CAVEATS ON LAND in Uganda

What is a Caveat?

A Caveat on land can be defined as a formal notice or warning given by a party interested in land to a court, judge or registrar of titles against the performance of certain acts within his power and jurisdiction.

A caveat acts as a warning or formal notice to tell the public that there is an interest on the land or property for a particular reason. The word caveat means ‘beware’ and lodging a caveat on Land warns anyone dealing with the property that someone has a priority interest in that property.

Section 139 of the Registration of Titles Act Cap 230 provides;

“(1) Any beneficiary or other person claiming any estate or interest in land under the operation of this Act or in any lease or mortgage under any unregistered instrument or by devolution in law or otherwise may lodge a caveat with the registrar in the form in the Fifteenth Schedule to this Act or as near to that as circumstances permit, forbidding the registration of any person as transferee or proprietor of and of any instrument affecting that estate or interest until after notice of the intended registration or dealing is given to the caveator, or unless the instrument is expressed to be subject to the claim of the caveator as is required in the caveat, or unless the caveator consents in writing to the registration.”

Reasons for Lodging a Caveat;

If you have an interest in land through which registration of another dealing cannot protect, you may consider lodging a caveat to protect your legal position. This is known as a caveatable interest.

You must ensure that you have a genuine interest at the time you are lodging the caveat.

Caveatable interests include a registered or equitable mortgage, transfer,

a purchaser under an agreement for sale, a tenant (in certain circumstances), a registered proprietor and contractual rights.

When a caveat is lodged at the Land at the Land Registry it effectively prevents the registration of further dealings on the property’s title until the caveat:

• is formally withdrawn by the caveator;

• lapses;

• removed by a court order; or

• the caveator consents to another’s registration that deals with the property’s title.

What Happens if I Incorrectly Lodge a Caveat Without a Caveatable Interest?

Section 142. Compensation for lodging caveat without reasonable cause

“Any person lodging any caveat with the registrar, either against bringing land under this Act or otherwise, without reasonable cause, shall be liable to make to any person who may have sustained damage by the lodging of the caveat such compensation as the High Court deems just and orders”

Only a person who has a caveatable interest can lodge a caveat. Lodging a caveat without reasonable cause is a serious matter. A court may order you to compensate any person who suffers a financial loss as a result of your incorrect caveat.

A caveat can be challenged or removed in a number of ways, including the property owner issuing a lapsing notice or the caveator submitting a release of caveat letter.

What is a lapse of caveat?

The registrar can be moved to lapse a caveat if the registered proprietor has applied for removal of the caveat.

When a registered proprietor applies for the removal of the caveat, the registrar is has a duty to summon the caveator through the address provided on the caveat documents to show cause why the caveat should not be removed.

The caveator can challenge the caveat lapse if the registrar fails to prove that a notice to show cause why the notice was served on him or her.

Except in a case of caveat lodged by or on behalf of;

a) a beneficiary claiming under any will or settlement

b) or by the registrar

every caveat lodged against a proprietor shall be deemed to have lapsed upon the expiry of 60 days after notice given to the caveator that the proprietor has applied for the removal of the caveat.

Unless;

a) before the expiration of the 60 days the caveator or his or her agent appears before the court and gives such undertaking or security or

b) lodges/deposits such a sum in court as the court considers sufficient to indemnify every person against any damage or loss that may be sustained by reason of the non-removal of the caveat

Section 141. No entry to be made in Register Book while caveat continues in force

So long as any caveat remains in force prohibiting any registration or dealing, the registrar shall not, except in accordance with some provision of the caveat, or with the consent in writing of the caveator, enter in the Register Book any change in the proprietorship of or any transfer or other instrument purporting to transfer or otherwise deal with or affect the estate or interest in respect to which that caveat is lodged.

• No transaction can be registered on the Land Title until the caveat is removed

Can a registered proprietor of Land lodge a caveat on his own LAND?

Yes as a registered proprietor you have an interest in your Land and in fact it is advisable to lodge a caveat on your own land as it is one of the ways of protecting land from fraudsters as you would have to be notified before the caveat is removed to allow any transaction to be registered against your land.

Frequently asked question;

Does an owner’s/registered proprietor’s caveat expire?

No it doesn’t since he is both the owner and caveator.

Unless there is a dispute which has been determined by court against the registered proprietor which affects the Land or his ownership.

In any case she or he would have to be notified before any transaction or entry is made on his or her title.

Compiled by; nassuuna@nassuunaadvocates.co.ug

corp.consults@yahoo.com