T R U S T C AV E ATL A N D L A W I I

I N T R O D U C T I O N

• Caveat entered due to Trust Property

• Name must be recognised which it must be registered by Trustee

N AT U R E & E F F E C T O F T C

• S. 332 (1) -

• May be entered by the Registrar upon any land/interest which has expressly held by any person/bodies as trustees

• (2) - Effect must be precisely stated in any terms, the registration, endorsement/entry/ on the followings;

• (a) instrument of dealings/class/description of instrument of dealing, directly affects the property;

• (b) claim to the benefit of tenancy exempt from registration;

• (c) lien holder’s caveat;

• TC will not prevent the entry of PC

• Cannot do any security over the property if there’s TC.

N AT U R E & E F F E C T O F T C

• Application be made in Form 19E.

• Must be statutory form, correctly attested, disclose interest within the terms in s.333(a) & is accompanied with fees - then R will have no discretion in setting aside the application. ( R must enter into caveat)

• R has no power to refuse the entry if all requirements are fulfilled.

• Tokyo’s case - Court allowed removal of caveat because the claimant unable to show the registered TC since there is trusts in the document.

• S.333(4) - The entry shall be effected with an endorsement, under the hand seal of R with the word ‘ Caveat (Trust)’, together w statement;

• Whether the caveat entered in respect of land itself / particular interest only;

• The precise effect;

• Time on being effective.

D U R AT I O N S 3 3 3

• (5)A TC be continue in force till it is cancelled by the Registrar on application by trustee & persons beneficially entitled under the trust.

• (6) Registrar shall endorse against the cancelleh caveat a note of the date of cancellation.

• (7) Endorsement shall be signed & sealed.

• TC can be only entered on Trust Property.

• ‘Trust’ in s.334, is usually an express trust rather than constructive T.

• It occurs where the owner property transfers the legal ownership to a trustee & equitable title to a beneficiary.

E X P R E S S T R U S T

• Yeong Ah Chee v Lee Chong Hai -there are 3 essentials necessary to create valid trust ;

• Certainty of Intention (Must have implications of being the trustee

• Certainty of Subject Matter

• Certainty of Object

• Equitable relief will not be granted to a volunteer beneficiary unless it had been completely constituted.

• An incomplete constituted trust is the in which the TP has not been finally & completely vested in the trustee.

• Land given must convey & registered according to the NLC.

• Milroy v Lord - Trustee is bound by equity to hold & deal with the property for the benefit of the beneficiary to whom the property is transferred. It would be usual to have a formal doc creating trust. This doc can be deposited w R for safe keeping - s 344(3)

C R E AT I O N O F T C - S 3 3 3

• R may enter into caveat upon application of;

• The trustees of any land/inetrest;

• person/body by whom any land /interest is first transferred to Trustees;

• Person/body by whom any interest is created in favour of trustees.

E F F E C T O F T C

• TC prohibits;

• Registration cannot be made prior to the time of which the caveat takes effect; or

• The endorsement/ entry of any claim; or

• LHC caveat where the application for endorsement was received prior to that time.

• R shall reject any application made if the entry/claim/LHC is prohibited by any trust.

W H O C A N E N T E R T C ?

• S 333 (1) - Registrar may enter into TC upon application of;

• the trustee for the time being of any land;

• person/body by whom land is transferred to T;

• person/body by whom interest is created in favour of Trustees.

• R shall not such application the time it received, enter into caveat.