LAND LAW AND SURVEY REGULATION (SGHU 3313)

WEEK 4-LAND DEALINGS

SR DR. TAN LIAT CHOON07-5530844

016-49755511

OUTLINE

• Registration of Dealings

• Concept and Types of Dealings

• Caveat and Prohibitory Order

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REGISTRATION OF DEALINGS

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The Necessity of Having Dealings in Alienated Land

The provisions in National Land Code 1965 require certain dealingsin alienated land or interest in it to be registered. This is to ensure thatthe dealings can be done quickly, cheaply and with certainty. Dealingsin alienated land such as transfer, lease or charge of it are importantbecause they contribute to the development of the land. The sameapplies to dealings in interest in alienated land such as transfer orcharge of a lease of alienated land.

The term ‘alienated land’ is defined in S5 as ‘any land (including anyparcel of a subdivided building) in respect of which a registered titlefor the time being subsists, whether final or qualified, whether inperpetuity or for a term of years, and whether granted by the StateAuthority under National Land Code 1965 or in the exercise of powersconferred by any previous land law, but does not include mining land’.

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Type of Dealings

The National Land Code 1965 provides 4 main types ofdealings. These are as follows:

a) Transfers;

b) Leases and tenancies;

c) Charges and liens; and

d) Easement

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Type of Dealings

The main types of dealing under National Land Code1965 which require registration are transfers, leases,charges and easements. Until registered, these dealings arenot effective.

For example, a transfer of land which is not registered isnot recognized by the National Land Code 1965 and theperson in whose favour the transfer is made cannot exercisethe powers as a proprietor under that law.

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CONCEPT AND TYPES OF DEALINGS

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Urusniaga yang boleh Dilaksanakan, dan Orang-Orang yang Menjalankannya (S205)

Tanah yang telah diberimilik dan kepentingandidalamnya yang ditetapkan dalam bahagian empat belasdan tujuh belas Kanun Tanah Negara 1965 sahaja.

Oang atau badan-badan yang boleh membuat urusniagaialah hanya mereka yang tertakluk di bawah S43 KanunTanah Negara 1965.

Tiada urusniaga bagi tanah milik di bawah kategoripertanian yang keluasannya kurang daripada 2/5 hektar.

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Transfer (Pindah Milik)

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Powers to Transfer and its Restrictions

S214 National Land Code 1965 provides that thefollowing 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 inalienated 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 transferredmeans that if Mr. Harun owns a piece of land and he wantsto 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 istransferring only ¼ of his land, he too has to execute thesame instrument as a transferee for the balance of ¾ sharewhich he is not selling to Mr. Ali.

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Powers to Transfer and its Restrictions

A part only of an undivided share in alienated landcannot be transferred means that if Mr. Husin owns ¾ shareof 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 Form14A.

In that space he has to write ‘¾’. Since Mr. Husin istransferring only ½ of his ¾ share, he has also to executethat instrument as a transferee for the balance of 3/8 sharewhich he is not selling to Mr. Yusof.

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Lease (Pajakan)

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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 ofthe whole or any part of it;

b) Every lease granted must be for a term exceeding 3years;

c) In respect of a lease of the whole land, the maximumterm is 99 years;

d) In respect of a lease of part only, the maximum term is30 years; and

e) In respect of a lease of part only, a plan and descriptionsufficient to enable the part to be accurately identifiedshould 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 thewhole or any part of the land comprised in the lease orsub-lease;

b) Every sub-lease granted must be for a term exceeding 3years;

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 tobe accurately identified should be attached to theinstrument.

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Power to Sub-Lease and its Restrictions

As stated in S225 and S226 National Land Code 1965, thepower to grant a sub-lease is subject to the following:

a) Any prohibition or limitation imposed by National Land Code1965 or by any other written law for the time being in force;

b) Any restriction in interest to which the land in question is forthe time being subject;

c) The provisions, expressed or implied, of the lease or sub-lease;

d) The sub-lease cannot be granted to two or more personsotherwise 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 obtainedbefore the land under the lease can be sub-leased and theconsent of the chargee of the sub-lease must be obtainedbefore the land under the sub-lease can be further sub-leased. 16

Tenancy (Sewaan)

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Apa yang Boleh Disewakan Tanah milik ke atas kesemua bahagian atau sebahagiandaripada tanah.

