Is a caveat needed?
Practitioners need to be confident that a caveat is justifiable and take care not to risk taking on a liability for lodging a caveat without reasonable cause (ss. 118 and 119 Transfer of Land Act 1958).
Is there an immediate need to lodge a caveat?
Explain the advantages and disadvantages to your client and let them decide. If in your judgment the lodgment is not legally justifiable, and your client insists, you should direct them to lodge the caveat themselves, after fully explaining the risks.