✨𝗡𝗲𝘄 𝗬𝗲𝗮𝗿, 𝗡𝗲𝘄 𝗦𝗲𝗿𝗶𝗲𝘀 𝗼𝗳 𝗔𝗿𝘁𝗶𝗰𝗹𝗲𝘀!
📌𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗙𝗿𝗶𝗱𝗮𝘆: 𝙃𝙤𝙬 𝙩𝙤 𝙎𝙖𝙫𝙚 𝙖 𝙋𝙧𝙤𝙥𝙚𝙧𝙩𝙮 𝙛𝙧𝙤𝙢 𝙒𝙧𝙤𝙣𝙜𝙛𝙪𝙡 𝘾𝙖𝙫𝙚𝙖𝙩𝙨?
A caveat may safeguard rights, but a wrongful caveat can freeze all dealings. Drawing from 𝗗𝗮𝘁𝗼’ 𝗚𝗲𝗼𝗿𝗴𝗲 𝗠𝗶𝗿𝗮𝗻𝗱𝗮’𝘀 𝗯𝗼𝗼𝗸, 𝙋𝙍𝙊𝙋𝙀𝙍𝙏𝙔 𝙇𝘼𝙒 (𝗦𝘄𝗲𝗲𝘁 & 𝗠𝗮𝘅𝘄𝗲𝗹𝗹, 𝟮𝟬𝟮𝟱), this piece explains how to remove wrongful caveats to restore property rights and claim damages.
😰You’re Not Alone
- A caveat has been lodged against a property without valid reason. Now you can’t sell, refinance, or even transfer the land. The buyer is walking away. All plans are on hold. The property is frozen.
🛡️What is a Caveat?
- A legal notice lodged on a property title to freeze all dealings—preventing sales, transfers, or mortgages until removed.
❌Can We Remove the Caveat?
- Under Section 327 of the National Land Code, you can apply to court to remove a wrongful caveat. As the aggrieved party, you have the legal right to fight back.
🧑⚖️Court Order to Remove Wrongful Caveat
- As an aggrieved party, you have the legal right to apply to court for immediate removal of any wrongful caveat blocking the property dealings.
1. Confirm You’re an “Aggrieved Party”
You qualify as “aggrieved” if the wrongful caveat adversely affects your legal rights or interests.
- No need for Registered Title
Examples of aggrieved party:
✔️You’re the prior purchaser & is unable to register transfer
✔️You’re the registered proprietor & can’t sell or refinance
✔️You’re a chargee/lender whose interest is affected
✔️You’re a buyer who paid full/partial purchase price but unable to register
✔️You’re a family member with interest
✔️You have a buyer waiting but the caveat is blocking the sale
✔️The caveat is causing you financial loss / preventing dealings
✔️You have actual interest in land
Examples of Non-aggrieved party:
❌Shareholders/Directors with Beneficial Interest in Company Shares
❌Person Claiming Profits/Monetary Interest Only
❌Family members without interest
❌No proprietary interest / actual interest in land
2. File an Application
We prepare and file your application under Section 327 of the National Land Code.
- Can be made at any time—no waiting period required
- Court can hear application ex parte if urgent
- Present evidence that the caveat is wrongful/without reasonable cause
- Demonstrate actual loss or damage you’re suffering
3. Court Evaluates Using 3-Stage Test
The court applies the landmark Luggage Distributors test to decide:
- Are the grounds insufficient? Does the caveator actually have a valid caveatable interest?
- Is there a serious question for trial? Or is the claim clearly baseless?
- Balance of convenience: Does keeping the caveat cause you more harm than removing it causes them?
Non-Caveatable Interest = Wrongful Caveat
- Incomplete/Unascertainable Interests
- Residuary Beneficiary of Incomplete Estate
- Delays & Inaction
- State Authority Permission Not Obtained
- Prospective Purchaser without State Permission
- Prospective Second Chargee without Consent
- Personal Claims (In Personam—Not Land Claims (In Rem)
- Judgement Creditor (Debt Recovery)
- Personal Claim Enforceable Only Against Proprietor
- Unpaid Purchase Price Balance
- Company Shareholdings (Not Property Interests)
- Shareholder/Director/Managing Director
- Beneficial Interest in Company Shares (Not Property)
- Profit-Sharing Only (No Land Share)
- Joint Venture for Profit-Share Only
- Claims to Profits (Monetary Interest)
- Negotiations & Preliminary Agreements
- Ongoing Negotiations (No Concluded Contract)
- Part Payment During Negotiations
- Agreement “Subject to Contract”/to Make an Agreement
- Options Not Yet Exercised
- Contractual Provisions to Create Caveats
- Specific Contractual Arrangements
- Lienholder’s Caveat Specific Grounds
- Without Actual Possession of Title
- Deposit without Intention to Create Lien
- Fraud/Misrepresentation
4. Court Orders Removal
Upon success, the court makes an order for caveat removal.
✔️Court order is served on the Land Registry
✔️Registrar cancels the caveat entry from your title
✔️Registrar notes the reason and date of cancellation
✔️Your property is immediately unfrozen—you can sell or refinance!
💼Claim Damages for Wrongful Caveat
Upon removal, the Court may award compensation.
That wrongful caveat didn’t just block your property—it cost you money. Lost sale. Missed opportunities. Loan interest piling up.
🛡️Your Legal Right to Compensation
Under the National Land Code, anyone who wrongfully or without reasonable cause lodges a caveat is liable to pay compensation for any damage or loss you suffer.
📜 Section 329(1) NLC 2020: “Any person who, wrongfully or without reasonable cause, secures the entry of, or fails to withdraw, any private caveat shall be liable to pay compensation to any person who thereby suffers any damage or loss.”
💰What Losses Can You Claim?
- Lost Sales
- Interest & Holding Costs
- Business & Opportunity Losses
- Development Delays
📋What You Need to Prove
To succeed in your damages claim:
- Wrongful or without reasonable cause: The caveat had no valid legal basis
- Actual loss or damage: You suffered real, quantifiable financial losses (not just inconvenience)
- Causation: Your losses were directly caused by the wrongful caveat blocking your property dealings
- Evidence: Documentation of losses—sale agreements, loan statements, valuation reports, receipts, lost opportunity evidence
For further information, please contact us at Miranda & Samuel:
- Dato’ George Miranda (george@mirandasamuel.com)
- Joy Sam Jia Qian (joy@mirandasamuel.com)
- Alisyah Maisarah (alisyah@mirandasamuel.com)
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– By George Miranda, Joy Sam Jia Qian, Alisyah Maisarah –
This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.
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