clause granting you an interest in the debtor’s land.

• Seek legal advice before lodging a caveat to confirm its validity.

• Consider alternative debt recovery options, such as obtaining a court judgment or issuing a statutory demand.

Need Legal Assistance?

If you are owed money and want to explore your options, including whether you have grounds to lodge a caveat, RMT Legal can help. Contact us today for expert advice on securing your interests and recovering what you are owed.