LAND LAW AND SURVEY REGULATION (SGHU 3313)

LAND LAW AND SURVEY REGULATION (SGHU 3313) WEEK 4-LAND DEALINGS SR DR. TAN LIAT CHOON 07-5530844 016-4975551 1

OUTLINE Registration of Dealings Concept and Types of Dealings Caveat and Prohibitory Order 2

REGISTRATION OF DEALINGS 3

The Necessity of Having Dealings in Alienated Land The provisions in National Land Code 1965 require certain dealings in alienated land or interest in it to be registered. This is to ensure that the dealings can be done quickly, cheaply and with certainty. Dealings in alienated land such as transfer, lease or charge of it are important because they contribute to the development of the land. The same applies to dealings in interest in alienated land such as transfer or charge of a lease of alienated land. The term alienated land is defined in S5 as any land (including any parcel of a subdivided building) in respect of which a registered title for the time being subsists, whether final or qualified, whether in perpetuity or for a term of years, and whether granted by the State Authority under National Land Code 1965 or in the exercise of powers conferred by any previous land law, but does not include mining land. 4

Type of Dealings The National Land Code 1965 provides 4 main types of dealings. These are as follows: a) Transfers; b) Leases and tenancies; c) Charges and liens; and d) Easement 5

Type of Dealings The main types of dealing under National Land Code 1965 which require registration are transfers, leases, charges and easements. Until registered, these dealings are not effective. For example, a transfer of land which is not registered is not recognized by the National Land Code 1965 and the person in whose favour the transfer is made cannot exercise the powers as a proprietor under that law. 6

CONCEPT AND TYPES OF DEALINGS 7

Urusniaga yang boleh Dilaksanakan, dan Orang-Orang yang Menjalankannya (S205) Tanah yang telah diberimilik dan kepentingan didalamnya yang ditetapkan dalam bahagian empat belas dan tujuh belas Kanun Tanah Negara 1965 sahaja. Oang atau badan-badan yang boleh membuat urusniaga ialah hanya mereka yang tertakluk di bawah S43 Kanun Tanah Negara 1965. Tiada urusniaga bagi tanah milik di bawah kategori pertanian yang keluasannya kurang daripada 2/5 hektar. 8

Transfer (Pindah Milik) 9

Powers to Transfer and its Restrictions S214 National Land Code 1965 provides that the following can be transferred: a) The whole, but not part only, of any alienated land; b) The whole, but not part only, of any undivided share in alienated land; c) Any lease of alienated land; d) Any charge; and e) Any tenancy exempt from registration. 10

Powers to Transfer and its Restrictions A part only of any alienated land cannot be transferred means that if Mr. Harun owns a piece of land and he wants to sell ¼ of it to Mr. Ali, he cannot fill up ¼ in the space share of land (if any) in Form 14A. In that space, he has to fill up whole. Since Mr. Harun is transferring only ¼ of his land, he too has to execute the same instrument as a transferee for the balance of ¾ share which he is not selling to Mr. Ali. 11

Powers to Transfer and its Restrictions A part only of an undivided share in alienated land cannot be transferred means that if Mr. Husin owns ¾ share of the land and he wants to sell to Mr. Yusof ½ of his share, he cannot fill up ½ in space share of land (if any) in Form 14A. In that space he has to write ¾. Since Mr. Husin is transferring only ½ of his ¾ share, he has also to execute that instrument as a transferee for the balance of 3/8 share which he is not selling to Mr. Yusof. 12

Lease (Pajakan) 13

Power to Lease and its Restrictions S221 National Land Code 1965 provides as follows: a) The proprietor of any alienated land can grant a lease of the whole or any part of it; b) Every lease granted must be for a term exceeding 3 years; c) In respect of a lease of the whole land, the maximum term is 99 years; d) In respect of a lease of part only, the maximum term is 30 years; and e) In respect of a lease of part only, a plan and description sufficient to enable the part to be accurately identified should be attached to the instrument. 14

Power to Sub-Lease and its Restrictions S222 National Land Code 1965 provides as follows: a) The lessee/sub-lessee can grant a sub-lease of the whole or any part of the land comprised in the lease or sub-lease; b) Every sub-lease granted must be for a term exceeding 3 years; c) In respect of a sub-lease of part only of alienated land, the maximum term is 30 years; and d) In respect of a sub-lease of part only of alienated land, a plan and description sufficient to enable the part to be accurately identified should be attached to the instrument. 15

