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Ownership

1. What is meant by ‘land ownership’?

Right of people to the land, specifically the power of disposition over land and the right to
use the land.

2. Rights of an owner of land

Paramount rights
1. the exclusive use and enjoyment of so much of the column of air space above the
surface of the land, and so much of the land below that surface, as is reasonably
necessary to the lawful use and enjoyment of the land.
2. The right to the support of the land in its natural state by any adjacent land, and all
other natural rights subsisting in respect thereof
3. Rights of access to foreshore, river or public space

Subsidiary rights
Extract, move or use rock material and to fell, clear, destroy or use forest produce, provided
always that these rights are exercised strictly within the confines of the land

3. Legal owner of land known as under the National Land Code?

Proprietor

Possession
1. What is the difference between ownership of land and possession of land?
Ownership - an individual has legal rights over a property and the land belongs to him.
Ownership signifies permanence
Possession - physical control over a land. Possession does not imply ownership. Possession is
mostly temporary and only have physical control
2. What are examples of transactions where an owner grants to another person a right of
possession over land?
An owner of a piece of land could rent the land to someone to cultivate it, the tenant would
possess the land. However, the owner does not give up ownership simply by renting it to
someone else. The owner still has the legal rights over the land and the land still belongs to
the owner.

Fixture and Chattel

1. Define ‘fixture’ and define ‘chattel’.

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Fixture: Fixtures in effect can be defined or viewed as “An article which was once a chattel
but which has now become a part of land." [1] It is a legal concept in law, which is used to
define a “permanently attached or fixed to real property." [2] In the event of sale of land,
fixture is usually sold as a part of land, except otherwise stated in a conveyance report. It is
however, the practice in some jurisdiction, the purchaser automatically owns the fixtures as
part of the purchase. Exception is made when clear terms are stated in a sales contract. A
fixture becomes more apparent when it is attach to land to enhance the use or increase its
value. A building which a foundation rested directly on land is an obvious and typical
example of a fixture.
Chattel: Chattels can be described as any property except freehold land. These are usually
moveable items of property that are neither land nor permanently attached to land or a
building, either directly or vicariously through attachment to real property. Chattels are said
to retain their independent character as personality despite close association with the realty.
[3] Chattels which are affixed in any form to make a permanent improvement of land, are
retained by a mortgagee unless otherwise stated in a sales contract or intentional left out in
conveyance report.
Give examples.
Fixture: Personal property attached on the land such as electrical appliances and furniture.
Chattel: Tangible moveable property such as cows and clothes.
2. How is a chattel different from a fixture?
A chattel is a physical object which never becomes attached to the land even though placed in
some close relation with it and so does not pass with conveyances of the land.
‘Fixtures’ on the other hand are those material things which are physically attached to land so
that they become part of the realty and the property of the landowner. An object which
becomes a fixture merges, so to speak, with the land and accordingly passes automatically
with all subsequent conveyances of the land unless lawfully severed from it.
Give examples
Common examples of fixtures are ceiling lights/fans, built-in closets, and coat hooks.
Common examples of chattels are appliances, furniture, area carpets (not tied down),
paintings, and curtains/drapes.

Dealings
1. What are dealings relating to land?

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In general, they are transfers, leases, charges, easements, tenancies and liens.
Give examples under the National Land Code 1965.
According to Section 5 of NLC 1965, dealings refers to a transaction with respect to alienated
land effected under the powers conferred by Division IV and any like transaction effected
under the provisions of any previous land law but does not include any caveat or prohibitory
order. Section 205 of NLC is concerned about dealings that are capable of being effected
under the Code with respect to alienated land and interest therein shall be those specified
under Part Fourteen to Seventeen. Part Fourteen of NLC discusses about transfer, Part Fifteen
about leases and tenancies, Part Sixteen in regards to charges and liens and Part Seventeen
states about easement. Lastly, Section 206(1) of NLC stated that those four types of dealings
would require specific instrument for purposes of registration as opposed to lien and tenancy
which do not require registration.

