lease & tenancies (nlc)

8/18/2019 Lease & Tenancies (NLC)

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Land TutorialWeek 2

PRESENTATION


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Question 1:

Explain the ain eleents inlease and tenan!"


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# Essential $ain Eleents%

1& 'irst( the lessee or tenant is )i*en the right to exclusivpossession o+ the deised preises durin) the ter o+ thlease or tenan!", I+ there is no )rant o+ a ri)ht to the ex!lusi*

possession o+ the preises( then there is no lease or tenan!",

A person -ho is )ranted a ri)ht to o!!up" preises .ut is no

)i*en ex!lusi*e possession( as -here the )rantor retains the ri)

to enter the preises at -ill or i+ he reains in )eneral !ontrol othe preises( a" onl" .e a li!ensee or the holder o+ a lesse

interest .ut not a lessee or a tenant,


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/ase La-:

In the !ase o+ Woo Yew Chee v Yong Yong Hoo [1979] 1 ML131, The 'ederal /ourt in this !ase de!ided that the ultiate teto de!ide -hether there is a ri)ht to ex!lusi*e possession( is 0thnature and ualit" o+ the o!!upan!", It ust .e deterine

-hether it -as intended that the o!!upier should ha*e a stake the su.3let or -hether he should onl" ha*e a pri*ile)e, Th'ederal /ourt in this !ase( looked at the a)reeent to interprethe intention o+ the parties -hether the a)reeent -as to !reata lease or a li!ense,


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2& Se!ondl"( a lease or a tenan!" ust .e )ranted +or a defniteperiod -hi!h is !apa.le o+ .ein) as!ertained,

A lease or tenan!" -hi!h has no de4nite tie o+ !oen!een

or period o+ duration is *oid +or un!ertaint",


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/ase La-:

In the !ase o+ Siew Soon Wah v Yong Tong Hong [1973] 1MLJ 133( the !ourt in asertained -hat -as eant ." the parties-ith the -ords 0tenan!" shall .e peranent in the -rittena)reeent( and that is that R should rent the preises +or aslon) as the landlord !ould let the and so lon) as R -ishes too!!up" and pa" rent, The a.o*e entioned -ords did not eanthat the tenan!" -as to .e in perpetuit" as there is no su!h thinin la- as a lease in perpetuit", I+ ho-e*er( the a)reeent -as*a)ue and un!ertain( it shall .e deeed to .e *oid +orun!ertaint",


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#& Thirdl"( there ust .e intention to create a lease or atenancy. I+ there is ex!lusi*e possession( .ut no intention( it isthen not a lease or a tenan!",


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/ase La-:

In the !ase o+ Kandasami v Musa!a [19"3] # MLJ "$, it -asheld that ex!lusi*e possession is no lon)er a de!isi*e +a!tor, Theutost iportant +a!tor in deterinin) -hether it is a lease or atenan!" is the intention o+ the parties in that dealin), The la.el o-hi!h the parties atta!h to their relationship( is not ne!essaril"!on!lusi*e in nature althou)h it a" a!t as a )uide, There+ore( i+there is ex!lusi*e possession( .ut no intention( it is then not alease or a tenan!",


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Question 2:

Illustrate and explain the ainprin!iples +ro the de!ided!ases and !o3relate -ith the NL/

pro*isions


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5 $ain Prin!iples

1) Leases or a Fixed Term

The axiu period +or -hi!h a 4xed ter lease a" .e )ranted 66 "ears in respe!t o+ the -hole land and #7 "ears in respe!t o+ pao+ the land, An" !ontra!t +or a perpetual lease is *oid +orun!ertaint",

A lease a" .e )ranted ." -a" o+ an oral or -ritten a)reeent, It

-ill( ho-e*er onl" ha*e a le)al e8e!t upon re)istration,

Se!tion 221 9&( Se!tion 2229& National Land /ode 16;<


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Case Law:

In the case of Siew Soon Wah v Yong Toh Hong [1973] 1 ML133( it -as held that there is no su!h thin) in la- as a lease inperpetuit", An" !ontra!t +or a perpetual lease is thus also *oid +oun!ertaint",