Power to Sub-Lease and its Restrictions As stated in S225 and S226 National Land Code 1965, the power to grant a sub-lease is subject to the following: a) Any prohibition or limitation imposed by National Land Code 1965 or by any other written law for the time being in force; b) Any restriction in interest to which the land in question is for the time being subject; c) The provisions, expressed or implied, of the lease or sublease; d) The sub-lease cannot be granted to two or more persons otherwise than as trustees or representatives; and e) In a case where the lease or sub-lease is subject to a charge, the consent of the chargee of the lease must be obtained before the land under the lease can be sub-leased and the consent of the chargee of the sub-lease must be obtained before the land under the sub-lease can be further subleased. 16

Tenancy (Sewaan) 17

Apa yang Boleh Disewakan Tanah milik ke atas kesemua bahagian atau sebahagian daripada tanah. Pemegang pajakan atau pajakan kecil ke atas keseluruhan pajakan atau sebahagian. Pemegang sewaan dengan memberi sub-sewaan. Tempoh sewaan tidak melebihi 3 tahun. Sewaan tidak perlu didaftarkan, untuk melindunginya ia boleh memohon untuk dicatatkan tuntutan di bawah S316 Kanun Tanah Negara 1965. 18

Sekatan ke Atas Sewaan Larangan atau batasan yang dikenakan oleh Kanun Tanah Negara 1965 atau undang-undang bertulis yang berkuatkuasa pada masa itu. Mana-mana sekatan kepentingan yang berkaitan dengan tanah tersebut. Sewaan tidak boleh diberikan kepada 2 orang atau lebih melainkan sebagai pemegang amanah atau wakil. 19

Charge (Gadaian) 20

Power to Charge and its Restrictions S241 National Land Code 1965 provides as follow: a) The whole of any alienated land but not part of it can be charged; b) The whole of an undivided share in alienated land but not a part only can be charged; c) Any lease of alienated land can be charged; and d) The second and subsequent charges can be created. 21

Power to Charge and its Restrictions As stated in S241(3) National Land Code 1965, the power to charge is subject to the following: a) Any prohibition or limitation imposed by the National Land Code 1965 or by other written law for the time being in force; b) Any restriction in interest to which the land is for the time being subject; c) In the case of a charge of lease, the provisions, expressed or implied in the lease; d) In the case of a charge of sub-lease, the provisions, expressed or implied in the sub-lease; and e) Land, lease or sub-lease cannot be charged to two or more persons/bodies otherwise than as trustees or representatives. 22

Lien 23

Mewujudkan Lien dan Kesannya (S281) Mana-mana tuan punya atau pemegang pajakan boleh mendepositkan dengan mana-mana orang atau badan lain, sebagai jaminan untuk suatu pinjaman dokumen hakmilik keluarannya, atau pajakan penduanya mengikut manamana yang sesuai. Untuk melindungi kepentingan pemberi pinjaman, beliau akan memasukkan kaveat pemegang lien. 24

Mewujudkan Lien dan Kesannya (S281) Pemegang mana-mana lien berhak untuk memohon kepada Mahkamah untuk mendapatkan suatu perintah jualan bagi tanah atau pajakan itu. Seorang pemegang lien hendklah, atas permintaan bertulis daripada tuan punya atau pemegang pajakan dalam tempoh yang munasabah, mengeluarkan Dokumen Hakmilik Keluaran atau pajakan pendua dari Pejabat Pendaftaran atau Pejabat Tanah yang ditetapkan. 25

Easement (Ismen) 26

Power to Grant Easement and its Restrictions S285 National Land Code 1965 provides that the power of a proprietor to grant an easement is subject to the following: a) Any prohibition or limitation imposed by the National Land Code 1965 or by other written law for the time being in force; b) Any restriction in interest to which the land is for the time being subject; c) Consent of the lessee, tenant or chargee is necessary if the land is subject to any lease, tenancy or charge; and d) No cross-easements of support in respect of a party-wall may be granted by adjacent proprietors except in respect of a wall which stands on their common boundary and is certified by the Director of Survey to be so. 27

Power to Grant Easement and its Restrictions It is to be noted that an easement cannot be granted if the lands are held under titles of different registries. For example, a proprietor of an alienated land held under a Land Office title cannot grant an easement to the proprietor of an alienated land held under a Registry title. This is because under S304(5) National Land Code 1965, the same officer has to make two memorials on the Register Document of Titles of both lands (the dominant and servient). 28

Erti Ismen (S282) Easement ertinya apa-apa hak yang diberi oleh seorang tuan punya, selaku tuan punya, kepada seorang lain, dan untuk menikmati faedah dari tanahnya. 29

