Image Courtesy of FreeImages.com Under What Circumstances Can a Certificate of Title or Title Deed Be Cancelled and What Action Steps Should You Take When You Find Yourself in Such a Situation?
Well, even though the law particularly section 54 of the Lands and Deeds Registry Act, Chapter 185 of the Laws of Zambia provides in general terms that a certificate of title is conclusive evidence of property ownership, title deeds obtained by fraud or issued by mistake may be canceled by the court!
This issue was elaborated very well in the recent case of Lazarous Muntente (Suing as Secretary General of Nchanga Motor Sport Club) v Nchanga Sports Club Limited and Others - 2022/HK/439 whose Judgment was delivered on the 18th August, 2023.
The Details of this Case as Summarized by Dickson Jere are as Follows:
Well, even though the law particularly section 54 of the Lands and Deeds Registry Act, Chapter 185 of the Laws of Zambia provides in general terms that a certificate of title is conclusive evidence of property ownership, title deeds obtained by fraud or issued by mistake may be canceled by the court!
This issue was elaborated very well in the recent case of Lazarous Muntente (Suing as Secretary General of Nchanga Motor Sport Club) v Nchanga Sports Club Limited and Others - 2022/HK/439 whose Judgment was delivered on the 18th August, 2023.
The Details of this Case as Summarized by Dickson Jere are as Follows:
"Many people - especially Copperbelt dwellers - know of the Nchanga Motor Sport Club. It has land that is used for racing activities since 1980s and the location is known as the “Lawrence Allen Circuit”.
Initially, the land belonged to ZCCM, which later surrendered it to Nchanga City Council who allowed the club to continue using the circuit. The club members later agreed to apply for the ownership of the land through the Council and Ministry of Lands.
However, it appeared two groups emerged claiming to be the legitimate executive of the motor club.
One group proceeded and incorporated a company called Nchanga Sports Club Limited and used the same to apply for the same land. The Ministry of Lands gave it the land on the understanding that it was for the benefit of the club.
This prompted court action by the other group that argued before the Kitwe High Court that the title deeds were given to the private company fraudulently. They insisted that land should have been given in trust of the club and not to a private company formed without the knowledge of other members.
The Judge heard the case and determined thus;
“In the case at hand, I find that the 1st and 2nd Defendants suppressed a fact relating to the true ownership of the land which led to the issuance of a Certificate of Title in the names of the 1st Defendant (private company) contrary to the recommendation on record,” the Judge observed.
He refused to accept the argument that the private company was formed because the club could not own property in its own name but through a company. He added that members could own the land in trust of the club.
“It therefore leads me to the conclusion that this transaction was done in an effort to deprive the club of its property,” the Judge said.
The Court said the members have proved their allegations of fraud and mistake in which the certificate of title was issued.
“I accordingly order the Registrar of Lands and Deeds to cancel the said Certificate of Title,” Judge John Mbuzi ordered.
Case citation - Lazarous Muntente (suing as Secretary General of Nchanga Motor Sport Club) v Nchanga Sports Club Limited and Others - 2022/HK/439 and Judgment delivered on the 18th August, 2023.
This case underscores the principle that title deeds issued by fraud or mistake can be canceled by court even though the law provides that certificate of title is conclusive evidence of ownership" - PER DICKSON JERE.
Initially, the land belonged to ZCCM, which later surrendered it to Nchanga City Council who allowed the club to continue using the circuit. The club members later agreed to apply for the ownership of the land through the Council and Ministry of Lands.
However, it appeared two groups emerged claiming to be the legitimate executive of the motor club.
One group proceeded and incorporated a company called Nchanga Sports Club Limited and used the same to apply for the same land. The Ministry of Lands gave it the land on the understanding that it was for the benefit of the club.
This prompted court action by the other group that argued before the Kitwe High Court that the title deeds were given to the private company fraudulently. They insisted that land should have been given in trust of the club and not to a private company formed without the knowledge of other members.
The Judge heard the case and determined thus;
“In the case at hand, I find that the 1st and 2nd Defendants suppressed a fact relating to the true ownership of the land which led to the issuance of a Certificate of Title in the names of the 1st Defendant (private company) contrary to the recommendation on record,” the Judge observed.
