Professional Documents
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Land Notes
Land Notes
Long before the Torrens System was introduced, the concept of ‘one who fells the trees owns
the land’ was practised in Malaya, which was known as the Malay Customary Land Tenure.
Its main characteristics are:
- Nature of ownership
- Ownership was not absolute, but was merely a proprietary right, where the
right of ownership extends only to the right to utilise the soil. Although it was
capable of being inherited, it was nothing more than a right of occupation.
- Method of acquisition
- Through opening up and cultivating virgin jungle land or waste land.
- Obligation to pay tax
- The owner is obliged to pay to the Ruler or to the State one tenth of his
produce.
- Continuous cultivation
- The owner must continuously cultivate the land. Neglecting the land for a
substantial period of time without reasonable cause would cause it to be
forfeited by the Ruler or the State, where the owner would then lose all his
rights to the land. Even if the owner does not neglect the land, but instead
leaves it uncultivated, he will be liable to ejectment.
- Practice of sale of land (Pulang belanja)
- Where the owner wishes to sell his land, the value would reflect the sum total
of his labour and out-of-pocket expenses incurred in cultivating and
developing the land.
- Recognition of the security transaction (Jual janji and Jual putus)
- Jual janji (conditional sale) is a sale transaction whereby a person in need of
money will sell his proprietary rights to the land to a purchaser to whom the
land will be transferred to. The transfer is subject to the condition that the
purchaser will re-transfer the land back to the seller when he repays the sale
amount within the agreed duration.
- In the event that the seller is unable to repay the sale amount within the
agreed duration, the transaction will become jual putus (absolute sale).
These customs were upheld by Sir Benson Maxwell CJ in Sahrip v Mitchell & Anor:
- It is well known by the old Malay law or custom of Malacca, while the sovereign was
the owner of the soil, every man had nevertheless the right to clear and occupy all
forest and wasted land, subject to payment to the sovereign of one tenth of the
produce of the land so taken. The trees he planted, the houses he built, were his
property, which he could sell or mortgage or hand down to his children. If he
abandoned the paddy land or fruit trees for three years, his rights ceased and the
land reverted to the sovereign. If, without deserting the land, he left it uncultivated
longer than usual and necessary, he was liable to ejectment.
The Torrens System of acquiring title by registration was introduced in the Malayan states
with the formulation of the National Land Code 1965. Its main characteristics are:
- All lands are vested in the Ruler, who has the power to alienate land to his subjects
either in perpetuity or for a fixed term of up to 99 years.
- All dealings in land must be in the prescribed form and duly registered with the
relevant land registry in order to confer title or interest on the new proprietor or
interest holder. Failure to do so would render the dealings null and void.
(Hj Abdul Rahman & Anor v Mohamed Hassan)
- Owners of land are conferred indefeasible title upon registration.
- Indefeasibility can be defeated where the transferee is guilty of fraud, forgery,
misrepresentation, mistake, void instrument, or unlawfully acquiring the title.
- The traditional method of acquisition of virgin land or waste land was abolished.
- Different types of dealings were introduced.
- Land transactions entered into between individuals or bodies to convey title
or interest in land to each other.
- E.g: Transfer, lease, tenancy, charge, liens, easement.
- Four types of caveats were introduced.
- Registrar’s caveats, private caveats, lien-holder’s caveats, trust caveats.
Under the Torrens System, the register is everything and it would be wrong to allow an
investigation against the right of a person to appear upon the register when he holds the
certificate of title. (Teh Bee v Maruthamuthu)
The Torrens System in Malaysia applies two principles:
- Mirror principle
- The register reflects completely the current facts about a person’s title.
- Name of the proprietor, particulars of the alienated land, area and
location, survey plan and boundary limits.
- All the necessary information is reflected on both, the Register Document of
Title and Issue Document of Title.
- This helps assist the purchaser, lessee or chargee in obtaining all the relevant
particulars of the land if they decide to obtain proprietorship or any interest in
the land.
- The purchaser knows what he is buying and the person with an interest
in the land knows that it will be protected.
- Curtain principle
- The intending purchaser or interest acquirer need not look behind or beyond
the register. It is sufficient if he examines the Register Document of Title in
order to obtain particulars related to the land.
- Ownership need not be proved by long complicated documents kept by the
owner.
- The objective is to facilitate the alienability of land by freeing the purchaser
from the effort and worry of dealing with equitable owners.
What is land?
Sec. 5(d) defines land to include:
- All things attached to the earth: E.g – buildings
- All things permanently fastened to anything attached to the earth: E.g – windows
The importance in defining land:
- To determine the rights of the purchaser on certain items in a transaction of sale and
purchase of land.
- As between the chargor and chargee: to determine the right of the chargee bank over
the land charged to them as a security.
In order to determine where an item forms part of the land, it is important to identify what
constitutes as a fixture and a chattel.
- Fixtures: Items which are so affixed to the land or a building on the land as to become
part of the land or building.
- Immovable items which pass on with the ownership of the land.
- Chattels: Items which are attached to the land, but is removable and does not form
part of the land.
General rule of law of fixtures as per Blackburn J in Holland v Hodgson:
- An article which is affixed to the land even slightly is to be considered part of the land.
(Quic quid plantatur solo, solo cedit)
- As fixture or chattel has not been defined under the NLC, the English law of fixtures
may be applied as affirmed in Goh Chong Hin & Anor v The Consolidated Malay Rubber
Estates Ltd
- When proved it is a fixture, an item becomes part of the land and the title over it
passes to whoever is regarded as a title-holder over the land.
In determining whether an item is to be regarded as a fixture or chattel, two tests are
applicable as in Holland v Hodgson.
- Degree of annexation test
- Whether the chattel can be easily removed without injury or damage to itself
or the premise.
- The damage can either be physical or conceptual.
- Physical damage: The extent to which damage will be caused must be
measured.
- If an item has been strongly or rightly attached, it is bound to cause
great damage. Thus, it is prima facie a fixture.
- The stronger an item is attached to the land, the more likely it is a
fixture.
- E.g: Built-in kitchen cabinets; machine affixed to the ground with bolts
- If the item is only slightly attached or it is resting on its own weight,
then it is not prima facie a fixture.
- Conceptual damage: Where damage is not apparent or obvious.
- Although an item could be removed easily without any apparent
damage, yet the item would cease to perform the purpose it was made
for. Thus, it is prima facie a fixture.