Hak-Hak yang Boleh Diberi Sebagai Ismen (S283) Apa-apa hak untuk membuat sesuatu dalam, atas atau kepada tanah menanggung itu (Servient). Apa-apa hak yang melarang sesuatu itu dilakukan. Hak-hak tersebut tidak termasuk: a) Apa-apa hak untuk mengambil sesuatu daripada tanah menanggung; atau b) Apa-apa hak kepada milikan eksklusif mana-mana bahagian darinya. 30

Pembatalan Ismen oleh Pendaftar (S291) Bahawa ianya telah dihapuskan di bawah S290. Tempoh ismen diberi telah tamat Ismen tersebut telah ditinggalkan. Ismen tersebut telah usang, dan pembatalannya tidak akan menjejaskan mana-mana orang yang berhak untuk mendapat faedah darinya. 31

CAVEAT AND PROHIBITORY ORDER 32

Caveat A caveat is an entry in the Register Document of Title to any land made by the Registrar of Title/Land Administrator on his own initiative (in the case of a Registrar s caveat) or upon receiving an application for its entry from a certain person or body (in the case of any other caveat). It has the effect of preventing certain instruments of dealing from being registered by the Registrar of Title/Land Administrator. The purpose of a caveat depends on its type. The National Land Code 1965 provides four types of caveat. These are the Registrar s Caveat, Private Caveat, Lien-holder s Caveat and Trust Caveat. 33

Pengenalan Kaveat Kaveat merupakan satu alat pengurusan yang mudah dan murah yang disediakan oleh Kanun Tanah Negara 1965 untuk melindungi kepentingan pihak-pihak tertentu. Walau bagaimanapun, kaveat ini hanyalah bersifat sementara sahaja dan belum lagi muktamad, ia merupakan tahanan sementara menantikan kata putus daripada mahkamah. Jenis-jenis kaveat: a) Kaveat Pendaftar; b) Kaveat Persendirian; c) Kaveat Pemegang Lien; dan d) Kaveat Pemegang Amanah. 34

Apa yang Boleh Dikaveat [S322(2)] Keseluruhan tanah. Syer yang tak dipecahkan. Kepentingan ke atas tanah 35

Registrar s Caveat 36

Circumstances for Entering a Registrar s Caveat Under S320 National Land Code 1965, the Registrar of Title/Land Administrator may enter this caveat in the Register Document of Title to any land for the following reasons: a) For the prevention of fraud or improper dealing; or b) For protecting the interest of: i. The Federation or the State Authority; or ii. Any person who is in his opinion under the disability of minority, mental disorder or unsoundness of mind, or is shown to his satisfaction to be absent from the Federation; or 37

Circumstances for Entering a Registrar s Caveat c) For securing that the land will be available to satisfy the whole or part of any debt due to the Federation or the State Authority, whether such debt is secured or unsecured and whether or not judgement has been obtained; or d) By reason of some error appearing to him to have made in the Register Document of Title or Issue Document of Title to the land or any other instrument relating. 38

Cancellation of a Registrar s Caveat According to S321(3) National Land Code 1965, a Registrar s Caveat shall continue to be in force until it is cancelled by the Registrar of Title/Land Administrator in the following circumstances: a) On his own motion; or b) On an application in that behalf by the proprietor of the land effected; or c) Pursuant to any order of the Court made under an appeal under S418 National Land Code 1965 to cancel the caveat. d) The Registrar of Title/Land Administrator will only cancel the caveat when he is satisfied that it is no longer required. e) According to S321(4)(a) National Land Code 1965, on cancelling the caveat, the Registrar of Title/Land 39 Administrator is required to inform the proprietor.

Private Caveat 40

Person or Body Capable of Applying for Entry of a Private Caveat Under S323(1), the following may apply for the entry of a private caveat in the Register Document of Title to any land: a) Any person of body claiming title to, or any registrable interest in, any alienated land or undivided share in any alienated land or any right to such title or interest; b) Any person or body claiming to be beneficially entitled under any trust effecting the alienated land or interest; and c) The guardian or next friend of any minor claiming to be entitled. 41

Withdraw and Cancellation of a Private Caveat A Private Caveat may be cancelled under the following circumstances: a) Upon an application for withdrawal by the person at whose instance the caveat was entered; b) In a situation as in S326(1) National Land Code 1965 (Removal of private caveats by Registrar ); c) Upon an order of the High Court; or d) At the expiry of six years from the time it took effect. 42