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2& Tenancy Exempt rom Registration

Tenan!ies not ex!eedin) three "ears a" .e )ranted and is

des!ri.ed in the National Land /ode as a 0tenan!" exept +rore)istration, Su!h tenan!ies are exepted +ro the reuireent ore)istration under the /ode, A!!ordin)l"( su!h a tenan!" shall .e

*alid -hether e8e!ted in -ritin) or ." -ord o+ outh onl",

A tenan!" a" .e prote!ted ." -a" o+ an indorseent on the

re)ister do!uent o+ title,

Se!tion 22#( Se!tion 21# 91& National Land /ode 16;<

Se!tion 27; 92& 9a&( Se!tion 27; 91& National Land /ode 16;<

Se!tion 22# 92& o+ the National Land /ode 16;<

Se!tion 21# 9#& o+ the National Land /ode 16;<


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/ase La-:

In the !ase o+ %a&a'ia (in Hana) v *('ahim (in Hana)ah

's [1999] - MLJ $."( the learned =ud)e( N> /han ?/A ade ao.ser*ation -ith respe!t to tenan!ies +or a 4xed ter -here.tenan!ies +or ters not ex!eedin) three "ears a" .e )ranteunder Se!tion 22# o+ the National Land /ode and this t"pe otenan!ies is des!ri.ed in Se!tion 21# 91& as a 0tenan!" exep+ro re)istration, Su!h tenan!ies are exepted under Se!tio27; 92& 9a& +ro the reuireent o+ re)istration under Se!tio

27; 91& o+ the /ode, A!!ordin)l"( su!h a 0tenan!" shall .e *al-hether e8e!ted in -ritin) or ." -ord o+ outh onl",


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#& Eect o on!Registration o a Lease

The NL/ does not !ontain an" pro*isions +or an unre)istered lease, It onl" pro*idesre!o)nition o+ the operation o+ !ontra!tual transa!tions ." appl"in) En)lish

euita.le prin!iples,'irstl"( an unre)istered lease a)reeent is !onsidered *alid and en+or!ea.le ." ade!ree o+ spe!i4! per+oran!e,

Se!ondl"( -here an a)reeent +or a lease has .een per+ored as -hen a lesseehas )one into possession( a !ourt o+ euit" -ill strain its po-er to de!ree spe!i4!per+oran!e,

Thirdl"( an entr" ." the lessee under an unre)istered lease or a lease a)reeent-ill !reate a le)al relationship o+ a landlord and a tenant esta.lishin) a tenan!" at

-ill, Su!h a tenan!" -ill .e !on*erted upon pa"ent o+ the rent reser*ed( into aperiodi! tenan!",

'ourthl"( an unre)istered lease !on+ers no le)al estate in the deised preises andoes not .ind a su.seuent re)istered proprietor,

And lastl"( pur!haser -ith noti!e that the *endor is not in possession o+ the landtakes su.=e!t to the ri)ht or interest o+ a tenant in possession not-ithstandin) the+a!t that the tenant a" ha*e entered under an unre)istered lease,


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#9.& Whe'e an ag'eemen !o' a 0ease has (een 4e'!o'med as when a0essee has gone ino 4ossession, a ou' o! eui2 wi00 s'ain is 4oweo de'ee s4ei) 4e'!o'mane5

Lin 2u& Chan v Wong S: Tsin [19.-] MLJ #;; 6a*in) re)ard to all this( the learned =ud)e does not re)ard these +eatures as.ein) so +undaental as to depri*e the appellant o+ a de!ree o+ spe!i4!per+oran!e( espe!iall" as he has apparentl" o.ser*ed all other pro*isions o+ th

lease and is still in possession -ithout an" attept to e*i!t hi ." therespondents, The learned =ud)e there+ore( renders the lease *alid anden+or!ea.le,