- E.g: Ceiling fan; windows and doors
- The more damage it is likely to cause upon removal, the more likely that it
forms part of the land.
- Australian Provincial Assurance Co Ltd v Coroneo: The degree of annexation
must be considered through the intention. Where evidence has been adduced
that a chattel has been attached or permanently fastened to the land or
building, it is prima facie a fixture, but where it is proved to have only been
fixed merely for a temporary purpose, then it is not a fixture.
- This test alone is insufficient to conclude whether an item is a fixture or a
chattel.
- Goh Chong Hin & Anor v The Consolidated Malay Rubber Estates Ltd:
Machinery, which was fixed to the foundation of the building and was securely
attached into the soil with bolts, was classified as fixtures forming part of the
land.
- Socfin Co Ltd v Chairman Klang Town Council: Above ground storage tanks
consisting of cylinders that were resting on pre-cast concrete pillars standing
on a reinforced concrete raft foundation for the purpose of storing palm oil
was considered to be structures attached to the land, and was thus, classified
as fixtures.
- Material Trading Pte Ltd v DBS Finance Ltd: Whether an item is considered chattel or
fixture is a mixed question of fact and law that depends on the intention of the
parties. The onus of proof is on the owner of the item to prove that a particular item
is still a chattel even after it is attached to land.
Exceptions to the general rule:
- Although an item is attached to land, it is not a fixture.
- There are several categories of exceptions:
- Tenant’s fixtures
- Items brought in by the tenant to his rented premise belongs to the tenant and
are removable subject to:
- There must be a landlord and tenant relationship
- The fixtures must be removed prior to the expiry date of the tenancy,
failing which they will become the property of the landlord
- Only the tenant’s things can be removed
- There is no substantial damage caused to the property during the
removal of the fixtures
- Ornamental fixtures
- Items with a sentimental value.
- E.g: Antique items or paintings
- Custom
- Where a custom exists in relation to an item that should be considered a
chattel in all circumstances, it can be removed by the owner of the item.
- Kiah v Som: A Malay traditional house built on stilts, which could easily be
dismantled and removed is considered as a chattel.
- The custom must be well accepted and practiced by the community.
- The owner must intend to rebuild the same house in another place.
- Written agreement
- Where there is an express provision regarding the nature of the fixture and
such provision has clearly specified the limitations imposed on the ownership
of the fixture, the item will pass with ownership.
- Sungei Way Leasing v Lian Seng Properties & Ors: The lessor was entitled to
the air conditioner as the Lease Agreement prohibited the transfer of the
equipment to a third party.
- Reynolds v Ashby & Son: Machines supplied by their owner to the lessee of a
factory on hire purchase were affixed to the floor of the factory by bolts and
nuts and could have been removed without causing damage to the building.
The lessee defaulted in payment, and the owner brought an action to recover
the machines or their value from a mortgagee of the premises who had taken
possession. Held: The machines had been so affixed to the land as to pass by
the mortgage to the mortgagee.
- All fixtures whether attached to the land before or after the date of the charge,
will pass to the chargee (bank) as part of the land, unless otherwise provided
for.
- Wiggins Teape (Malaysia) Sdn Bhd v Bahagia Trading Sdn Bhd & Ors:
A property was charged to the bank in which an offset printing machine under
a hire purchase scheme was affixed in that property to the floor by bolts. The
chargor failed in the loan repayment and the bank proceeded to enforcing the
charge. The issue was whether the machine formed part of the property. Held:
The machine is a fixture and thus, passes to the bank even if it were attached
to the land after concluding the charge agreement, unless of course contrary
was provided for in the contract.
Rights and powers of State Authority (Sec. 40 – 49)
State Authority: The highest decision-making body with regard to applications relating to land
under the NLC.
- The Ruler or Governor of the State acting under the advice of the State Executive
Council in respect of its functions under NLC.
State Land: All land within the boundary of the State, which excludes
- Alienated land
- Reserved land
- Mining land alienated under Mining Law
- Reserved forests under the Forestry Act or any other law relating to forests
Sec. 40: Who owns State land?
- State land is vested solely in the State Authority
- All State land not yet alienated belongs to the State Authority
Rights given to a
proprietor, licensee, or
lessee under NLC
Paramount Rights:
Sec. 44(1) entitles a person to:
- A right to enjoy the column of air space above the land
- A right of support by the adjoining land
- A right of access to foreshore, river or public place
Sec. 44(1)(a) Right to enjoy the column of air space above the land:
- It is an exclusive but not absolute right, as it is subject to limitations:
- Other provisions in the NLC and any other written law
- Enjoyment must be reasonable and necessary
- Enjoyment must be lawful
- The purpose of restriction:
- To balance the individual rights of enjoyment of the land against overall public
right to utilise the land for common good.
- Lacroix v The Queen: Where the plaintiff sued the Crown for setting up a flight way
over a part of his land, the court held that the plaintiff’s right of air space was limited,
and he failed to prove that he had been deprived of such right.
- A person’s right to use the air space is limited by what he can possess or
occupy for the use and enjoyment of his land. By putting up buildings the
owner does not take possession of the air, but unites or incorporates
something to the surface of his land, which then becomes a part of the
property.
- The necessity required for the enjoyment of the air space refers to the actual
and practical utilisation which the owner can afford over his land.
- Sec. 19(1) Civil Aviation Act 1969: No action can be maintained for nuisance or trespass
where an aircraft is flying at a reasonable height.
- However, action can be maintained against the trespasser if his activities
interfere with the owner’s use and enjoyment of land.
- Sec. 19(2) Civil Aviation Act: Action can lie where material loss or damage
occurs to the land by the flight of an aircraft.
- Swetland v Curtis Airports Corporation: Although the flying of an aircraft over land was
held to not amount to trespass, an airport cannot be established at a place where its
normal operation would deprive the plaintiffs of the use and enjoyment of their
property.
- An airport being built nearby would not allow a person to take action. However, when
its aircrafts fly at an unreasonable height and the aircrafts’ activities deprive such
person from his enjoyment of land, only then can action be taken.
Sec. 44(1)(b) Right of support by the adjoining land:
- A landowner is entitled to have his land supported by the neighbouring land and the
right to not have that support removed.
