Reading a title search: easements, covenants and caveats explained

The title search is a one or two-page document that tells you who owns the property and what other rights or restrictions are registered against it. It is one of the most important parts of a Section 32. It looks technical, dense numbers, references, and legalese, but the content is usually simple once you know what to look for.

For the full document explained end to end, this sits inside our complete guide to the Section 32.

What is a title search?

In Victoria, every parcel of land has a Certificate of Title registered at Land Use Victoria. The title search is a current snapshot of that register.

It shows:

• The current registered owner
• The volume and folio number (the title's unique reference)
• The land description
• Any registered mortgages
• Easements, covenants, caveats, or other notifications on title

The key sections

Registered proprietor

The current owner. Match this against the vendor's name on the contract. If they don't match, the person trying to sell to you may not actually own the property.

Encumbrances, caveats and notices

This is where the important stuff sits. Anything registered against the title appears here, and each one has potential consequences for you.

Easements: someone else's right to use your land

An easement is a right registered in favour of another party to use part of your property. The most common types:

• Drainage easement, usually the local water authority or council. Lets them maintain pipes under your land. Often runs along the back or side of the block.
• Right of way, a neighbour's right to cross your land to reach theirs. Common in older inner suburbs with shared driveways.
• Carriageway easement, similar, but for vehicles
• Sewer easement, Yarra Valley Water, South East Water, or similar
• Easement for utilities, power, gas, telecom

Why it matters

You can't build over an easement without permission (and sometimes not at all). A drainage easement under your backyard may mean no pool, no extension, no granny flat. If you plan to renovate, check what's under the ground before you fall in love with a plan.

Covenants: private restrictions on what you can do

A covenant is a restriction registered by a previous landowner that binds all future owners. They're often used in newer estates to keep the area consistent.

Common covenants:

• Single dwelling only, you can't subdivide or build a second home
• Minimum floor area, must be over a certain size
• Material restrictions, must be brick, must have a tiled roof, no fibro
• Setback rules, distance from boundary
• Fence height limits
• No commercial use

Why it matters

Covenants can dramatically limit what you can do with a block. Buying with plans to subdivide and being blocked by a 1970s single-dwelling covenant is a common, expensive surprise.

Covenants can sometimes be removed via court application, but it's slow, expensive, and not guaranteed.

Caveats: someone has a claim

A caveat is a warning sign on the title. It says "someone has an interest in this property and you should know before dealing with it."

The most common caveats:

• Purchaser's caveat, a buyer in a prior contract has lodged a caveat to protect their interest
• Beneficiary's caveat, under a deceased estate or trust
• Spousal caveat, a separated spouse claiming an interest
• Equitable mortgage, informal lender registering their claim

Why it matters

A caveat doesn't always block a sale, but it must be lodged for removal or addressed before settlement. If a caveat isn't resolved, settlement can be delayed or fall through. Make sure your conveyancer knows about every caveat on the title.

Mortgages

Most properties have a registered mortgage. The vendor pays this out at settlement from your purchase price. This isn't a red flag, but your conveyancer should verify the discharge is being arranged.

Other things you might see

• Section 173 agreement, a binding agreement between the council and a previous owner, often relating to planning conditions (e.g. "this house must remain a single dwelling forever")
• Restrictive covenant in a plan of subdivision, similar to a private covenant but registered as part of an estate plan
• Land tax notification, the State Revenue Office has flagged unpaid land tax
• Owners corporation registration, for properties in a body corporate

The plan of subdivision

If the title references a plan of subdivision, the plan itself is often attached to the Section 32. It shows the property's boundaries, any common property, and the lot number within the larger development.

Check the plan against the property's actual boundaries. The block you walked through and the block on the plan should match.

What to do with all this

When you read a title search:

1. Confirm the owner matches the vendor
2. List every easement and check what it covers, get a copy of the plan if you need to see exactly where they run
3. Read every covenant in full, they're usually attached as a separate document
4. Note any caveats and ask your conveyancer how they'll be resolved before settlement
5. Check the mortgage discharge is being handled

Your conveyancer should walk you through anything unusual. If they don't volunteer to, ask.

Unstated's reports include a plain-English summary of every encumbrance on title, explaining what each item means for what you can actually do with the property.

Sources

• Land Use Victoria: Property and land titles information: the Victorian land registry: the Certificate of Title and the easements, covenants, caveats, and mortgages recorded on it.
• Sale of Land Act 1962 (Vic), section 32: the Vendor's Statement requirement to disclose title particulars and encumbrances before sale.

Sources verified 25 July 2026.