© Queensland Building and Construction Commission 2014. ABN 88 568 500 260 Queensland Government
Charge over property
What is a charge over property?
If you are a head contractor and an adjudicated amount (as determined through the adjudication process) owing to you hasn’t been paid in full by the due date, you may be able to request registration of a charge over the property where the work took place (the relevant property).
The charge creates the right for you – if the debt is not paid – to apply to the court to sell the property to recover the debt.
When can a charge over property be used?
As a ‘claimant’ wanting to request registration of a charge over property – you must:
- be a head contractor
- be owed an adjudicated amount which has not been paid in full by the due date
- ensure the person or company who owes you money (the ‘respondent’) or a related entity – is the registered owner of the property where the construction work occurred or related goods and services were supplied
- have lodged the adjudication certificate as a judgment debt in the relevant court.
How charge over property works
You can request a charge over property by lodging ALL the following documents with the Titles Registry and paying the relevant fee: The Titles Registry will duly record your charge against the relevant property. The Titles Registry records your registration for charge over the relevant property. The charge is valid for 24 months and then automatically expires – unless released earlier. If the adjudicated amount is still not paid you can request an extension of the charge by applying to the relevant court. The extension can only be for an additional 24 months, after which time the charge will expire. If the court grants the extension, you must notify the Titles Registry of the extension – using Form 14 – General Request. If after a charge over property has been registered and you’re still not paid, you can apply to the relevant court for an order to have the property sold. Before commencing court proceedings you must advise the registered property owner in writing of your intention to seek an order for the property to be sold. Proceeds from the property sale will be used as follows: As a claimant, you must lodge a request to release a charge over property as soon as possible after any of these events – otherwise you may incur a penalty: Remember the charge over the relevant property also automatically expires 24 months from initial registration (this can be extended by up to 48 months if an extension is approved by a court). To request a charge be released – use Form 14 – Release of Charge. For full details on how to register, extend or release a charge over property, refer to the Titles Registry’s Land Title Practice Manual. If you are the registered owner of the property for which a charge has been registered, you can respond by: If the claimant has not requested a release of the charge over your property, you can request the release if any of the following occurs: To request the charge over property be released you’ll need to lodge the following documents with the Titles Registry: For full details on how to release the charge over property – including the relevant fee – refer to the Titles Registry’s Land Title Practice Manual. If you have paid the adjudicated amount or you are not the respondent for the adjudicated amount (or a related entity for the respondent), you may choose to challenge a charge registered over your property by taking the matter to court and having the charge set aside. Before commencing court proceedings you must advise the claimant in writing of your intention to legally challenge the charge. If you’re successful you can request the Titles Registry remove the charge over the property. For full details on how to do this – including the relevant fee – refer to the Titles Registry’s Land Title Practice Manual. Once the Titles Registry records a charge over property, it’s valid for 24 months and then automatically expires – unless released earlier. If you do not pay the claimant the adjudicated amount within 24 months, they can request an extension of the charge by applying to the relevant court. The extension can only be for up to an additional 24 months, after which time the charge will expire.Charge over property - for claimants
How to register the charge over property
How long does a charge over property last?
Recovering amount owed if still not paid
Request the charge to be released
Charge over property - for registered property owners
When a charge is registered over your property
Request the release of the charge
Apply to have the charge set aside
How long does a charge over property last?