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Why you may need to put a caveat over your land
A plot of land. Whoever deals with caveated land does it at his or her own risk unless you seek consent from the caveator. Photo by Abubaker Lubowa
What you need to know:
Cases of fraudulent sale of private property have left real estate investors troubled. That is why some property owners are now taking cautionary measures to warn the public, through their lawyers, that their land or homes are not for sale as Beatrice Nakibuuka writes.
WHO CAN LODGE A CAVEAT?
Andrew Tusigwire, a High Court commissioner working with Bashasha & Co Advocates, says a caveat can be lodged by any person with an equitable interest in the land.
It can be done by a land seller who has received an installment for the purchase of the land but is no longer the registered owner, a purchaser who has paid part of the money for buying the land but is not the registered owner, a person with a right of access to the land, for instance, a son, daughter or widow of the deceased immediately after death or by a tenant on leased land. In some cases, it may be done by a lender under an equitable mortgage or a person who has a benefit of a court order concerning the land.
HOW TO PUT A CAVEAT ON PROPERTY
Obbo warns that the caveator must provide details for his claims with the accurate description of the piece of land to be caveated with sketches attached.
A copy of evidence to support your claim will be requested by the lawyer who will interview you to establish your position (interest) on the land.
“It takes one to have original documents of the title that have been witnessed by the lands registrar, a statutory declaration by the commissioner of oaths (affidavit) to back your claim for the title, a dated caveat application, passport photos and general receipts of payment,” says Obbo.
These documents are presented to the Registrar of titles at the headquarters on Parliamentary Avenue, at Kampala Capital City Authority (KCCA) offices as well as other regional offices in Wakiso, Mbarara, Jinja, Mukono and Masaka depending on where the piece of land you want to caveat is located.
Acknowledgement of a lodged caveat, according to Obbo, takes 10 working days.
“Although in rare cases, a caveat may be rejected, especially if the caveator is an impersonator or if he has no particular reason for lodging the caveat, says Tusingwire.
“If a person lodges the caveat wrongly, the caveatee can claim for the pecuniary losses incurred and the caveator must compensate him unless they agree to settle the matter outside court,” he says.
COSTS AND IMPLICATIONS
You will pay Shs10,000 for stamp duty, registration fees of Shs15,000 and if the caveat affects more than one title, you will have to pay Shs5,000 for every extra title.
Registered proprietors who mortgaged property should review their mortgage terms before lodging a caveat as the terms and conditions of the mortgage may prevent the process of lodging any caveat without the consent of the mortgagee.
Implications
It is very important to get legal advice while dealing with a caveat or understanding the implications of lodging one. Whoever deals with caveated land does it at his or her own risk unless you seek consent from the caveator.
“When a person lodges a caveat on a given piece of land, other people are assumed to deal with it at their own risk and will stop the registration of any documents that would need to be signed by the caveator,”says Tusingwire.
One should also know that one can apply for removal or claim for compensation where a person has improperly lodged a caveat and caused loss.
“A caveat prevents registration of any further dealings with the land that affects the caveated interest, unless if the caveator consents or the caveat lapses, is cancelled, rejected by the titles registrar or is withdrawn by the caveator.
If a caveator lodges a caveat, it is very hard to sell the land to another person,” adds Tusingwire.
The proprietor has the option of applying to the Supreme Court for removal of the caveat if it was placed without a reasonable cause.
CAN A CAVEAT BE WITHDRAWN?
A caveat may be removed by a court order; a caveatee may request the caveator to remove it or the caveator may remove it by himself because the interest claimed under the caveat was satisfied.
“A caveat lodged by a beneficiary of the estate of the deceased person does not lapse. It cannot be terminated by anyone except the caveator or by court order. However, the caveat can be removed by the caveator any time he or she feels like, especially when they feel satisfied by the lodgement. If someone lodges a caveat, it usually lapses within 60 days or may agree with the caveatee to cancel the caveat,” says Tusingwire.
If the caveator is not satisfied and the caveat is about to expire, he or she can prevent lapsing by lodging an order of the Supreme Court to extend the caveat date expiry. This will require you to be summoned before court.
