What is Caveat?
Well okay, according from the Cambridge dictionary, ‘caveat’ means:
"It is a warning to consider something before taking any more action, or a statement that limits a more general statement."
So, what warning against action are we talking about here? And how does this legal thing apply to property?
Based on the National Land Code (NLC),
“The caveat is a mechanism that prevents the registration of the transaction under the National Land Code (NLC) to protect the interests of certain parties.”
How Does A Caveat Work?
A caveat is lodged using form 19B of the National Land Code – Application For Entry Of A Private Caveat. This form requires you to complete the following details:
Name of relevant registrar or land register
Your name
Grounds of your claim to the land or property
Relevant fee
Known address of proprietor
Date and signature
Witness and signature
Details of land and property caveat to be lodged against
Form 19B received by the Registrar of Titles or Land Administration – note the application and time at which the caveat was received.
It is lodged against the registered document of title for the property. (a private caveat comes into force from the date of registration.
The Registrar then issues a form 19A to the registered land owner, informing them that a caveat has been lodged against the property.
Private Caveat?
A private caveat is designed to ensure that a purchaser of property has protection against the owner selling it to another party.
Private caveats are generally entered as follows:
Preserve the land/property in its existing state until the dispute on the title or interest in the said property between parties is settled in court.
Protect an individual’s claim over the land/property.
Provide a heads up to potential land/property buyers of one’s interest on the land.
Upon lodging a caveat, what happens?
Once a private caveat is successfully lodged, the property in question cannot be dealt with in any way until and unless the caveat is removed.
Thus, it has been said that lodging a caveat on a piece of property or land, may seem like a simple thing to do. Nevertheless, it has many legal implications that we must be mindful of. If you have any inquiries about real estate, feel free to chat with us.
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