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CAVEAT

"Caveat" means a registered caveat in the interpretation of Section 5 of 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.

 TYPES OF CAVEAT

1.     REGISTRAR’S CAVEAT

          1.1    Registrar's caveat is entered by the Registrar. The registrar caveat is entered due to one the following reasons:

                   1.1.1      To prevent fraud in dealiings, misrepresentation and misuse of the form.

                   1.1.2      To protect the interests of:

                                 1.1.2.1  The Federal Government and the State Government in terms of debt claims, land revenue arrears and loan repayments for                                                        children, a  person with mental sickness or for those who was not in the country during that time.

                                 1.1.2.2   To guarantee the repayment of loans to the federal government and the State.

                                 1.1.2.3   To correct errors that occur in the document of title or other instruments related to the land and the interest of Section 320 (1).

         1.2     The duration of enforcement of caveat registrar shall be continously and forever until it is canceled by the registrar on its own motion or request                         from the owner of the land or Court Order (Section 321 (3) NLC).

     2PRIVATE CAVEAT

         2.1   Private caveat may be entered by the Registrar for application of the following:

                2.1.1      Any person or entity claiming rights to land owned or registered interests.

                2.1.2      Any person or entity entitled to the benefits under any trust affecting the land or interests.

                2.1.3      Guardian or person representing any of the teenagers who claim to be entitled to benefits under any trust.

        2.2    Private caveat is temporary until it was canceled due to expiration after 6 years or through an application for removal of private caveat or by Court                     Order.

        2.3    Removal of Private Caveat (Sek. 326 NLC)

               2.3.1      Landowner or third parties who are interested and have registered may request for removal of private caveat through forms 19H.

               2.3.2      The 19C Notice will be given to the Caveator.

               2.3.3      Within 2 months from the date the notice is received, caveator must obtain Court Order to extend the private caveat.

               2.3.4      Gazetting shall be made if notice could not be served accordingly (Section 432 NLC).

               2.3.5     Caveat will be canceled if there is no Court Order extending the caveat submitted within two months from the date the notice is received or the                            date of gazetting notice.

    3.  LIEN HOLDER’S CAVEAT

        3.1   Lien holder's caveat will guarantee the interests of the borrowers on their rights. Application should be accompanied by a document of title or duplicate                copy of  lease.

        3.2   Caveat lien holder may be cancelled by the Registrar if withdrawn by caveator or if the Registrar is satisfied that the amount of money due under the                  lien has  been paid completely or through a Court Order.

   4. TRUSTEE’S CAVEAT

       4.1    Trust caveat may be entered by the Registrar on the land or interests which have been stated as being held by any person as a trustee upon                                request:

                4.1.1      The Trustees at that time and regarding on any lands or interest; or

                4.1.2      A person or Body of whom any land or interest is initially transferred to the holders of the Trust; or

                4.1.3      A person or Body of whom any interest is created in favor of the holders of the Trust.

      4.2      Caveat trust will remain in effect until revoked by the Registrar on the application of the trustee and all persons who are entitled to benefits under the 
                 trust.

PROHIBITION ORDER

The prohibition order is an order made by any court to prohibit a debtor's liability (Judgment Debtor) from doing any business on the land or interest in land owned by the holding (Section 334).

The prohibition order will take effect for 6 months from the date of issue by the Court.The duration of this order may be extended by the Court and an application must be submitted before the expiry date.

 DOCUMENTS TO BE SUBMITTED DURING DEALINGS

1.     PERSONAL CAVEAT
i) Individual/Finance Company

·         A duly completed Form 19B

·         Statutory Declaration

·         Relevant documents such as sales / purchases (if necessary)

·         Photocopies of Ground Plan (for private caveat partially of the land)

          ii) Companies/Organization

·         A duly completed Form 19B

·         Statutory Declaration

·         Form 49/Establishment Act/ By-Laws passed by the Lawyer

·         Document related with sales / purchases (if any)

·         Power of Attorney/Reference Number of the letter of the Power Attorney’s Letter (if any)

2.     LIEN HOLDER’S CAVEAT

·         Form 19D

·         Issuance of Document Title

3.     TRUSTEE’S CAVEAT

·         Form 19E

·         Letter of Trustee which has been files at PTG

4.     REGISTRAR’S CAVEAT

·         Letter from Statutory Body/Government Agencies (not involved payment)

5.     PROHIBITION ORDER

·         Court Order which has been sealed by the Registrar of Court

6.     WITHDRAWAL OF PERSONAL CAVEAT

·         Form 19G

7.     REMOVAL OF PERSONAL CAVEAT    

·         Form 19H

·         Form 49/Establishment Act/By-Laws passed by the Lawyer

·         Letter of Power of Attorney/Reference Number of the Power Attorney’s Letter (if any)

8.     WITHDRAWAL OF LIEN HOLDER’S CAVEAT

 

·         Application Form to withdraw the caveat lien holder.

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