This chapter is listed under Land Law II. Containing: 1. Introduction 2. Creation & effect of LHC 3. Procedures to Enter LHC 4. Function of Registrar 5. Effect of LHC 6. Failure in caveating the land 7. Cancellation of LHC

1. LIEN HOLDER’S CAVEAT
LAND LAW II

2. Introduction
s 281 NLC
‘Lien’ - ‘Gadai’ (Not operate such ways)
May deposit the documents to someone else
(bank/creditor) for the loan . He then will take
the IDT/documents involved.
Not a registrable dealings however it is to
protect the interest / title of the Lien holder.
If there’s default a creditor may enter into
LHC.

3. Creation & Effect of LHC
S.330(1) - Anyone who has IDT & any
other relevant documents may apply for
caveat.

4. Procedures
S.330(2) -
Form 19D - Application to Registrar to be
made. Expressing the wish to enter into
LHC.
Must be accompanied with fees prescribed.
Attested with s 221 NLC.
Cannot secure transaction however with
land it can be done so.

5. Function of Registrar
Only administrative / procedural
Does not concern the transaction of there’s fraud/ etc.
Only to register if it is in accordance with the
prescribed law
If there is RC/PC/PO, caveat can be entered with
the consent of the holder of the caveat - 322(5)
Must ensure that the money has been given to the
borrower over a loan transaction, then only after that
LHC can be enter.
Ensure caveator has lien & has the right to caveat -
281(1)

6. What is Lien?
Only create an equitable interest (occur
by way of initial transaction); different
from the registrable interest.
It is a consensual (both parties agreed),
possessory transaction.

7. Procedure to Enter
S. 330(3) -
A. Unless he is prohibited by RC/PC/PO, then he must
enter into caveat. When there’s RC & consent was
given to enter thus must register it.
B. Serve notification Form19A to Proprietor + lease
holder.
S.330(4)(b) - LHC effected by endorsement under hand 7
seal of Registrar together w statement:
1. Whether caveat binds land/ lease
2. Particulars of caveator
3. Time from which it is effective

8. Effect of LHC
S. 330(5) - Continue to be in force unless
and until it is removed/ debt is settled/
court’s order to sell.
Freezes the land from any dealings

9. Failure to Caveat the
Land
Gen Principle : If fail to caveat the land, then it has no
effect to the creditor. Where there will be no effect on
the priority of the Lien Holder. because the equitable
interest has been registered/ so long as he/she can
prove that there is intention over the transaction.
Goh Tuan Laye - the purpose is to give notification to
the world that IDT is under the creditor & LHC has
been entered.
Standard Chartered Bank - Not a negligence in failing
to register the caveat. So long as he holds the IDT
then he has the LHC.

10. How to know the LHC
has been terminated?
The moment purchaser shows to the register
IDT/MOT, then LHC has been terminated.
Cancelled by the Registrar as the debt has
been paid by borrower to the creditor.

11. Cancellation of LHC
S 331 -
S & P Caveated land -
Presenting MOT to the Registrar
Registrar must know that payment has been made
Recoup the unpaid payment
Settlement of debt/ Repayment
Borrower proved to R that he had paid fully.
Upon satisfaction - caveat be removed.
If there’s delay by R/ there’s fraud/ etc - Court will give
compensation to the aggrieved party.
Registrar will access the damages occurred.