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#9!& /n en'2 (2 he 0essee unde' an un'egise'ed 0ease o' an ag'eemen!o' a 0ease wi00 'eae a 0ega0 'e0aionshi4 o! 0and0o'd and enanesa(0ishing a enan2 a wi005 Suh a enan2 wi00 (e onve'ed u4on 4a2men o! he 'en 'ese'ved ino a 4e'iodi enan2 whehe' 2ea'02,

monh02 o' wee&02 enan2 de4ending on he mode o! 4a2men o! he'en5

Lee /h Low v Cheong Le4 Keen /no' [197;] 1 MLJ 7 6


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36d8 /n un'egise'ed 0ease on!e's no 0ega0 esae in he demised 4'emiseand does no (ind he su(seuen 'egise'ed 4'o4'ieo'5

Ho Ying Ch2e v The Cheong Hua [19.$] # MLJ #.1 6High Cou', KuaLum4u'8

The re)istered o-ner o+ the land is Bui Shen @ene*olent Asso!iation as o+ the "ear 16<In ?ul" 16


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#9e& / 4u'hase' wih noie ha he vendo' is no in 4ossession o! he 0and a&essu(=e o he 'igh o' ine'es o! a enan in 4ossession nowihsanding he !aha he enan ma2 have ene'ed unde' an un'egise'ed 0ease5

ng Heng Hwa >ea02 Sdn ?hd v Teoh Chai Sio& [1977] 1 MLJ 1#- 6High Cou', /0oSea'8

The plainti8s( are the re)istered o-ners o+ the preises, The de+endant is a tenant o+ the said

preises, On Septe.er 1657( the plainti8s ser*ed on the de+endant noti!e to uit .ut the

de+endant re+used,

The de+endant denies that the tenan!" has .een terinated ." su!h noti!e and a*ers it as .ad

la- and not *alid on the )round that the tenan!" is +or a 4xed duration 7+ 7 "ears and that he

not in arrears o+ rent or in .rea!h o+ an" !o*enants !ontained in a -ritten a)reeent,

The plainti8s denies that the said a)reeent is .indin) on the on the )round that the" are noa part" to the said a)reeent, The alle)ed a)reeent -as exe!uted .et-een the de+endant an

the +orer landlords on 2C ?ul" 16


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& Endorsement o Tenancy

A tenan!" exept +ro re)istration does not .ind a su.seuentpur!haser unless prior to the transa!tion( an endorseent has .eeade on the re)ister do!uent o+ title,

Than ok Leon) * Lo- i >ai G16C#H 1 $L? 1C5


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/ase La-:

Than Ko& Leong v Low Kim Hai [19"3] 1 MLJ 1"7

The de+endant in this !ase !ontends that this tenan!" is a lease pursuant to an o

a)reeent ade .et-een hi and the +orer landlord -ho )ranted hi an oral lease +orperiod o+ three "ears to .e exer!ised ." hi,

The uestion that arose in this !ase -as -hether the oral a)reeent ade .et-een tde+endant and the +orer landlord is .indin) on the plainti8 -ho .ou)ht the land su.seueto the said a)reeent,

The !ourt in this !ase held that this oral a)reeent +or a ter o+ three "ears !oes undSe!tion 21# o+ the National Land /ode 9i,e spe!ial pro*isions -ith respe!t to tenan!ies exe+ro re)istration& nder Se!tion 21# 9#& it is pro*ided that no tenan!" exept +rore)istration shall .e .indin) on an" person or .od" to -ho the )rantor su.seuent

trans+ers the re*ersion expe!tant thereon( or to -ho he su.seuentl" )rants an" leassu.lease( tenan!" or !har)e,

The learned =ud)e also re+erred to Se!tion #1; 91& o+ the National Land /ode -hi!h pro*idthat an" person 0!laiin) to .e entitled to the .ene4t o+ a tenan!" exept +ro re)istratioa" appl" to the Re)istrar +or the indorseent o+ his !lai on the re)istered do!uent o+ titto the land a8e!ted, This( the de+endant in this !ase +ailed to do, There+ore( under Se!tion 29#& o+ the National Land /ode( this oral a)reeent is not .indin) on the plainti8,


