Quick answer
A priority notice is a short-term flag lodged on a property's title, through the electronic lodgement system, that warns the public a specified dealing, such as a mortgage or transfer, is about to be lodged. For about 60 days it blocks most other dealings from being registered ahead of it, so the queue position is held while settlement is arranged. It is not security, and it is not a caveat.
Key points
- A priority notice holds your place on the register for a specific dealing for a limited time.
- In NSW, Queensland and South Australia it lasts 60 days and can be extended once by 30 days, to a 90-day maximum.
- It doesn't stop a caveat being lodged, and it gives the holder no interest in the land.
- It is lodged electronically by a subscriber, usually a lawyer or conveyancer, not by the borrower.
- If settlement slips past the expiry date, the protection is gone and the title is open again.
A second mortgage only ranks as a second mortgage once it’s on the register. Between signing the documents and registration, the title is exposed: another dealing could be lodged first and jump the queue. A priority notice is one of the tools the registry offers to cover that gap. Most borrowers never see one, but you may see it on a title search, or hear your conveyancer mention it, and it helps to know what it does and what it doesn’t.
What does a priority notice actually do?
It’s a notation on the folio or certificate of title that says, in effect, “a dealing is coming, don’t register anything that would cut across it”. It names the dealing or dealings it protects, for example a mortgage, a transfer or a discharge. While it’s current, the registry generally won’t register other dealings that affect the same land unless they fall within a short list of exceptions.
Three things follow from that.
- It holds a place, not an interest. The person who lodges it gets no claim over the property. They’ve only reserved their queue position for the named dealing.
- It’s temporary. It lapses on a fixed date, or earlier when the named dealing is registered or the notice is withdrawn.
- It’s public. Anyone searching the title can see it, which is itself a warning that a transaction is pending.
How is it different from a caveat?
People confuse the two, and the difference matters for a property-secured loan.
| Priority notice | Caveat | |
|---|---|---|
| What it asserts | A named dealing is about to be lodged | An unregistered interest in the land |
| Who it protects | The holder of the pending dealing | The person claiming the interest |
| Duration | Fixed, short (60 days in several states) | Stays until withdrawn, lapsed or removed |
| What it blocks | Most other dealings, with a short exceptions list | Depends on the form; a standard NSW caveat generally doesn’t stop registration |
| Gives security? | No | Can support a claim, which is why caveat loans use them |
The NSW Land Registry’s guidance notes that a caveat can still be recorded while a priority notice is current. Queensland’s rules are similar: caveats are among the instruments a priority notice doesn’t block. So a notice is a way to hold the queue for a registered mortgage. It isn’t an alternative to registering one. If you want the full picture of how ranking works once a mortgage is registered, see our explainer on second mortgage priority.
How long does a priority notice last in each state?
| State | Standard period | Extension | Notes |
|---|---|---|---|
| NSW | 60 days from lodgement | One extension of 30 days, to 90 days in total | Extension must be applied for before the notice expires |
| Queensland | 60 days from lodgement | One extension of 30 days, to 90 days in total | Replaced settlement notices from 1 January 2018; extension request must be lodged within the first 60 days |
| South Australia | 60 calendar days | One extension of 30 days | Lodging is optional |
| Victoria | 60 days when notices began in December 2016 | Land Use Victoria later reported a lengthened period of 90 days under section 91FA | Check the current Land Use Victoria guide before relying on a figure |
| Western Australia | Not confirmed | Not confirmed | Ask your settlement agent |
These are the periods the registries and practitioners describe today. The exact rules sit in each state’s legislation, so treat the table as a planning guide and let your lawyer confirm the current number.
When would a second mortgage involve one?
Most of the time, it won’t. A well-prepared second mortgage is lodged electronically and registered within a short window, so there’s little to protect. Where it comes into play:
- A gap between signing and settlement. If a mortgage is signed but the funds or the first mortgagee’s consent are still being arranged, lodging a notice holds the queue meanwhile.
- A busy title. If the search shows pending dealings, such as a transfer, a discharge or a lease, the lender’s lawyer may want to hold priority for the mortgage.
- A linked transaction. When a second mortgage is registered at the same moment a payout, discharge or refinance happens, the notice can name more than one dealing, so the whole sequence lands in order.
- A delayed settlement. If something goes wrong, such as a requisition, a missing signature or a bank holiday cut-off, the notice stops the title being overtaken while it’s fixed.
None of this changes the lending side. A notice doesn’t replace first mortgagee consent or a priority amount, and it doesn’t make a loan approvable. It simply protects the order of events.
A worked example (illustrative)
A business owner has a home with a first mortgage and is arranging a second mortgage for business purposes. Signing happens on day 1. The first bank’s consent letter arrives on day 12, because a few forms need re-signing. Meanwhile a co-owner’s name on the title is spelt differently from the loan contract, which triggers a registry query.
