Caveats in Uganda
Caveats in Uganda : Generally a caveat means a “warning”. In law, a caveat is basically a notice meaning that certain actions shouldn’t be taken without informing the person who has given that notice.
Understanding caveats
The term caveat refers to a notice, warning or word of caution provided to an individual or entity before they take action, in latin the term means “let him beware” and it has a range of usages that are common in law, land and finance. When someone adds a caveat to a contract, land title or legal situation, they effectively add a warning that the other party should be alerted to the possibility of a dangerous and undesirable circumstance if they proceed any further.
There are many forms of caveats and in this article, we focus on caveats on land.
Caveat acts as a warning or formal notice to tell the public that there is an interest on the land or the 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 the property.
Section 139 of The Registration of Titles Act Cap 230 provides
“(1) Any beneficiary or the 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 any instrument affecting that estate or interest until after notice of the intended registration or dealing is given to the caveator. 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.
Land Rights- a person claiming any interest in registered land, for instance a lease or mortgage, family land among others can lodge a caveat with the Registrar of titles. Any caveat lodges will be reflected on the certificate of title on encumbrance’s page.
The caveat forbids the registration of any person as transferee or proprietor by way of a sale, lease, mortgage or any other interest on land.
Reasons for Lodging a Caveat
If you have an interest in land through which registration of another dealing cannot protect, to
protect your legal position, consider lodging a caveat. 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 (expires)
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 states that “any
person lodging any caveat with the registrar, either against bringing land under the Act or
otherwise, without reasonable cause, shall be liable 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.
Challenging or Removing Caveats
A caveat can be challenged or removed in various 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 made 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 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 of the registrar fails to prove that a notice
show cause why the notice 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
- b) Lodges or deposits such a sum in court as the court considers sufficient to indemnify every person against any damages or loss that may be sustained by reason of the non – removal of the caveat.
Section 141 states that No entry to be made in Register Book while caveat continues in force, so as long as any caveat remains in force prohibiting any registration or dealing. The registrar shall not, except in accordance with some provisions 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 of other instrument purporting to transfer or otherwise deal with or affect the estate or 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 lodge a caveat on his own Land?
Yes as a registered proprietor with an interest in your land and it is highly 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 lodgement.
Frequently asked questions above caveat on land;
- Does an owner’s / registered proprietor’s caveat expire?
No it doesn’t expire, unless there is a dispute which has been determined by court against the registered proprietor which affects the land or its ownership. In any case he or she (the owner of the land) would have to be notified before any transaction or entry is made on his or her title.
For inquiries about lodging acaveat on the lands in Uganda contact moorland Consults Limited.