Pemegang pajakan atau pajakan kecil ke ataskeseluruhan pajakan atau sebahagian.

Pemegang sewaan dengan memberi sub-sewaan.

Tempoh sewaan tidak melebihi 3 tahun.

Sewaan tidak perlu didaftarkan, untuk melindunginya iaboleh memohon untuk dicatatkan tuntutan di bawah S316Kanun Tanah Negara 1965.

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Sekatan ke Atas Sewaan

Larangan atau batasan yang dikenakan oleh Kanun TanahNegara 1965 atau undang-undang bertulis yangberkuatkuasa pada masa itu.

Mana-mana sekatan kepentingan yang berkaitan dengantanah tersebut.

Sewaan tidak boleh diberikan kepada 2 orang atau lebihmelainkan sebagai pemegang amanah atau wakil.

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Charge (Gadaian)

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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 canbe charged;

b) The whole of an undivided share in alienated land butnot 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.

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Power to Charge and its Restrictions

As stated in S241(3) National Land Code 1965, the power tocharge is subject to the following:

a) Any prohibition or limitation imposed by the National LandCode 1965 or by other written law for the time being inforce;

b) Any restriction in interest to which the land is for the timebeing subject;

c) In the case of a charge of lease, the provisions, expressed orimplied 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 morepersons/bodies otherwise than as trustees orrepresentatives.

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Lien

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Mewujudkan Lien dan Kesannya (S281)

Mana-mana tuan punya atau pemegang pajakan bolehmendepositkan dengan mana-mana orang atau badan lain,sebagai jaminan untuk suatu pinjaman dokumen hakmilikkeluarannya, atau pajakan penduanya mengikut mana-mana yang sesuai.

Untuk melindungi kepentingan pemberi pinjaman, beliauakan memasukkan kaveat pemegang lien.

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Mewujudkan Lien dan Kesannya (S281)

Pemegang mana-mana lien berhak untuk memohonkepada Mahkamah untuk mendapatkan suatu perintahjualan bagi tanah atau pajakan itu.

Seorang pemegang lien hendklah, atas permintaanbertulis daripada tuan punya atau pemegang pajakan dalamtempoh yang munasabah, mengeluarkan DokumenHakmilik Keluaran atau pajakan pendua dari PejabatPendaftaran atau Pejabat Tanah yang ditetapkan.

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Easement (Ismen)

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Power to Grant Easement and its Restrictions

S285 National Land Code 1965 provides that the power of aproprietor to grant an easement is subject to the following:

a) Any prohibition or limitation imposed by the National LandCode 1965 or by other written law for the time being inforce;

b) Any restriction in interest to which the land is for the timebeing subject;

c) Consent of the lessee, tenant or chargee is necessary if theland is subject to any lease, tenancy or charge; and

d) No cross-easements of support in respect of a party-wallmay be granted by adjacent proprietors except in respect ofa wall which stands on their common boundary and iscertified by the Director of Survey to be so.

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Power to Grant Easement and its Restrictions

It is to be noted that an easement cannot be granted ifthe lands are held under titles of different registries. Forexample, a proprietor of an alienated land held under aLand Office title cannot grant an easement to theproprietor 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 theRegister Document of Titles of both lands (the dominantand servient).

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Erti Ismen (S282)

Easement ertinya apa-apa hak yang diberi oleh seorangtuan punya, selaku tuan punya, kepada seorang lain, danuntuk menikmati faedah dari tanahnya.

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Hak-Hak yang Boleh Diberi Sebagai Ismen (S283)

Apa-apa hak untuk membuat sesuatu dalam, atas ataukepada 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; ataub) Apa-apa hak kepada milikan eksklusif mana-mana

bahagian darinya.