- Such right is necessary to:
- Safeguard the right of owners of the land from being interfered
- Uphold the concept of justice
- Apply the neighbourhood principle
- The right of support is a negative right in that it is a right not to lose natural support
from the adjoining land.
- The adjacent owner has a duty to support and not do something on his land or
property that might endanger the property of others.
- Guan Soon Tin Mining v Ampang Estate Ltd: The respondents claimed that the
appellants had withdrawn support from their land when the appellant’s mining work
caused damage to their land. The issue was whether the appellants were under a legal
obligation to support the respondents’ land.
- General rule: When a subsidence occurs to a neighbour’s land, he who causes
the subsidence is liable in damages.
- However, where there is a lapse of time between the excavation of land and
the occurrence of the resulting subsidence, and a change of ownership had
taken place during that interval, the new occupier will not be liable. Further,
where the subsidence was caused by additional weight imposed by such
building or structure on the land, then there cannot be said to have been a
withdrawal of support by the adjacent land.
- Held: The appellants were not liable as the land had already been excavated
before the appellants began occupying it.
- Right to sue for loss of right of support only arises when existing natural support from
the adjoining land is lost or interfered with.
- A person can only be sued where his actions or omissions result in the loss of
or damage to support, NOT if he fails to provide new or additional support
which was not in existence earlier.
- The right of support imposes a negative duty not to cause withdrawal of
support to the adjoining land, NOT a positive duty for the owner to provide
support to the other adjacent land.
Sec. 44(1)(c) Right of access to foreshore, river or public place:
- The landowner has a right of access to the land, which abuts on the foreshore, any
river, or public place.
- This right is subject to any express provision in the document of title/lease/license.
- The right is acquired through a contract between parties.
- To be able to pass or re-pass over someone’s land as a natural right.
- The right is imposed because:
- The owner of land would not have access to his own land
- There is bound to be trespass if such right did not exist
- It is only a privilege over somebody else’s land, and not a right to extract
anything from it.
Subsidiary Rights:
Subsidiary rights to land include:
- The right to extract rock material
- The right to fell, clear, destroy or use any forest produce or reserve
- The right to extract any metal or material
These are rights to land below the surface (Corbett v Hill).
Sec. 5: Rock material means any rock, stone, gravel, common sand… and includes processed
materials therefrom, other than minerals defined under any Mining Law.
Sec. 40(b): All minerals, rock material and forest produce are property of the State.
- Their ownership does not pass to:
- The proprietor upon alienation
- The lessee upon lease of reserved land
- The license holder upon issuance of TOL
Sec. 42(1)(d): The State Authority has the power to issue permits to extract, remove or
transport rock material.
Sec. 45(1) entitles a proprietor, lessee or license holder to a right to:
- Extract any rock material
- Fell, clear, destroy or use any forest produce or reserve
However, the owners of land do not own the rock material – it remains as a property of the
State Authority.
- Such rights may only be exercised within the boundaries of the land.
- A permit is required to remove them from beyond the boundaries of the land.
Sec. 45(2): Such rights of a proprietor, lessee, or license holder do not extend to:
- (a) Extraction of metal and minerals from rock materials
- (b) Removal of rock materials and forest produce from the boundaries of their land
- However, they may do so if:
- They have obtained a permit or license from the State Authority to remove the
rock materials from its boundaries.
- They have obtained a permit or license from the Forestry Department to
remove forest produce from its boundaries.
- They have been granted the necessary mining license from the Mining
Department to extract metal and minerals from rock materials.
Disposal otherwise than by alienation
Temporary Occupation Licence (Sec. 65 – 69):
Sec. 65(1): TOL is a licence granted by the State Authority to any person or body to occupy
State land, mining land or reserved land for a definite period.
Sec. 66: Persons authorised to issue TOL
Sec. 67(1): TOL is issued for a term not later than the end of the calendar year in which it
commences.
- Regardless of when it is approved, the licence will expire on 31 st December that year.
This restricts the types of activities that can be carried out on the land.
- TOL cannot be used for the planting of permanent crops, those which take more than
one calendar year to yield produce, or the erection of any permanent building or
structure, those that are taken to be fixtures and form part of the land, the removal
of which would cause irreparable damage to the land.
- TOLs for different purposes, but for the same land may be issued to different holders
(Mohamed v Kunji Mohidin).
Sec. 67(2): A TOL is conditional in nature as the State Authority can specify the purpose of the
licence in Form 4A.
- Using the land for purposes other than that specified would amount to a breach of
condition of the TOL, which would enable the State Authority to terminate the licence
immediately without paying any compensation to the TOL holder.
Sec. 69: The TOL issued shall include the extraction and removal of rock material.
Rights and obligations of a TOL holder:
- To pay annual fee
- A TOL holder is allowed to rent his house built on his TOL land
- A TOL holder may deal with his licence in any way so long as such transaction
does not amount to an assignment of the licence.
- Govindaraju v Krishnan: The appellant rented out two rooms at a monthly rent
of $30 to the respondent, and when the appellant terminated the tenancy, the
respondent refused to vacate the rooms and argued that the tenancy was void
as the appellant was only a TOL holder.
Held: The letting of rooms on a premise built on TOL land did not amount to a
transfer of the TOL, and was therefore, permissible. Thus, the respondent was
a trespasser as the tenancy had been lawfully terminated.
- TOL is not capable of transmission upon death or dissolution of the company
- Sec. 68: Upon the death of the TOL holder or the dissolution of the company,
the licence shall terminate, unless there has been a substitution of the licence
holder under Sec. 416, where an application had been made by the present
holder in Form 30C to the Registrar prior to the death or dissolution of the
company.
- Papoo v Veeriah: The widow of the deceased TOL holder applied for an order
to transfer to her name as sole beneficiary of the estate of the deceased
consisting of a house built on TOL land during the husband’s lifetime. Held: No
TOL land shall be transferable. TOL can never form part of the deceased’s
assets. It is not part of the estate and cannot be transmitted through the will
of the testator.
- Fatimah v Moideen Kutty: The appellant is the widow of the TOL holder who
owned two shop houses on his TOL land. The houses were rented to the
respondent. When the TOL holder died, the rental was made to the widow.
However, when the respondent defaulted in payment, the widow brought an
action against the respondent. Held: Every contract of tenancy of a house on
State land contains an implied term that the tenancy is valid only for the
duration of the landlord’s licence to occupy the land. Upon the expiration of
the licence through the death of the holder, the tenancy must be deemed to
have come to an end.
