Private Caveats in Property Disputes: How Lawyers Use Them to Protect Buyers

If You’re a Property Buyer Worried About Losing Your Land

If you’ve signed a Sale and Purchase Agreement (SPA), paid a deposit, or even moved into your new home—only to discover that the seller may have sold the property to someone else—you’re not alone. This distressing situation can feel like the rug has been pulled out from under you.

You may be wondering: “Can I still claim the property? Will I lose my money? What should I do right now?” These concerns are valid and urgent. Fortunately, Malaysian law allows you to act fast and protect your legal rights before it’s too late.

When Sellers Try to Sell the Same Property Twice

Double sale cases happen more often than you’d think, especially when property titles are unregistered or the sale was done informally. Maybe you’re the first buyer, but the seller secretly signed another SPA with someone else, often at a higher price. Or perhaps you’re the second buyer who bought in good faith, unaware of a prior deal.

Suddenly, two people are holding valid documents claiming the same property. The seller disappears or denies wrongdoing, leaving you facing a legal nightmare. It’s confusing, financially draining, and emotionally exhausting.

What Malaysian Law Says About Private Caveats

The National Land Code 1965 (NLC) is critical in this situation. This law governs land dealings in Peninsular Malaysia and operates on the principle that whoever registers ownership first usually has the stronger claim.

But what if your registration hasn’t gone through yet?

That’s where the private caveat comes in—a legal tool your lawyer can use to help protect your interest.

• A private caveat temporarily blocks any further dealings on the land
  • This means the Land Office won’t allow new transactions—like a second sale or title registration—until the caveat is lifted or expires.
• It acts as a warning flag
  • The caveat alerts others that someone (you) has a claim or interest in the land, even if it’s not formally registered.
• Caveats are often used in urgent, disputed property transactions.
  • Especially in double sale cases, they help “freeze” the land status until legal proceedings can determine ownership.

It’s important to note that caveats don’t automatically resolve disputes—they buy you time to assert your legal rights and prevent irreversible harm.

How a Lawyer Can Help Safeguard Your Interest

A property lawyer’s role in these situations is more than just paperwork. If you’re caught in a property dispute, your lawyer can take fast, protective steps to shield your interests:

• Lodge a private caveat at the Land Office immediately
• Review both SPAs to determine who has the stronger legal position
• Investigate whether the second buyer knew about your earlier transaction
• File for an injunction to stop the transfer of the land
• Send legal notices to the seller and the second buyer
• Begin legal proceedings for specific performance or breach of contract
• Help recover your money if ownership cannot be secured

You don’t have to handle this chaos alone. A good lawyer helps stabilise the situation, assert your rights, and work toward a resolution through court or negotiation.

What You Can Do Right Now

If you’re facing a possible double sale or fear that your property rights may be undermined, here’s what you should do right away:

1. Lodge a Private Caveat

• This is your first line of defence. It prevents the seller from transferring the property to anyone else until your claim is addressed.

2. Collect All Documents

• Secure your SPA, receipts, emails, WhatsApp messages, and agent correspondence. These help prove your timeline and legal interest.

3. Check the Land Title

• Ask your lawyer to verify the current registered owner at the Land Office. You need to know if a second registration has already occurred.

4. Act Quickly

• Time is not on your side. The longer you wait, the more difficult it becomes to reverse a transfer or get your money back.

5. Explore Legal Remedies

• If you’re the first buyer, you may pursue:
  • Specific performance – forcing the seller to complete the sale
  • Injunction – stopping the second transfer
  • Damages – recovering financial loss

6. Report Suspicious Behaviour

• If you suspect fraud, false representation, or duplicated SPAs, report the case to the police and the Malaysian Anti-Corruption Commission (MACC).

Conclusion: Secure Your Rights Before It’s Too Late

Being caught in a property dispute can feel like everything is at risk—your savings, home, and future. But you can regain control of the situation with the right legal tools, like a private caveat, and prompt action.

Don’t wait for the other party to make the next move. If you suspect a double sale or irregular transfer, consult a property lawyer immediately. The sooner you act, the stronger your position will be.

Need legal advice on filing a private caveat or defending your property rights? Get in touch today.

FAQ

1. What is a private caveat, and how does it protect my rights as a buyer?

A private caveat is a legal notice you can file with the Land Office to prevent further dealings with a property—such as transfer or registration—until your claim is resolved. It is an official warning that you have a legal interest in the land.

2. I’ve signed the Sale and Purchase Agreement (SPA), but the title isn’t registered yet. Am I still protected?

Yes, you still have legal rights. Even if the property title hasn’t been transferred to your name, a private caveat can help freeze the property to stop any further sale while you assert your claim.

3. What happens if someone else registers the land before I do?

Under the National Land Code 1965, the registered owner typically holds the stronger legal title, especially if they acted in good faith and had no knowledge of your prior transaction. However, if you can prove fraud or the second buyer knew about your deal, you may still challenge their registration in court.

4. Can I lodge a caveat or need a lawyer?

While technically you can lodge a caveat yourself, it’s strongly advised to do it through a lawyer. They’ll ensure the caveat is properly filed, worded correctly, and supported by the proper documentation to avoid rejection or early removal.

5. How long does a private caveat last once filed?

In Malaysia, a private caveat usually lasts six months from the date it is lodged. You can apply to extend it, but the court must approve the extension. Your lawyer can guide you through this process.

6. What should I do immediately after discovering the property may have been sold to someone else?

Act quickly by:

• Lodging a private caveat
• Gathering all related documents (SPA, receipts, correspondence)
• Checking the land title status at the Land Office
• Consulting a property lawyer to explore injunctions or court remedies

7. Can I stop the second buyer from taking possession of the property?

Yes, you may apply for an injunction to stop the transfer or occupation by the second buyer temporarily. A lawyer can file this urgently if your ownership claim is at risk.

8. What legal actions can I take if I’m the first buyer in a double sale?

You may:

• File for specific performance (to force the seller to honour your SPA)
• Seek damages for breach of contract
• Apply for an injunction or court declaration to protect your interest

9. Is the seller breaking the law by selling the exact property to two buyers?

This could amount to fraud or misrepresentation, especially if done knowingly. If criminal conduct is suspected, you can report the matter to the police and the Malaysian Anti-Corruption Commission (MACC).

10. What happens if I delay taking action?

Delaying action can severely weaken your legal position. The property might be registered in another person’s name, construction may continue, or your money could be harder to recover. Prompt action—especially filing a caveat—can differentiate between protecting your rights and losing your claim.