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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 tidakakan menjejaskan mana-mana orang yang berhak untukmendapat faedah darinya.

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CAVEAT AND PROHIBITORY ORDER

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Caveat

A caveat is an entry in the Register Document of Title toany land made by the Registrar of Title/Land Administratoron his own initiative (in the case of a Registrar’s caveat) orupon receiving an application for its entry from a certainperson or body (in the case of any other caveat). It has theeffect of preventing certain instruments of dealing frombeing registered by the Registrar of Title/LandAdministrator. The purpose of a caveat depends on its type.

The National Land Code 1965 provides four types ofcaveat. These are the Registrar’s Caveat, Private Caveat,Lien-holder’s Caveat and Trust Caveat.

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Pengenalan Kaveat

Kaveat merupakan satu alat pengurusan yang mudah danmurah yang disediakan oleh Kanun Tanah Negara 1965 untukmelindungi kepentingan pihak-pihak tertentu.

Walau bagaimanapun, kaveat ini hanyalah bersifat sementarasahaja dan belum lagi muktamad, ia merupakan tahanansementara menantikan kata putus daripada mahkamah.

Jenis-jenis kaveat:a) Kaveat Pendaftar;b) Kaveat Persendirian;c) Kaveat Pemegang Lien; dand) Kaveat Pemegang Amanah.

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Apa yang Boleh Dikaveat [S322(2)]

Keseluruhan tanah.

Syer yang tak dipecahkan.

Kepentingan ke atas tanah

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Registrar’s Caveat

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Circumstances for Entering a Registrar’s Caveat

Under S320 National Land Code 1965, the Registrar ofTitle/Land Administrator may enter this caveat in theRegister Document of Title to any land for the followingreasons:

a) For the prevention of fraud or improper dealing; orb) For protecting the interest of:i. The Federation or the State Authority; orii. Any person who is in his opinion under the disability of

minority, mental disorder or unsoundness of mind, or isshown to his satisfaction to be absent from theFederation; or

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Circumstances for Entering a Registrar’s Caveat

c) For securing that the land will be available to satisfy thewhole or part of any debt due to the Federation or theState Authority, whether such debt is secured orunsecured and whether or not judgement has beenobtained; or

d) By reason of some error appearing to him to have madein the Register Document of Title or Issue Document ofTitle to the land or any other instrument relating.

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Cancellation of a Registrar’s Caveat According to S321(3) National Land Code 1965, a Registrar’sCaveat shall continue to be in force until it is cancelled by theRegistrar of Title/Land Administrator in the followingcircumstances:

a) On his own motion; orb) On an application in that behalf by the proprietor of the land

effected; orc) 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/LandAdministrator is required to inform the proprietor. 39

Private Caveat

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Person or Body Capable of Applying for Entry of a Private Caveat

Under S323(1), the following may apply for the entry of aprivate caveat in the Register Document of Title to any land:

a) Any person of body claiming title to, or any registrableinterest in, any alienated land or undivided share in anyalienated land or any right to such title or interest;

b) Any person or body claiming to be beneficially entitledunder any trust effecting the alienated land or interest;and

c) The guardian or next friend of any minor claiming to beentitled.

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Withdraw and Cancellation of a Private Caveat

A Private Caveat may be cancelled under the followingcircumstances:

a) Upon an application for withdrawal by the person atwhose 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; ord) At the expiry of six years from the time it took effect.

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Lien-Holder’s Caveat

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Person or Body Capable of Applying for Entry of a Lien-Holder’s Caveat

Anyone with whom an Issue Document of Title to anyalienated land or a copy of the Issue Document of Titleissued under S343(1) National Land Code 1965 or aduplicate lease or a duplicate sub-lease has been depositedas a security for a loan may be for the entry of a Lien-holder’s Caveat in the Register Document of Title to theland [S330(1) National Land Code 1965].

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Effects of a Lien-Holder’s Caveat

A lien-holder’s Caveat prohibits the registration,endorsement or entry only if the instrument or theapplication was presented or received after its for entry.

