The Supreme Court of Victoria has found that a law firm’s caveat over a family home should be removed, subject to an undertaking protecting the firm’s interests. This decision was made after the court determined that the balance of convenience favored allowing the property to be refinanced.

In the case of Green (a pseudonym) v Elvin Lawyers Pty Ltd [2026 VSC 675], the court considered an application under s. 90(3) of the Transfer of Land Act 1958 (Vic) concerning a property in Coburg North. The plaintiff’s former de facto partner had engaged Elvin Lawyers to represent him in family law proceedings and had granted the firm a charge over the property to secure existing and future legal fees.

The firm had lodged a caveat claiming an interest as chargee, but the plaintiff arranged to refinance the property. Elvin Lawyers sought $33,899.77 or equivalent security before withdrawing its caveat. The court accepted that the written charge and evidence of unpaid fees established a prima facie case, but identified doubts about enforceability because the former partner appeared to have granted the charge in breach of the existing injunction. The court did not resolve that issue or determine priority between the competing equitable interests.

The court considered the balance of convenience and placed significant weight on the potential loss of the family home, the relatively small amount secured by the charge, and the circumstances surrounding its creation. It concluded that the balance of convenience favored removing the caveat, provided the plaintiff undertook to comply with any damages order arising from its removal.

The court directed the plaintiff to prepare draft orders incorporating the undertaking and urged the parties to consider their obligations under the Civil Procedure Act 2010 (Vic) to negotiate a resolution before pursuing further litigation.