Trust Caveat under Land Law II syllabus. Containing definition, nature and effect of Trust Caveat, Duration under Section 333 of the NLC. Express Trust also is included in this slide. Creation of Trust Caveat under NLC, its' effect & the person eligible in entering into Trust Caveat.

1. T R U S T C AV E AT
L A N D L A W I I

2. 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

3. 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.

4. 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.

5. 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.

6. 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)

7. 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.

8. 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.

9. 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.