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What is Caveat?

Restriction or registration of hurdles to protect the interests of certain parties on a property. 

8 Frequently Asked Questions about Caveat. 

What exactly is this? 

  • The caveat is to prevent any business from taking place on the property. 
  • When the caveat was registered on a property, the registered owner no longer has the power to make any transactions on the land until the expiry of the caveat.  

What type of business cannot be done on the land with caveat? 

  • For any land like selling, mortgaging, leasing or managing the transfer of land until the caveat is removed or expires. 

Who needs to register the caveat? 

  • Landlords who want to protect the land from fraudulent and suspicious transactions.  

How many types of caveat? 

  • Caveat is divided into four categories; 
  • Caveat Registrar – this type of caveat is registered by the Registrar on Land Titles Documents. 
  • Private Caveat – a caveat that can be entered by individuals or private entities that have rights on the land. 
  • Caveat Holder (Lien) - a caveat entered by an individual or an entity which holds the documents of title as a collateral for specific purposes such as the granting of loans (eg bank). 
  • Caveat Trust – the only caveat entered by the registrar of any land or interest belonging to an individual or entity as a trustee. 

Can a caveat be canceled? 

  • Can! There are several ways the caveat will be a void like the owner was withdrawing its own caveat, court orders and the caveat has lapsed. 

What is the duration of a caveat? 

  • Caveat Registrar – determined by the registrar of ownership 
  • Private caveat – 6 years. 
  • Caveat Holder (Lien) - withdrawn by the lien holder, canceled by the registrar when the debt has been paid in full or if the land is sold by order sales.  

What is the fee to include a caveat on the land? 

  • Price depends on the official land area. You can refer to their official website.  

How to make a caveat? 

  • You need to go to the land office for caveat matters. 
  • Please review the status of the land you want to buy to avoid if the land is bound by any caveats.

 

Please note, the material available is general information only, and is subject to change without notice. The information held within this website should not be relied on as a substitute for legal, financial, real estate or other expert advice. Elelong Services disclaims all liability, responsibility and negligence for direct and indirect loss or damage suffered by any person arising from the use of information presented on this website or material that arises from it.

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