Tutorial 4/5

1. Ali and Abu need to undergo a process in order to sell his piece of land to Abu. After the
process, Abu will be the new registered owner of the land.

Transfer
Section 214(1) of NLC 1965:
- The whole, but not a part only, of any alienated land;
- The whole, but not a part only, of any undivided share in alienated land;
- Any lease of alienated land;
- Any charge; and
- Any tenancy exempt from registration

2. Explain your understanding about difference in

a. tenancy and lease

Tenancy Lease

Duration less than 3 years Duration more than 3 years

Non-register able Register able

Tenant and Landlord Lessor and Lessee,

Lessee will have registered interest

which will have priority over any
unregistered interest.

b. charge and lien

Charge Lien

Security of repayment of a loan Security for a loan

To create a change, the parties must To create lien, no registration form is

undergo several procedures including required
registering from form 16A

Remedy for default – apply for order Lien holder to lodge a lien-holder’s
for sale or take possession caveat in form 19D

Creation of charge is onerous Remedy – to prove the debt and get

order for sale

Creation of a lien is speedy

A charge may not only empower its possessor in many cases to hold the property
charged, if it is in his possession, but also to enforce it in a court of law. A lien, on
the other hand, is simply a right to possess and retain property until some change
attaching to it is paid or discharged.
3. With a sketch of a table, please elaborate your understanding about “Not all the dealings
can be registered”.

Dealing that can be registered Dealing that cannot be registered

Transfer Tenancy – exempted from registration

Lease Lien

Charge

Easement
4. What is the advantage of being “registered”?
Section 206(2) stated that no instrument of dealing shall operate to effect any interest
unless it is registered.

Upon registration, a dealing will have legal effect and interest of the parties shall vest in
term upon registration.

For example. A lease must be registered. Unregistered lease is void but contract to the
dealing between the contractual parties is still valid, it is enforceable under the law of
contract.