- A TOL holder is not entitled to any compensation upon the termination of the licence
- Once the licence terminates, all permanent buildings on TOL land will become
the property of the State Authority and the TOL holder may not claim any
compensation. Thus, a TOL holder takes the risk of losing what he has put into
that building.
- Teh Bee v K Maruthamuthu: The licence holder obtains no legal or equitable
rights over the land he occupies by virtue of the licence other than to occupy
the land temporarily from year to year… Under no circumstances can a person,
who has occupied land through a TOL, acquire a right to be compensated for
any expenses that he might have incurred over the land during the period of
his occupation.
- However, the State Authority will pay compensation to the TOL holder if, at its
discretion, the TOL is terminated or cancelled before its expiry date.
- A TOL holder will be deemed a trespasser if he does not leave the land upon the
termination of the licence
- PP v Yap Tai: Where the State Authority had given sufficient notice to the TOL
holder to vacate the land and remove his belongings upon termination of his
licence, refusal of the TOL holder to leave amounted to trespass.
Reservation and lease of reserved land (Sec. 62 – 64):
- Sec. 62(1): State Authority may reserve any State land for any public purpose such as
hospitals, schools, police station etc.
- Sec. 62(1) and (2): State land is reserved through a notification in the Gazette.
- Sec. 62(3): The notification shall be published in accordance with Sec. 433.
- Sec. 62(4)(b): Reserved land shall not be used for any purpose other than that for
which it is reserved.
- Reserved land cannot be alienated, unless it has been revoked from its reserved status
and becomes State land.
- Sec. 63(1): State Authority may grant a lease wholly or only for a part of the reserved
land that is not in used for any period not exceeding 21 years.
- An application may be made to the State Authority by the officer in charge of
the reserved land
- An application may be made by a person or body directly to the State Authority
after obtaining the consent of the officer in charge of the reserved land
- Sec. 63(2): Any lease granted shall be in form 4AA and may be subject to conditions.
- Sec. 64(1): The reservation of any land may be revoked, either wholly or partly, by the
State Authority at any time.
- Sec. 64(2): The revocation shall be done through a notice of proposal to revoke
published in the Gazette.
- State Authority will hold an inquiry to hear any objections that may be made
before decided whether or not to revoke the reservation.
- Sec. 64(3): Notice of revocation shall be published in accordance with Sec. 433.
- After revocation, the land will become State land.
- Sec. 64(4): Any lease of reserved land subsisting at the time of the revocation shall
continue despite the revocation of reserved land.
- In Government of Negeri Sembilan v Yap Chong Lan, the court ruled that the provisions
of Sec. 64 are a mandatory requirement which necessitates compliance before a
reservation of a State land may be rescinded. The reservation of State land can be
revoked at any time, even retrospectively.
Permit to extract rock material (Sec. 70 – 75):
- Sec. 70: State Authority has the power to issue permit to extract, remove and
transport any rock material from State land, alienated land, mining land and reserved
land.
- Sec. 71: Persons authorised by the State Authority to issue the permit.
- Sec. 72: Each permit to extract, remove and transport rock material is issued in Form
4C for a term not later than the end of the calendar year in which it commences.
- Sec. 73: A permit is not capable of transfer or transmission upon death of the holder
or dissolution of the company unless there has been substitution of holder under Sec.
416.
- Marble Terrazo Industries v Anggaran Enterprise: Any transaction assigning or
purporting to assign the rights and interests of the permit holder in the permit
is void for illegality as being in contravention of Sec. 73.
- If the permit has expired, but such person continues to extract, remove, and transport
the rock material OR if extraction, removal and transportation of rock material is
performed without a permit, such person shall be guilty of an offence under Sec. 426
in which he will be fined or imprisoned.
- Sec. 74: The permit holder may be required to pay a reasonable sum as security for
due performance imposed and the rehabilitation of the land.
- Sec. 75: If the land is subject to any conditions imposed by the NLC, any Mining law or
any other written law, the act of doing anything authorised under the permit will not
be taken to constitute a breach of such condition.
Permit to use air space (Sec. 75A – 75G):
- Sec. 75A: The State Authority has power to issue a permit for the purpose of erecting,
maintaining and occupying a structure on or over State land or reserved land.
- If reserved land is involved, consent from the officer in charge must be
obtained.
- Sec. 75B(1): Applications are to be made in a prescribed form addressed to the Land
Administrator and accompanied by
- A prescribed fee
- Details of the structure to be erected and a plan approved by the planning
authority
- If the structure is to be erected on or over reserved land, the application must
be accompanied with a letter of consent from the officer in charge.
- Sec. 75B(2): Once the State Authority is satisfied, the application will be approved.
- Sec. 75C: Upon approval of the application, the Land Administrator will issue a permit
in Form 4D.
- Sec. 75D: Permits shall be issued subject to a payment of annual fee and other terms
that may be specified.
- Sec. 75E: Permits are not capable of assignment except with the consent of the State
Authority.
- Sec. 75F: The Land Administrator may be directed by the State Authority to ask for a
payment of deposit as a security for the permit.
- Sec. 75G(1): Once there is a breach of any rule, term or condition, the State Authority
may cancel the permit issued immediately without compensating the permit holder,
and any deposit made will be forfeited.
- Sec. 75G(2) and (3): If the State Authority, at its discretion, cancels the permit any time
before its expiry date, the permit holder will be compensated.
Disposal by alienation
Definition: To convey or give away a right and title of a piece of State land to another party.
Process of alienation (Sec. 76 – 92):
- Application for the land under alienation
- Sec. 40: All State land is vested solely in the State Authority
- Sec. 41: The State Authority has the power to dispose the land and the right to
revert the land back to it.
- Sec. 42(a): The power to dispose land by way of alienation is only given to the
State Authority.
- Sidek Haji Muhammad & Ors v Government of Perak & Ors: Promises
made by the District Officer that each settler would receive three acres
of land did not amount to an approval for alienation.
- Kabra Holdings v Ahmad Sahlan: An oral agreement given by the
Menteri Besar of Selangor will not give the defendants any legal right
to occupy the land.
- Any persons or bodies within the scope of Sec. 43 may apply for alienation of
land.