DISPOSAL OF LAND BY THE STATE’

1. What section of the National Land Code 1965 (‘NLC’) deals with ‘disposal of land by the
State Authority?
The state has been granted with powers to dispose land under Section 42 of National Land
Code 1965. Under this section, it stated five methods on how State Authority can dispose
lands. Subsection 2 of the said section has laid down the restrictions with regard to the power
that has been granted to the State Authority. They cannot dispose lands on the purpose of
mining, it cannot permit the extraction or removal of rock material for the purpose of
obtaining metal or mineral, they may not dispose the land for the purpose of removing any
forest procedure and the State Authority cannot alienate any land held under the category of
agriculture or subject to any condition requiring it to be used for agricultural purposes to one
person or body that will result in the said land being less than two-fifths of a hectare.
2. What are the 5 methods of disposal of land by the State Authority under the NLC?
According to Section 42 of NLC, the first method of disposal of land by State Authority is by
alienation of the land in accordance to Section 76 of NLC. Secondly, State Authority has the
power of reservation of land which included granting leases of reserved land in accordance to
the provision of Chapter 1 of Part Four. Thirdly, they also have the power to grant a
temporary occupation license to occupy land, reserved land and mining land in accordance to
Chapter 2 of Part Four. Fourthly, they can permit the extraction and removal of rock material
from any land other than reserved forest in accordance to provisions of Chapter 3 of Part
Four. Lastly, State Authority can permit the use of air space on or above land in accordance to
provisions in Chapter 4 of Part Four.

Caveat
1. What is meant by a caveat under land law?

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Caveat means a registered caveat in the interpretation of Section 5 of the National Land
Code. The caveat is a mechanism that prevents the registration of the transaction under the
National Land Code and to restrain dealings that is regulated by the provisions in Part
Nineteen of the National Land Code in order to protect the interests of certain parties.
2. Who applies for a caveat?
Caveat serves as a warning to every one of the existence of a claim to title or interest in the
land that the person who enters the caveat is seeking to protect. A person who enters a caveat
is a caveator and the person whose land or interest is affected by caveat is a caveatee.
3. What is the function of a caveat?
The lodgement or entry of a caveat is an interim procedure designed to give an opportunity to
a person claiming under an unregistered instrument to regularize the position by registering
the instrument.

Charge
1. What is meant by ‘charge’ in the following sentence?
“Maybank holds a charge on the land.”
Based on the above sentence, the ‘charge’ means a transaction whereby the registered
proprietor of an alienated land or a lease conveys it as a security for the repayment of a loan,
an annuity or any other periodical payment, to another. Therefore, the land is regard as a form
of security to the bank (as a lender) for the payment of loan. Essentially a ‘charge’ creates an
equitable proprietary interest in the asset being secured. The charge on the secured and
terminates once the loan is discharged. As enumerated in section 242 of National Land Code,
the purpose of a charge is to secure the repayment of a debt, or the payment of any sum other
than a debt.
2. Why is a charge created on land?
According to section 241 (1) of NLC, a charge can be created on a piece of land, a whole of
any undivided share in alienated land or any lease of alienated and. In a loan agreement, the
borrower shall offer a land as a security which then both parties execute charge documents as
provided under NLC. The land, as a charged property will be utilized to recover any
outstanding amount or any debt due (in the event the borrower fails to pay the loan). The
chargee will be eligible to opt for remedies available under NLC.
3. Who can charge land?
A registered proprietor of the land is the person who can charge the land. This can be referred
in Section 43 as well as section 241(4) of NLC. Registered proprietor includes natural
persons, corporations that have power under their constitutions to hold land, sovereigns,
governments, organizations and other persons authorized to hold land under the provisions of
the Diplomatic Privileges (Vienna Convention) Act 1996, the International Organizations

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(Privileges and Immunities) Act 1992 and the Consular Relations (Vienna Convention) Act
1999 and also any bodies empowered to hold land under any written law.
4. Who is usually the ‘chargor’ and who is usually the ‘chargee’?
The proprietor of the land or the lease is known as the ‘chargor’ and the person to whom the
property is conveyed or in whose favour the charge has been effected is called the ‘chargee’.

Alienation
1. What is meant by ‘alienation of land by the State Authority’?
Alienation of land by State Authority is another mode of disposal of state land as provided
under section 42(1) (a). Alienation of land means to convey or give away a right and title of a
piece of state land. An elaborate definition of the word alienate is provided under Section
5 .According to section 5 of the NLC alienate means to dispose of State land in perpetuity or
for a term of years, in consideration of the payment of rent and otherwise in accordance with
the provisions of section 76 or, when used in relation to the period before the commencement
of this Act, to dispose of State land in perpetuity or for a term of years under a previous land
law.
The meaning of alienation under Section 76 is the disposal of State land by State Authority
through (a) term not exceeding 99 years; or (aa) perpetuity (forever); Payment of rent;
Payment of premium; Subject to category of land use; Subject to condition and restriction in
interest.
2. Which section of the NLC deals with land alienation?
Section 76 of the National Land Code 1965