The lender’s lawyer lodges a priority notice on day 2 naming the mortgage. The query is fixed by day 20. The mortgage registers on day 21, well inside the 60-day window, and the notice ends automatically on registration. Without the notice, anything lodged between day 2 and day 21 could in principle have registered first. With it, the order was held.
If the same job had dragged to day 70, an extension applied for before day 60 would have carried it to day 90.
Why do registries bother with a notice at all?
Before priority notices, the queue could only be protected by settling quickly and hoping nothing else was lodged. Electronic conveyancing changed the mechanics: dealings are prepared in advance, signed digitally and lodged at settlement, so a lender, a buyer and a seller can line up several documents to register together. The notice gives that sequence a short shield. NSW introduced the regime in 2016 and Victoria followed in December 2016. Queensland replaced its older settlement notices with priority notices from 1 January 2018.
For a business owner the lesson is practical. The longer a settlement drifts, the more the protection matters, and the more a delay costs. A second mortgage that’s fully documented before anyone lodges is the one least likely to need the shield.
What should you do as the borrower?
You won’t usually lodge anything yourself. These steps help:
- Order a title search before you apply. It will show any existing notice, caveat or pending dealing. Our guide to ordering a title search covers how.
- Match names exactly. Name differences between the title, loan contract and ID are a common cause of registry queries, and queries are what eat the notice period.
- Ask your conveyancer whether one is being lodged, and what the expiry date is. Diarise it.
- Know the fees. Lodgement and network charges appear on the settlement statement. See what every state charges to register a mortgage.
- Don’t rely on it as protection against a caveat. If a caveat is a risk, the answer is checking the title, not a notice.
If you’re working out how much a second mortgage could unlock before any of this matters, the equity and LVR calculator is a good first step, and you can start an enquiry from there.
Can a priority notice be misused?
It can. A notice blocks other people’s dealings, so registries and courts take a dim view of ones lodged with no real pending dealing. In Queensland, a person harmed by an unreasonable notice, by an unreasonable extension, or by a notice not withdrawn in reasonable time, can seek compensation from the Supreme Court, as Hopgood Ganim’s summary of the Land Title Act explains. The practical point for borrowers: a notice should name a genuine dealing and be withdrawn when the job is done.
Where does your own second mortgage stand?
The paperwork around registration can feel like jargon, but the order of events is simple: sign, lodge, hold the queue, register. If you’d like to find out where you stand, a short enquiry is the quickest way to find out whether your property can support a second mortgage for business funds.
It takes about 60 seconds, and there’s no credit check when you first enquire, so your credit file isn’t touched just for asking. We don’t pass your details around a pile of lenders. One specialist works through your numbers, and a real person calls you to talk through the structure, the ranking on title and the timing. Please fill the form in accurately, with the property value, what’s owed, the amount you need and everyone on the title, so the first structure we discuss is the one that settles.
Frequently asked questions
Is a priority notice the same as a caveat?
No. A caveat claims an unregistered interest in the land, such as an equitable charge. A priority notice claims nothing. It only signals that a named dealing is about to be lodged and holds the queue for it. Under the NSW Land Registry's guidance, a caveat can still be lodged while a priority notice is in place.
Do I need a priority notice for a second mortgage?
Usually not. Most second mortgages are lodged and registered electronically within days, which is faster than the notice period. A priority notice becomes useful when there's a gap between signing and registration, or when the title is busy with other pending dealings. Your lender's lawyer or settlement agent decides.
Who lodges a priority notice and who pays?
A subscriber to the electronic lodgement network lodges it, normally the lender's lawyer or the settlement agent, as part of the conveyancing work. Any fee is a registry or network charge, passed through as a settlement cost. Check the fee line on your settlement statement.
What happens if the priority notice expires before the mortgage is registered?
The hold lapses and other dealings can be registered ahead of yours. In NSW, Queensland and South Australia a single 30-day extension can be applied for before expiry, and after that a new notice may be possible. Settlements that run long are the main reason expiry becomes a risk.
Can a priority notice be lodged without my knowledge?
It would normally appear on a title search as a notation. A notice lodged without reasonable grounds can expose the lodger to a compensation claim. In Queensland, a person harmed by an unreasonable notice can seek compensation from the Supreme Court. If you spot one you don't recognise, ask your conveyancer to check it.
Does Western Australia have priority notices?
We couldn't confirm a WA equivalent in the sources we checked, so don't assume the 60-day rule applies there. Ask your settlement agent or Landgate what protects a pending dealing in your case.
Sources
- NSW Land Registry Services — How long is a priority notice effective for?
- NSW Land Registry Services — Priority notice noted on the Register
- Titles Queensland — Land Title Practice Manual Part 23 (priority notices)
- Land Services SA — Priority notices
- Land Use Victoria — Guide to priority notices and withdrawals of priority notice
- NSW Legislation — Real Property Amendment (Electronic Conveyancing) Act 2015 (priority notices)
- Queensland Legislation — Land Title Regulation 2022
- Hopgood Ganim — Priority notices (Queensland)