- Sec. 76: Terms of alienation
- (a): For a maximum term of 99 years, or
- (aa): In perpetuity (forever) only if
- It is alienated to the Federal Government or a public authority
- The land is to be used for a public purpose
- State Authority is satisfied that there are special circumstances
rendering it appropriate to do so
- (b): In consideration of payment of an annual rent
- (c): In consideration of payment of a premium, unless exempted
- (d): Subject to a category of land use determined
- (e): Subject to conditions and restrictions in interest imposed
- Preparation of title
- Sec. 77(1): After payment of land revenue has been made, the State Authority
will determine the form of title to be issued
- Qualified Title (before survey is done)
- Sec. 5: Qualified title is title issued in advance of survey.
- A qualified title may be issued before a final title.
- The area of the land is not final and merely provisional. Thus, it is
incapable of being subdivided, partitioned or amalgamated.
- However, under the NLC, a proprietor of a qualified title has the power
to lease, charge or transfer the land.
- Final Title (after survey is done)
- State Authority will determine what form of final title to be issued.
- Sec. 77(3)(a): Registry Title for town or village land, any country land
exceeding four hectares, and any part of the foreshore or sea-bed.
- Sec. 77(3)(b): Land Office Title for country land not exceeding four
hectares.
- After determining the form of final title, regardless of which is issued, the State
Authority must prepare two forms of document of title.
- Register Document of Title: Documents evidencing title to land
- Issue Document of Title: A copy of, or an extract from, the RDT issued
to the proprietor
- Sec. 86: Form of documents for Registry Title
- Prepared by the Registrar
- RDT shall include:
- A grant in Form 5B if the term of alienation is in perpetuity
- A State lease in Form 5C if the term of alienation is for 99 years
or less
- A plan of the land certified by the Director of Survey
- IDT shall include:
- A copy of the RDT
- A plan of the land certified by the Director of Survey
- Registration
- Sec. 78(1): Alienation of State land under final title shall be effected in
accordance with Sec. 83 to 92.
- Sec. 78(2): Alienation of State land under qualified title shall be effect in
accordance with Sec. 176 to 182.
- Alienation will only come into effect upon the registration of RDT.
- Sec. 88(1): Registration of Registry title
- Registration of grant (Form 5B) or State lease (Form 5C) shall consist of
the authentication and seal of the Registrar on the RDT
- Sec. 88(2): Registration of Land Office title
- Registration of Mukim grant (Form 5D) or Mukim lease (Form 5E) shall
consist of the authentication and seal of the Land Administration on
the RDT.
- Sec. 122 for building and industry, the express conditions imposed may
be to determine
- The area of land to be built upon
- The type, design, height and structure of any building and the
type and quality of materials to be used
- The dates to begin or complete construction
- The use of any building
- A registered proprietor must comply with both, express and implied, conditions.
Restrictions in interest
- Sec. 5: A restriction in interest is any limitation imposed by the State Authority on any
of the powers conferred upon a registered proprietor to deal with his land by way of
a transfer, lease, charge, easement, tenancy or statutory lien over his land, as well as
his powers to subdivide, partition or amalgamate his land.
- The effect of a restriction in interest is that it limits the rights and powers of a
proprietor to freely deal with his land.
- If a registered proprietor wishes to exercise his restricted powers, he must first obtain
the consent of the State Authority.
- Failure to obtain consent to deal with the land will render any transaction
entered into by the proprietor void and unable to be registered.
- Wong Kim Swee v Tham Hock Cham: The restriction was that “the land upon
which the building stood could not be transferred, leased, tenanted, charged
or otherwise disposed of without the written approval of the Collector of Land
Revenue for a period of 10 years from the date of registration of the title.”
Therefore, an agreement for a lease executed without a written approval of
the Collector of Land Revenue in this case was held by the court to be incapable
of registration as it was in breach of the Code.
- Chin Tai v Siow Shiow & Ors: The restriction endorsed on the issue document
of title stated that “The land hereby alienated shall not be transferred, charged
or leased for a period of 10 years, except with the express permission in writing
of the Collector of Land Revenue, Jelebu.” Therefore, a transfer in favour of
the purchaser was held by the Federal Court to be incapable of registration
unless the permission of the Collector of Land Revenue was obtained since the
title to the land contained a restriction requiring such consent.
Sec. 104: All conditions and restrictions in interest imposed shall bind the proprietor and
anyone claiming interest in the land.
Sec. 105(1) & (2): All conditions and restrictions in interest imposed shall commence to run
from the date of alienation of the land and shall continue in force until the land is reverted to
the State Authority.
- Dr Ti Teow Siew: The applicant in this case contended that in determining the
commencement of the date of the restriction in interest, it is unnecessary to look into
the question of registration.
Held: In disagreeing with the applicant, it was ruled that since registration is the
cornerstone of the Torrens System, it is imperative to look at the date at which the
alienation of the said land was registered. Therefore, Section 105(1) must be read
together with Section 78(3) on how alienation is effected, in order to give a proper
interpretation as to when the period of restriction in interest begins to run.
Variation of Conditions, Restrictions in interest and Categories
- Sec. 124(1): The proprietor of any alienated land may apply to the State Authority to
vary conditions, restrictions in interest or the category of land use.
- Provided that every person having a registered interest in the land, or in
occupation of any part of the land, has consented to the application for
variation.
- Provided that any rent due has been paid.
- Sec. 124(5): In approving the variation, among the matter that the State Authority may
impose is other requirements as it may think fit that must be complied with.
- Pengarah Tanah Galian, WP v Sri Lempah Enterprise: The respondents applied
for a subdivision and conversion in order to develop a piece of land granted in
perpetuity. In response, a counter proposal was made that the respondents
should surrender their perpetuity title to the State in return for a 99-year
leasehold and the approval of their applications. Held: The State Authority has
no power to compel the proprietor to surrender its freehold title. The
discretion of the State Authority to impose such conditions as it may think fit
is not unfettered. The conditions imposed must be fair, reasonable and related
to the permitted development of the land.
- Cayman Development v Mohd Saad Long & Anor: The applicant wanted to
develop a piece of land under the category of agriculture, and thus applied for
conversion from “agriculture” to “building”. The State Authority, in approving
the application, imposed a requirement that all low-cost houses built were to
be sold to the public at a 5% discount of the price of RM25,000. Held: The State
Authority has no such power under Sec. 124(5) and had acted ultra vires the
NLC in imposing such a requirement.
