Caveat of Property in Malaysia

A private caveat is an entry on the land register that prevents dealings in the property from being registered while it remains in force. It is used to protect a claim to a registrable interest in the land, most commonly by a buyer who has signed a sale and purchase agreement.

What a private caveat does

A private caveat is applied for in the prescribed statutory form, Form 19B, and is entered against the title. Once entered, the registrar will not register a transfer, charge or lease of the affected land while the caveat stands, which protects the caveator's claim in the meantime.

A caveat does not give you ownership and does not prove your claim is good. It holds the position while the claim is sorted out.

Who can enter a private caveat

Only a person claiming a registrable interest in the land, or a claim to such an interest, may enter a private caveat. A buyer under a signed sale and purchase agreement is the clearest example. A person who is merely owed money by the owner, with no interest in the land itself, generally is not.

This is the point that decides most caveat disputes, and it is why advice matters before lodging. A caveat entered without reasonable cause can expose the caveator to a claim for compensation by anyone who suffers loss because of it.

When a caveat is used

• A buyer protecting a signed sale and purchase agreement until the transfer is registered
• A beneficiary protecting an interest in property forming part of an estate
• A spouse protecting a claim to matrimonial property in divorce proceedings
• A party protecting rights under an agreement that gives an interest in the land
• A registered owner protecting the title against fraudulent dealings

Removing a caveat

A private caveat may be withdrawn by the caveator, and a withdrawal is lodged in the prescribed form. Where the caveator will not withdraw, the proprietor or another aggrieved person may apply to have it removed, either through the registrar or by application to the High Court, and the caveator then has to justify the caveat.

A private caveat also does not last indefinitely, and it can lapse. If you are relying on one, the position should be monitored rather than assumed.

Common mistakes

• Lodging a caveat to pressure someone over a debt, with no interest in the land to support it
• Waiting until the property has already been sold to someone else before acting
• Entering a caveat and then doing nothing to pursue the underlying claim
• Assuming a caveat gives priority or ownership rather than a holding position
• Ignoring a notice relating to the caveat, and losing the protection by default

Frequently asked questions

Can I lodge a caveat because someone owes me money?

Generally no. A private caveat requires a claim to a registrable interest in the land itself. A pure money debt, without more, does not support one, and lodging without reasonable cause can expose you to a claim for compensation.

How quickly can a caveat be entered?

Once we have the title particulars, the supporting documents and a statutory declaration, the application can be prepared and lodged promptly. Caveat work is usually urgent, so tell us the deadline when you contact us.

Does a caveat stop the owner from selling?

It does not stop the owner from signing an agreement, but it prevents the transfer from being registered while the caveat stands. In practice that is usually enough to bring the parties to the table.

How do I remove a caveat entered against my property?

You can ask the caveator to withdraw it. If they refuse, an application can be made to have it removed, and the caveator must then show a proper basis for it. We advise on which route is faster for your situation.

Do I need a lawyer to enter a caveat?

The application requires the correct form, a statutory declaration and accurate title particulars, and the consequences of getting the basis wrong are financial. These are prepared by a solicitor.

Related services

• Land Search
• Sale and Purchase Agreement
• Property Transfer & Transaction
• Lease Agreement
• Memorandum of Transfer (MOT)
• Loan Agreement
• Discharge of Charge
• Tenancy Agreement
• Foreigners Buying Property
• Property Lawyer Malaysia

This page is general information about property law procedure in Peninsular Malaysia and is not legal advice for any particular situation. How a matter is handled depends on the title, the state and the facts, and Sabah and Sarawak have their own separate land legislation. Speak to a lawyer about your own circumstances.