REGISTER DOCUMENT OF TITLE’ (RDT) AND ISSUE DOCUMENT OF TITLE

(IDT)
1. What is a Register Document of Title?
The RDT is a copy of title bound up in the appropriate Register or book at the Registry or
Land Office and is available to the public.
2. What rights does a RDT give to a holder?
It is conclusive evidence that the person or body being named on the register document of
title as the proprietor to the property. The register document of title kept in the Register of
Titles Office or the Land Offices is actually the real proof of ownership in comparison with
the issue document of title which is usually under the safekeeping of the owner. Persons
dealing with the registered proprietor of the land can safely act on the information presented
on the register, not necessary to go behind the register to ascertain the validity of the

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information. It furnishes all the necessary information such as the name of the proprietor for
the time being, the actual land alienated, its area and location as described in the register of
the title.
3. What is an Issue Document of Title?
The IDT is the copy of the title that (usually) the owner keeps. Who has physical possession
of the IDT is an important fact in some cases, as it is proof that this person has an interest in
the land, even if they are not listed as the owner.
4. To whom is an IDT granted to?
The proprietor.

Differentiate
1. Legal ownership and equitable ownership
‘Title to land’ and ‘interest in land’
Legal ownership refers to the responsibilities and duties the owner has in maintaining, using
and controlling a property. Legal ownership is the actual ownership of the property. The
documented name of the property owner, as visible through the public records, typically
describes the person with legal ownership. Legal ownership grants true ownership of the
property, and all that this entails. Rights included are mineral rights, easement rights,
development rights, possession and control, exclusive use, conveyance rights and right of
disposition. The legal owner of the property (the “trustee”) has the right to possession, the
privilege of use, and the power to convey those rights and privileges. The trustee thus looks
like the owner of the property to all the world except one person, the beneficial owner
(“beneficiary”). As between the trustee and the beneficiary, the beneficiary receives all the
benefits of the property. The trustee has the fiduciary duty to the beneficial owner to exercise
his legal rights, privileges, and powers in such a way as to benefit not himself but the
beneficiary. If the trustee fails to do this, the courts will require him to account to the
beneficiary and may, in extreme cases, remove him as legal owner and substitute another in
his stead. Equitable ownership is the enjoyment of the property. It is the benefits the buyer
will get to use and enjoy when he or she becomes the legal owner. Equitable ownership isn't
“true ownership”. However, it grants the person more consistent control over the property.
The person with equitable ownership is often in charge of financing the property, and the
right to acquire formal legal ownership of the land.
The main difference between an equitable ownership and a legal ownership is that the
latter is the only one that gives actual ownership of the property. In general, equitable
ownership gives a person the right to use the land and enjoy the benefits that come along with
its ownership. Legal ownership does not necessarily grant these rights. Equitable ownership
does not allow the titleholder to sell or transfer ownership. Legal ownership has the
advantage over equitable in that it allows the legal owner to demand compensation from
parties that purchase or lease the property.

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2. ‘Title to land’ and ‘interest in land’

Title to land is a legal document which proves ownership or possession of a property,
whether it is land or buildings developed on the land. Generally, all land title records are kept
at the Land Office, or Registry. Land titles are used to simplify the process of transferring
ownership, but can also play a part in fraudulent and land transactions.
Interest in land denotes a right over the land but having lesser right than proprietor or
ownership. The interest on land is restrictive in nature. It depends on the type of dealings
been entered into. The NLC only recognises certain interest in land, for instance a registered
chargee, a registered lease, a tenacy and a registered easement. This means that the chargee,
lessee, tenant and dominant tenement only have interest in land but not title to land. Interest
in land means any ownership or possessory right with respect to real property, including
ownership in fee, an easement, a leasehold, and any subsurface or mineral rights.

3. ‘Transfer of land’ and ‘transmission of land

When a single registered owner, or an owner holding title as a tenant in common dies, land
cannot pass directly from the deceased to the beneficiaries. Instead the land must first be
transmitted into the name of the personal representative. The personal representative will hold
the land in trust for the purpose of administering the estate and can transfer the land to the
beneficiaries. Transmission of land means the acquirement of title to an estate. A transmission
may be registered when the estate has vested at law in the applicant. The first transmission
should be a transmission by survivorship to the last surviving joint tenant. The second
transmission should be a transmission by executor or administrator from the executor or
administrator of the estate of the last surviving joint tenant. In contrast, transfer of land is
used to convey ownership of property. A deed is labeled an instrument of conveyance. A deed
must describe with reasonable certainty the land that is being conveyed. The conveyance
must include operative words of grant. However, technical terms do not need to be used. The
grantor must be adequately identified by the conveyance, although it is not required that the
grantor's name be specifically mentioned. State laws sometimes require that the deed indicate
the residence of the grantor by town, city, county, and state. In order for title to property to
pass, a deed must specify the grantee with sufficient certainty to distinguish that individual
from the rest of the world. Some statutes mandate that the deed list the grantee's residence by
town, city, county, and state.

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