Breach of Conditions (Sec. 125 – 129)
- Sec. 125(1): A breach of condition requiring continuous performance shall arise and
continue so long as the condition is not complied with.
- Sec. 125(2): A breach of condition subject to a fixed term arises
- For an act required to be done: upon the expiry of the time specified
- For an act required to be refrained: upon the doing of that act
- Collector of Land Revenue, Johor Bahru v South Malaysia Industries: The express
condition endorsed on the title was for the land to be used for light industries only.
Thus, its use for storing industrial chemicals and fertilizers was not a legitimate use
permitted and amounted to a breach of condition.
- Lam Eng Rubber Factory v State Director, Kedah: The express condition imposed was
that the land would be used for a rubber estate only. A rubber processing factory built
on the land and the State Authority claimed that the condition was breached. Held:
The setting up of the factory to process rubber was necessary and incidental to a
rubber estate and did not amount to a breach of condition.
- Upon any breach of any condition imposed, the Land Administrator has a choice of
three proceedings.
- Sec. 127(1A)(a): Serve a notice in Form 7E upon the proprietor requiring him to show
cause why a fine should not be imposed.
- Sec. 129(1): Where the proprietor has failed to comply with the notice served under
Sec. 128 OR the Land Administrator is of the opinion that taking action under Sec.
128 would not be appropriate, he will proceed to:
- Sec. 129(2)(a): Serve a notice in Form 7B upon the proprietor for an enquiry to be
held to forfeit the land.
- Sec. 129(3): Upon the service of notice, the Land Administrator shall endorse on the
RDT a note to the effect that the land is subject to action for breach of condition.
- Sec. 129(4): The date, time and place in which the enquiry will be held will be
specified in the notice.
- After the enquiry is held, there will be three possible conclusions.
(a): If the breach has (b): If the time to (c): The Land Administrator
been remedied, the remedy the breach is shall take temporary
endorsement shall be insufficient, the Land possession of the land as
cancelled. Administrator will may be directed by the
make an order State Authority OR make
specifying the action an order declaring the land
to be taken and grant to be forfeited.
an extension of time.
- Sec. 129(5): Where an order is made under Sec. 129(4)(b)
(a): If the order is complied (b): If the order is not complied with
with and the breach has and the breach has not been
been remedied, any note remedied, the Land Administrator
endorsed shall be cancelled. shall take temporary possession of the
land as may be directed by the State
Authority OR make an order declaring
the land to be forfeited.
- Sec. 129(6): Where temporary possession of the land has been taken by the Land
Administrator under Sec. 129(4)(c) or 129(5)(b)
- Sec. 94(2): Rent shall fall due in full on the first day of that year. If it is not paid until
the end of May, rent will be in arrears on the first day of June that year.
1st January 2013 31st May 2013: Rent is due
1st June 2013 31st December 2013: Rent is in arrear
- When rent is due, its actual amount shall be paid before the end of May that year.
- Once it has been paid within that period of time, the State Authority has no
right to issue a notice of demand.
- Sec. 95: Payment of rent must be made at the office of the Land Administrator or any
other place deemed fit.
- Sec. 96: The rate of rent differs depending on the
- Classification of land
- Category of land use
- The rate of rent payable is provided for by each State in its Land Rules.
- Sec. 97(1) & (2): When rent is in arrear, the proprietor will be served a notice of
demand in Form 6A and a note of the service of notice will be endorsed on the RDT.
- Pow Hing & Anor v Register of Titles Malacca: The appellant found an undated
and unsigned entry that Form 6A had been issued. Form 6A had been issued
to the proprietor for arrears of land rent, but there was no compliance with
Sec. 97(2). Held: The endorsement is a mandatory procedure, and not merely
directory. Non-compliance with Sec. 97(2) rendered the forfeiture invalid.
- Sec. 98(1): The sum demanded through the notice in Form 6A may be paid by any
person or body other than the proprietor.
- When the notice in Form 6A is served upon the proprietor, it also applies to
those who have an interest in the land.
- Sec. 98(3): Any sum paid by any person or body other than the proprietor shall be
recoverable through civil action, or is such person is the lessee, sub-lessee or tenant,
it shall be recovered through a deduction from any rent payable to the proprietor.
- Sec. 99: Payment of the sum demanded within the stipulated time will cause the
notice in Form 6A to cease to have effect and the note endorsed on the RDT will be
cancelled by the Land Administrator.
- Sec. 100: The Land Administrator shall not accept any amount lesser than that stated
in Form 6A.
- If the proprietor fails to pay the full amount after the expiry period stated in
the notice, the Land Administrator may by order declare for the land to be
forfeited to the State Authority.
- Sec. 101: The State Authority has the power to revise the rents from time to time.
- After revision is made, the rent payable may be increased or reduced.
- Any improvements made on the land shall not be taken into account in revising
the rent payable.
- Once revision is made, the Registrar or Land Administrator shall
- Amend the amount of rent endorsed on the RDT by substituting the
revised rent
- Note the date such amendment is made and authenticate the
amendment under his hand and seal.
Forfeiture
- Sec. 130(1): When an order is made under Sec. 100 or 129 declaring the land forfeit
to the State Authority, either for non-payment of rent or a breach of any condition,
the Land Administrator shall publish in the Gazette a notification of forfeiture in Form
8A.
- Upon the publication, the forfeiture will come into effect.
- Sec. 131: Effects of forfeiture
- (a) The land shall revert to the State Authority
- (b) Any buildings on the land shall vest in the State Authority, and no
compensation shall be made
- (c) Any item of land revenue due to the State Authority shall be extinguished
Subdivision, Partition & Amalgamation
Sec. 92(2): After registration of title, the proprietor of a final title has the right to subdivide,
partition and amalgamate the land.
Subdivision (Sec. 135 – 139):
- The process of separating alienated land held under a final title.
- Sec. 135(1): A person may apply for subdivision if he is the registered proprietor of
alienated land held under a final title and under a Registry or Land Office Title.
- Lee Chuan Tuan v Commissioner of Lands & Mines: Unless provided for by a
power of attorney, a lessee, not being the registered proprietor, is not
empowered to apply for the subdivision of the leased land.
- Sec. 135(2): For land under Registry title, the application will be approved by the State
Director, whereas for land under Land Office title, the application will be approved by
the Land Administrator.
