Lodging a Caveat is not a required precondition to entering agreements with tenants.
Tenants will only have the right to place a caveat over the property if the investors or owners of the property default on their agreements with the tenant.
If such a default occurs, there are strict rules and requirements about how the tenant may exercise their caveat option, which include the need to consult their solicitor to confirm that the default has indeed occurred.
Additionally, if a caveat is lodged, the investor may have it removed if they believe that they have not defaulted on the agreements.
These processes ensure sufficient recourse for both parties in the event of defaults while not impeding the finance or mortgage requirements of the Investors.