Lien-Holder s Caveat 43

Person or Body Capable of Applying for Entry of a Lien-Holder s Caveat Anyone with whom an Issue Document of Title to any alienated land or a copy of the Issue Document of Title issued under S343(1) National Land Code 1965 or a duplicate lease or a duplicate sub-lease has been deposited as a security for a loan may be for the entry of a Lienholder s Caveat in the Register Document of Title to the land [S330(1) National Land Code 1965]. 44

Effects of a Lien-Holder s Caveat A lien-holder s Caveat prohibits the registration, endorsement or entry only if the instrument or the application was presented or received after its for entry. 45

Withdraw and Cancellation of a Lien-Holder s Caveat A Lien-holder s Caveat may be cancelled under the following circumstances: a) Upon an application for withdrawal by the caveator; b) It lapses upon the registration of a certificate of sale issued as a result of sale made pursuant to an order of High Court at the request of the lien-holder; c) When the Registrar of Title/Land Administrator is satisfied that all the sums due under the lien have been duly paid; or d) Upon an order of the High Court; 46

Trust Caveat 47

Person or Body Capable of Applying for Entry of a Trust Caveat The following person or body may apply for the entry of a Trust Caveat in the Register Document of Title to any land [S332(1) and S333 National Land Code 1965]: a) The trustees in a Register Document of Title in respect of any alienated land or interest; b) The person or body who transfers the alienated or the interest to the trustees; or c) The person or body who applies under S344(2) National Land Code 1965 to the Registrar of Title/Land Administrator to be registered as trustee as the case may be in respect of alienated land or the interest. 48

Effects of a Trust Caveat As provided in the proviso to S332(2) of National Land Code 1965, a Trust Caveat does not prohibit the registration or endorsement or entry if the instrument or application was presented or received before the caveat takes effect. 49

Cancellation of Trust Caveat As provided in S335(5) National Land Code 1965, a Trust Caveat shall continue to be in force until cancellation by the Registrar of Title/Land Administrator on an application by the trustees together with the persons or bodies beneficially entitled under the trust. 50

Prohibitory Order 51

Meaning of Prohibitory Order According to S334 National Land Code 1965, a prohibitory order means where alienated land or interest in it held by a judgement-debtor is to be sold in execution proceedings, an order made pursuant to the rules of court by a court of competent jurisdiction prohibiting the judgement-debtor from effecting any dealing or from effecting such dealing as may be specified in the order. 52

Effects of a Prohibitory Order According to S336(1) National Land Code 1965, a prohibitory order which is expressed to relate to the alienated land itself prohibits the following: a) The registration of any instrument of dealing executed by or on behalf of the proprietor of the land; b) The endorsement of any claim to the benefit of tenancy exempt from registration granted by the proprietor of the land; and c) The entry of any Lien-holder s Caveat in respect of the land. 53

Cancellation of Entry of a Prohibitory Order An entry of a prohibitory order is cancelled by the Registrar of Title/Land Administrator under the following circumstances: a) At the expiry of six months from the date on which it was made by the court and the court does not issue an order to extend the period; b) On receiving a copy of the order of withdrawal or the order of cancellation or the order causing the prohibitory order to be ineffective, made by the court; c) On the registration of a transfer executed by an officer of the court on behalf of the judgement-debtor; or d) On the registration of a certificate of sale issued under sections 259(3) and 265(4) of National Land Code 1965. 54

Prohibition or Limitation on Dealings Imposed by Any Other Written Laws Some of the other written laws that prohibit or limit dealings are the laws relating to Malay reservations, Negeri Sembilan and Malacca customary lands. The Land (Group Settlement Areas) Act 1960 (S4) prohibits the transfer of a rural holding to more than one person. 55

Restriction in Interest S301(c) also provides that one of the conditions for an instrument of dealing to be fit for registration is that the dealing it effects should not be contrary to the restriction in interest to which the land is subject. The restriction in interest which the Registrar of Title/Land Administrator should be concerned with should be that pertaining to the powers of dealings only and not the powers to subdivide or partition land, or to amalgamate lands. A restriction in interest relating to dealing could be in the form to the effect that the land cannot be transferred, charged or leased without the permission of the State Authority. 56

Restriction in Interest In determining the fitness of an instrument of dealing, the Registrar of Title/Land Administrator should see whether a restriction in interest exists or not in the title effected by the dealing. If for example, the consent of the State Authority, Menteri Besar or the Land Administrator is required, the Registrar of Title of Title/Land Administrator should see that such a consent has been given before registering an instrument of dealing. The letter (conveying the consent) submitted to the Registrar of Title of Title/Land Administrator together with the instrument of dealing should be filed properly. 57

T H A N K YO U 58