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Withdraw and Cancellation of a Lien-Holder’s Caveat

A Lien-holder’s Caveat may be cancelled under thefollowing 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 ofHigh Court at the request of the lien-holder;

c) When the Registrar of Title/Land Administrator issatisfied that all the sums due under the lien have beenduly paid; or

d) Upon an order of the High Court;

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Trust Caveat

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Person or Body Capable of Applying for Entry of a Trust Caveat

The following person or body may apply for the entry ofa 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 respectof any alienated land or interest;

b) The person or body who transfers the alienated or theinterest to the trustees; or

c) The person or body who applies under S344(2) NationalLand Code 1965 to the Registrar of Title/LandAdministrator to be registered ‘as trustee’ as the casemay be in respect of alienated land or the interest.

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Effects of a Trust Caveat

As provided in the proviso to S332(2) of National Land Code1965, a Trust Caveat does not prohibit the registration orendorsement or entry if the instrument or application waspresented or received before the caveat takes effect.

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Cancellation of Trust Caveat

As provided in S335(5) National Land Code 1965, a TrustCaveat shall continue to be in force until cancellation by theRegistrar of Title/Land Administrator on an application bythe trustees together with the persons or bodiesbeneficially entitled under the trust.

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Prohibitory Order

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Meaning of Prohibitory Order

According to S334 National Land Code 1965, a ‘prohibitoryorder’ means where alienated land or interest in it held by ajudgement-debtor is to be sold in execution proceedings, anorder made pursuant to the rules of court by a court ofcompetent jurisdiction prohibiting the judgement-debtorfrom effecting any dealing or from effecting such dealing asmay be specified in the order.

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Effects of a Prohibitory Order

According to S336(1) National Land Code 1965, aprohibitory order which is expressed to relate to thealienated land itself prohibits the following:

a) The registration of any instrument of dealing executedby or on behalf of the proprietor of the land;

b) The endorsement of any claim to the benefit of tenancyexempt from registration granted by the proprietor ofthe land; and

c) The entry of any Lien-holder’s Caveat in respect of theland.

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Cancellation of Entry of a Prohibitory Order

An entry of a prohibitory order is cancelled by the Registrar ofTitle/Land Administrator under the following circumstances:

a) At the expiry of six months from the date on which it wasmade by the court and the court does not issue an order toextend the period;

b) On receiving a copy of the order of withdrawal or the orderof cancellation or the order causing the prohibitory order tobe ineffective, made by the court;

c) On the registration of a transfer executed by an officer of thecourt on behalf of the judgement-debtor; or

d) On the registration of a certificate of sale issued undersections 259(3) and 265(4) of National Land Code 1965.

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Prohibition or Limitation on Dealings Imposed by Any Other Written Laws

Some of the other written laws that prohibit or limitdealings are the laws relating to Malay reservations, NegeriSembilan and Malacca customary lands.

The Land (Group Settlement Areas) Act 1960 (S4)prohibits the transfer of a rural holding to more than oneperson.

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Restriction in Interest

S301(c) also provides that one of the conditions for aninstrument of dealing to be fit for registration is that thedealing it effects should not be contrary to the restriction ininterest to which the land is subject.

The restriction in interest which the Registrar ofTitle/Land Administrator should be concerned with shouldbe that pertaining to the powers of dealings only and notthe powers to subdivide or partition land, or to amalgamatelands. A restriction in interest relating to dealing could be inthe form to the effect that the land cannot be transferred,charged or leased without the permission of the StateAuthority. 56

Restriction in Interest

In determining the fitness of an instrument of dealing,the Registrar of Title/Land Administrator should seewhether a restriction in interest exists or not in the titleeffected by the dealing.

If for example, the consent of the State Authority,Menteri Besar or the Land Administrator is required, theRegistrar of Title of Title/Land Administrator should see thatsuch a consent has been given before registering aninstrument of dealing. The letter (conveying the consent)submitted to the Registrar of Title of Title/LandAdministrator together with the instrument of dealingshould be filed properly.

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T H A N K YO U

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