- Effect of subdivision:
- A title will be issued for each new portion
- The existing title will no longer be effective
- The name of the proprietor or co-proprietor will appear in all the titles
- There is no termination of co-proprietorship
- In order for the application for subdivision to be approved, the nine conditions listed
in Sec. 136(1) must first be satisfied.
- Sec. 137(1): An application in writing shall be made to the Land Administrator in Form
9A and shall be accompanied by the other matters listed.
- Sec. 137(2): Upon receiving the application, the Land Administrator shall make an
endorsement on the RDT.
- Sec. 138(1): If the applications involved an approval from the State Director, the Land
Administrator will refer the application to the State Director together with his
recommendations.
- Sec. 138(2): If all the conditions are satisfied, or if a request for modification has been
attended to, the Land Administrator or State Director shall approve the application.
- Sec. 138(4): Upon approval, the Land Administrator will notify the proprietor of the
approval and request for payment of the survey fees and fees for the preparation and
registration of final title to the sub-divisional lots within a specified time.
- Sec. 138(5): If the application is rejected, the Land Administrator shall notify the
proprietor and cancel the note endorsed on the RDT.
- Sec. 139(1): Once survey is done, the final title for each portion of land subdivided will
be issued.
- Sec. 139(2): If the proprietor applied for the issuance of qualified titles for each portion
of land subdivided, then qualified titles will be issued.
Partition (Sec. 140 – 145):
- The dividing of land into portions so that each co-proprietor has a separate title to
that portion.
- The portion of land owned by each proprietor is proportionate to his undivided share
of the land.
- Sec. 140(1): Any two or more co-proprietors of alienated land held under a final title
and under a Registry or Land Office Title may apply for partition of the land.
- Sec. 140(2): For land under Registry title, the application will be approved by the State
Director, whereas for land under Land Office title, the application will be approved by
the Land Administrator.
- Effect of partition:
- Land will be divided into more than one portion
- The existing title is no longer effective
- Co-proprietorship will terminate
- Each co-proprietor will have his own separate title
- Sec. 141: In order for the application for partition to be approved
- Each co-proprietor must have consented to the application
- Each co-proprietor will be vested with his undivided share of the land
- The conditions under Sec. 136(1) for subdivision apply similarly to partition and
must be complied with
- Sec. 141A & 142(1)(e): A co-proprietor holding the majority of shares in the land may
apply for partition and is not required to obtain the consent of other co-proprietors.
- Sec. 142(1): An application for partition must be made in writing to the Land
Administrator in Form 9B and must be accompanied by the other matters listed.
- Sec. 142(2): Upon receiving the application, the Land Administrator shall make an
endorsement on the RDT.
- Sec. 142(3): If the application was made by the co-proprietor holding the majority
shares, the Land Administrator shall notify the other co-proprietors for any objection
to be made within 28 days.
- Sec. 142(4): After 28 days, if there are no objections, the application may be approved.
If there are objections, the Land Administrator shall notify the applicant and other co-
proprietors that an enquiry will be held at a specific time and place.
- If reasonable grounds exist, the application will be rejected.
- Sec. 143: Powers of Land Administrator or State Director in approving or rejecting the
application for partition. (Similar as in subdivision: Sec. 138)
- Sec. 144: Once partition is complete, a final title will be issued for each portion.
- Sec. 145(1): Where any of the co-proprietors are unable to agree to partition, those
wishing to do so may apply to the High Court for an order to partition. The court may
then order for the co-proprietorship to be terminated.
- Sec. 145(2): The court may order
- For the shares for those wishing to partition to be transferred to those who do
not wish to partition subject to compensation to the paid by the latter to the
other co-proprietors.
- For the land to be sold and the proceeds to be shared according to the
shareholding of each co-proprietor.
- Subramaniam v Inderjit Kaur: Direct assistance from the court under Sec. 145(1)(a) is
only available to minority shareholders.
- A majority shareholder must first apply for partition to the Land Administrator.
- Only when the application is rejected by the Land Administrator may he then
appeal to the court under Sec. 418 (right to appeal to any party aggrieved by
the decision of the Registrar or Land Administrator).
- A majority shareholder cannot apply directly to the court for partition.
Amalgamation (Sec. 146 – 150):
- The combination of two or more adjoining lots of alienated land.
- The lands are held under two or more separate title, but when combined, the land will
be held under a single title.
- Sec. 146(2): For land under Registry title whereby if combined exceeds 4 hectares, the
application will be approved by the State Director, whereas for land under Land Office
title whereby if combined does not exceed 4 hectares, the application will be
approved by the Land Administrator.
- Effect of amalgamation:
- One single title will be issued
- The names of all the proprietors will appear in the title together with the
shareholdings
- The previous titles will no longer be effective
- Sec. 147(1): An application for amalgamation will only be approved by the State
Director or Land Administrator if the conditions under Sec. 136(1)(a) to (g) are
satisfied.
- Proviso to Sec. 146(1): All lands applied for amalgamation must be located in the same
Mukim, town or village.
- Sec. 147(2): The sanction of the State Authority will be necessary in such
circumstances
- (a) Where the lots to be combined are under Land Office title and after the
combination, the area exceeds 4 hectares.
- (b): Where the lots intended for amalgamation are held partly under Registry
title and partly Land Office title
- (c) Where dissimilarity exists between any of the lots to be amalgamated in
regards to the term of alienation, rate of rent payable, and category of land
use, conditions and restrictions in interest imposed.
- Sec. 147(3): In such cases, the State Authority shall direct the
amalgamation to be approved with new conditions to overcome the
dissimilarity.
- Sec. 148(1): An application for amalgamation must be made in writing to the Land
Administrator in Form 9C and must be accompanied by the other matters listed.
- Sec. 148(2): Upon receiving the application, the Land Administrator shall make an
endorsement on the RDT.
- Sec. 149: Powers of Land Administrator or State Director in approving or rejecting the
application for amalgamation. (Similar as in subdivision: Sec. 138)
- Sec. 150: Once amalgamation is complete, a final title will be issued for the combined
area.
Dealings & Registration
- Sec. 5: Dealings mean any transaction with respect to alienated land effected under
the powers conferred by Division 4 of the NLC.
- There are 4 types of dealings recognized under the NLC:
- Transfers
- Leases and tenancies
- Charges and liens
- Easements
- However, not all the above dealings require registration.