He refused to accept the argument that the private company was formed because the club could not own property in its own name but through a company. He added that members could own the land in trust of the club.
“It therefore leads me to the conclusion that this transaction was done in an effort to deprive the club of its property,” the Judge said.
The Court said the members have proved their allegations of fraud and mistake in which the certificate of title was issued.
“I accordingly order the Registrar of Lands and Deeds to cancel the said Certificate of Title,” Judge John Mbuzi ordered.
Case citation - Lazarous Muntente (suing as Secretary General of Nchanga Motor Sport Club) v Nchanga Sports Club Limited and Others - 2022/HK/439 and Judgment delivered on the 18th August, 2023.
This case underscores the principle that title deeds issued by fraud or mistake can be canceled by court even though the law provides that certificate of title is conclusive evidence of ownership" - PER DICKSON JERE.
THEREFORE, WHAT ACTION STEPS SHOULD YOU TAKE WHEN YOU FIND YOURSELF IN SUCH A SITUATION?
Where a title deed is cancelled by the court, it means that the legal ownership of the property in question has been revoked or invalidated and therefore null and void. This can happen due to distinct reasons, such as for instance: fraud, misrepresentation of material facts as illustrated in the above cited case, errors in the original title deed, or simply via a court order cancelling the title deeds due to these and/or other reasons.
Therefore, if you find yourself in a situation where your title deeds have been cancelled by the court due to one or more of the reasons stated in the preceding paragraph above, there are several action steps you may take and these are as follows:
Therefore, if you find yourself in a situation where your title deeds have been cancelled by the court due to one or more of the reasons stated in the preceding paragraph above, there are several action steps you may take and these are as follows:
1. Seek Legal Advice
The first and most important action step to take is to consult a qualified real estate lawyer who specializes in property law. He or she will be able to guide you through the legal process and provide you with the necessary advice based on your specific situation.
2. Review the Court Order
Obtain a copy of the court order that cancelled your title deed and carefully review its contents. Understand the reasons behind the cancellation and any conditions or requirements mentioned in the order.
3. File an Appeal to a Higher Court
If you believe that the cancellation of your title deed was unjust, incorrect, misguided or simply the lower court misdirecting itself, you may have the option to file an appeal to a superior court. This typically involves submitting a written application to a higher court, explaining why you disagree with the decision of the lower court and providing further supporting evidence if any that is.
4. Rectify Errors
In some cases, a title deed may be cancelled due to errors or discrepancies in its creation or registration. If this is the case, you may be able to rectify these errors by providing additional documentation or evidence to prove your ownership rights.
5. Use Alternative Dispute Resolution
If the cancellation of your title deed is as a result of a dispute with another interested party, such as a co-owner or neighbor as highlighted in the cited case above, it may be prudent and necessary for you to engage in negotiations or mediation to reach a win-win resolution. In some cases, it may be possible to settle the dispute out of court and reinstate your title deed.
6. Title Insurance
If you have title insurance coverage, contact your insurance provider to inform them about the cancellation of your title deed. They will guide you through the claims process and provide assistance in resolving the issue.
7. Follow Formal Legal Procedures
It is important to comply with all the formal legal procedures and requirements during the process of addressing a cancelled title deed. This may involve submitting necessary documents, attending court hearings, or following specific timelines. Failure to adhere to these procedures can have serious consequences for your case.
8. Consider Other Dispute Resolution
Options: In some cases, it may not be possible to reinstate a cancelled title deed. If this is the situation, then you may need to explore other dispute resolution options such as seeking full compensation or restitution which includes any losses suffered and where this fails completely, seeking legal remedies and/or damages against those responsible for the cancellation in the courts of law.
CONCLUSION
It is important to note that the specific action steps you can take when a title deed is cancelled by the court may vary depending on the jurisdiction you live in and the circumstances surrounding the cancellation of the title deeds in question. Therefore, it is crucial to consult a legal professional who can provide proper guidance tailored to your own unique and specific situation.
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