Charging Order on Property in the ACT After an ACAT Judgment

When Other Enforcement Tools Miss

Earnings redirection orders work when the debtor has a job. Debt redirection orders work when funds sit in a bank account. But some debtors have their wealth locked in property — a house, a unit, or a block of land — with little liquid cash and no regular employment.

For these cases, the charging order can attach a judgment debt to the debtor's interest in property. CPR Division 2.18.9 applies only in the Supreme Court. For a Magistrates Court judgment, CPR r 2010 provides a certificate route for enforcement in the Supreme Court.

How a Charging Order Works

A charging order is made under CPR r 2401, with the application process set out in r 2402. It can impose a charge over the debtor's equitable interest in property, including ACT real property. A Magistrates Court judgment must first be certified under r 2010 for enforcement in the Supreme Court.

After service of a charging order, CPR r 2404 prevents the debtor from selling, transferring, or otherwise dealing with charged property except in accordance with directions of the court or enforcement creditor. For land, follow the current ACT Land Titles Register (Access Canberra) requirements for registering the order.

This creates passive but persistent pressure. You do not need to chase the debtor or their employer. The charge sits on the title, and the debtor encounters it whenever they try to deal with the property.

Applying for a Charging Order

The prerequisites are the same as any enforcement tool: your ACAT money order must be registered in the ACT Magistrates Court, and you must have served the debtor with the judgment copy and Form 2.49 at least 7 days before applying.

Step 1: Confirm the debtor owns property. Search the ACT Land Titles Register to verify ownership. You need the Certificate of Title reference or the block and section number. The search confirms whether the debtor is the registered proprietor, shows the property description, and reveals any existing mortgages or encumbrances.

Step 2: File the application. For a Magistrates Court judgment, obtain a certificate under CPR r 2010 for enforcement in the Supreme Court. File the charging-order application in the Supreme Court with a draft order and a supporting affidavit under CPR r 2402.

Step 3: Court decision and service. Unless the court orders otherwise, the application is dealt with without a hearing and in the absence of the parties (CPR r 2402). A charging order must be served on the debtor to have effect against them (r 2403).

Step 4: Follow the land-title process. If the charge is over land, follow Access Canberra's current requirements to register it against the Certificate of Title. Unless the court orders otherwise, a proceeding to obtain a remedy against charged property cannot start until a sealed copy is served on the debtor and the person who issued or administers the property and one month has passed (CPR r 2403(4)).

Practical Limitations

A charging order is a long game. It does not put cash in your hand next month. Here are the realities:

Court route and enforcement. A charging order is a Supreme Court process. If you seek a remedy against charged property, CPR r 2406 provides a separate application to enforce the charge. The charging order itself does not force a sale.

Mortgage priority. If the debtor has a mortgage, the bank's registered interest ranks ahead of your charging order. You only recover from the equity above the mortgage. On a property worth $700,000 with a $650,000 mortgage, your charge sits behind $650,000 of prior claims — and the debtor's equity of $50,000 may be further reduced by selling costs.

Joint ownership. If the debtor co-owns the property with someone who is not a judgment debtor (a spouse, for instance), the charge attaches only to the debtor's interest, not the co-owner's share. This complicates any sale or enforcement significantly.

Cost. The 2026–27 Supreme Court fee schedule lists $211 for a natural person or $423 for a corporation to register a Magistrates Court judgment, and $366 or $733 respectively for an enforcement application. Land Titles registration is a separate fee; confirm its current amount with Access Canberra.

When a Charging Order Makes Sense

The charging order is most effective when:

• The debtor owns ACT property with meaningful equity above any mortgages
• Other tools (wages, bank accounts) have already been exhausted or are unavailable
• You are willing to wait for the debtor to sell or refinance — potentially months or years
• The judgment amount is large enough relative to the property value that the debtor has a reason to deal with it rather than ignore it

For strata levy enforcement, a charging order on the unit itself is often the first-choice tool — the unit owner must eventually deal with the encumbrance, and the owners corporation can wait.

The full range of enforcement tools — including when to choose a charging order over redirection orders or seizure — is covered in our ACT ACAT Order Enforcement Guide.

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