- Dealings which require registration are:
- Transfers, leases, charges, easements
- Dealings which do not require registrations are:
- Tenancies, liens
- Sec. 205(2): All dealings in land, whether registrable or unregistrable, may be effected
in favour of persons or bodies to whom land is capable of being alienated under Sec.
43.
Transfer:
- Parties to a transfer are:
- Transferor: One who transfers the land
- Transferee: One who accepts the land
- A restriction is imposed to prevent the fragmentation of estate land which often has
the effect of dislocating the labour force on estates. (Bertam Consolidated Rubber v
CLR)
- Sec. 214A(4): If a person(s) wishes to transfer the estate land, he or they must,
together with the transferee(s), jointly submit an application in Form 14D to the
Secretary of the Estate Land Board.
- Kumpulan Sua Betong v Ezan: The requirement of the approval of the Estate Land
Board applies only where the transfer of the estate land is made to two or more
persons. Where an estate land is to be transferred to only one person, the approval
of the Estate Land Board is not required.
- Ong Chat Pang v Valiappa Chettiar: Pending the registration of the transfer
and upon payment of the full purchase price, the transferor becomes the bare
trustee of the transferee, in that he will hold the property in trust for the
benefit of the transferee. Until the registration is perfected, the position of the
transferee under the contract of sale is only that of a beneficial owner of the
land.
- The dealing of transfer is not only for alienated land, but also applies for the transfer
of a lease (Sec. 218(1) & 219)
Lease:
- Sec. 5: Lease is defined as a registered lease or sub-lease of alienated land.
- Parties to a lease:
- Lessor: One who leases the land
- Lessee: One who accepts the lease
- Sec. 221(1) & (2): The registered proprietor of an alienated land may grant a lease
wholly or partly to another party for a term exceeding three years.
- Sec. 221(3): The maximum term for a lease is
- 99 years if it relates to the whole alienated land
- 30 years if it relates to only a part of the land
- Sec. 221(4): In creating a lease, the registered proprietor and lessee are to execute
Form 15A and where the lease relates to only a part of the land, a plan and description
sufficient to enable the part to be accurately determined must be attached to the
instrument.
- The form must then be registered at the Land Office in order for it to be
effective.
- Sec. 206(1)(b): No instrument of dealing shall operate to affect any interest
unless it is registered.
- If the lease is not registered, the legal interest in the land will not rest with the
lessee, and the lease will be rendered void.
- The effect of a registered lease, as under Section 227(1), is that it would cause the
interest of the lessee to vest in him.
- Sec. 206(3): An exception that the requirement in Sec. 206(1) shall not affect any
contractual operation of any transaction of alienated land.
- Where the lease is unregistered, it is merely an agreement for a lease which
does not have the effect of vesting an interest in the lessee.
- It is still valid and enforceable as an agreement for a lease through Common
Law and Equity.
- Under Common Law: A lease need not be registered as a legal interest is created upon
signing the agreement.
- Elements of a lease under Common Law:
- There must be exclusive possession
- Lessee can exclude all persons including the lessor
- Lessor must not deprive the lessee of enjoyment of the land
- Mohamed Mustaffa v Kandasami: Where there is no possession, there
cannot be a transaction to lease.
- The lease must be of a definite period
- There must be a consideration of payment of rent
- Margaret Chua v Ho Swee Kiew & Ors: A registered proprietor granted a lease over a
shophouse for the term of 25 years, but never registered the lease at the Land Office.
The proprietor later decided to sell the land and gave the lessee an option to purchase
within three days. The lessee claimed for specific performance of the lease agreement
and the High Court allowed the claim. The proprietor appealed on the ground that the
lease was not registered, thus the agreement could not be specifically enforced.
Held: There was a clear existence of a binding written contract which the proprietor
was clearly in breach of, hence entitling the lessee to a remedy. Although the lease
was not registered, the agreement is valid as an agreement for a lease and can be
enforced in equity by decree of specific performance.
- Wan Salimah Wan Jaafar v Mahmood Omar: The lease agreement was as good as an
agreement enforceable in equity. Since the parties intended for there to be a lease,
equity must be invoked to carry out that intention effectively.
Tenancy:
- Sec. 213(1) & 223: A tenancy denotes a letting of land for a term not exceeding three
years and is not a registrable interest.
- It is not capable of being, nor is it required to be, registered.
- The parties involved in a tenancy
- Landlord: One who lets the land
- Tenant: One who accepts the tenancy
- Sec. 316(1): An application for endorsement of tenancy must be made to the Registrar
for the tenancy to be endorsed on the RDT.
- Sec. 316(2): An application must be accompanied by
- If the tenancy relates to only a part of the land, a plan and description sufficient
for the part to be identified must be attached.
- If the land is subject to a charge, a written consent of the chargee must be
attached.
- Sec. 317(1): Upon receiving the application, the Registrar shall
- Note the time it was received
- Make a note of the application in the Presentation Book
- Endorse the RDT with the word “exempt tenancy claimed”
- Sec. 317(3): The application shall be rejected by the Registrar if
- There has already been a registration of a transfer of the land or a certificate
of sale of the land
- The chargee’s written consent was not attached
- Sec. 317(4): The application will then be returned to the applicant, and the Registrar
shall note the rejection in the Presentation Book.
- Only when an endorsement has been perfected will the tenancy bind any subsequent
transferee.
- This will allow a tenant to remain on the land until the end of the tenancy agreement
despite the land having been transferred to another person or body.
- Failure to endorse a tenancy on the register document of title would not bind the
tenancy upon any subsequent transferee of the land.
- Than Kok Leong v Low Kim Hai: The plaintiff had purchased a premise, but at
the time of the purchase, the defendant was a tenant of the previous
proprietor. One and a half years later a notice to quit the premises was issued
by the plaintiff, upon which the defendant refused to vacate. The defendant
counter-claimed for specific performance and argued that the tenancy was
binding upon the plaintiff. Held: The tenancy was not binding on the plaintiff
under Sec. 213(3) as it had not been endorsed on the RDT.
- Sec. 318(1): The Registrar shall cancel any endorsement made under Sec. 317 if
- An order was made by the Court to do so
- The tenancy agreement has expired
- Sec. 318(3) & (4): The Registrar shall endorse against the cancelled endorsement a
note of the date of cancellation and the reason, and the cancellation shall be signed
and sealed.