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The !ase o+ Singma Sawmi00 Co Sdn ?hd v /sian Ho0dings

[19";]1 MLJ #1 has esta.lished that estoppel operates onl"-here there is a tenant in possession,


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;& Tenancy $oupled %ith E&uity

A tenan!" !oupled -ith euit" is -here a tenant takes possession othe land under an expe!tation en!oura)ed ." the landlord that he-ould ha*e a !ertain interest therein and expands one" upon theland on the expe!tation or proise( the landlord is estopped +roden"in) that proise or expe!tation,

De*i * 'ran!is G16;6H 2 $L? 1;6


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In the !ase o+ @evi v


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') Termination ( LeasesTenancies

A lease or tenan!" !an .e terinated ." -a" o+ expir" -here the Re)istrar a" !an!el theleasesu.lease or in !ases o+ tenan!ies( the indorseent on the re)ister do!uent o+ title i!an!elled,

A lease or tenan!" a" .e surrendered in a!!ordan!e -ith the reuireents o+ the Nationa

Land /ode as pro*ided under Se!tion 2#6,

A lease or tenan!" is lia.le to +or+eiture -hen there is a .rea!h o+ an" pro*ision or a personis de!lared a .ankrupt or a !opan" )oin) into liuidation,

$anner o+ +or+eiture is en+or!ed ." !ourt ." re3entr" or ." a!tion o+ the !ourt su.=e!t to an"other -ritten la- +or the tie .ein) in +or!e,Onl" a+ter the ser*i!e o+ a -ritten noti!e on thelesseetenant spe!i+"in) the .rea!h and to reed" the .rea!h !an a +or+eiture take pla!e,

I+ lesseetenant !ontinues o!!upation a+ter expir" o+ noti!e the lessorlandlord a" re!o*erpossession ." an order o+ the !ourt

Se!tion 27 91& National Land /ode 16;<

Se!tion 27 92& National Land /ode 16;<

Se!tion 2# 91& 9a& 9.& 9!& National Land /ode 16;<

Se!tion 2# 92& National Land /ode 16;<

Se!tion 2#< National Land /ode 16;<

Se!tion 5 Spe!i4! Relie+ A!t 16


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Expiry

*ection +,- 1) ational Land $ode

MThe Re)istrar a" !an!el the re)istration o+ the lease su. lease

*ection +,- +) ational Land $ode

MThe tenan!" indorsed on the RDT a" .e !an!elled

*urrender

A lease or tenan!" a" .e surrendered .e+ore its ter is up to the lessor or landlord,

The surrender ust .e in a!!ordan!e -ith the reuireents o+ the National Land /ode aspro*ided under Se!tion 2#6,

*ection +/0+) ational Land $ode

MLeasesu. lease !an .e surrendered ." exe!utin) 'OR$ 1


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Foreiture

*ection +/, 1) ational Land $ode

E*er" leasesu. leasetenan!" is lia.le to +or+eiture -hen% 9a3!&

o @rea!h o+ an" pro*ision

o Ad=udi!ated a .ankrupt

o A !opan" )oin) into liuidation

*ection +/, +) ational Land $ode

M$anner o+ +or+eiture is en+or!ed ." !ourt ." re entr" or ." a!tion o+ the !ourt su.=e!t tan" other -ritten la- +or the tie .ein) in +or!e

*ection +/ ational Land $ode

MOnl" a+ter the ser*i!e o+ a -ritten noti!e on the lesseetenant spe!i+"in) the .rea!h anto reed" the .rea!h !an a +or+eiture take pla!e

*ervice o 2alid otice to 3uit

A *alid noti!e to uit ust .e ser*ed su!ientl" on the lesseetenant,

In the 'ederal /ourt !ase o+ Muniand2 aA0 Tham(a Kaundan + /no' v @ + C ?an&?hd + /no' [199.] 1 MLJ 37-

The noti!e to uit takes e8e!t +ro the date it is ser*ed on the part" !on!erned and nothe date o+ the noti!e or the da" it -as sent


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Recovering 4ossession o Land*ection ' *pecifc Relie 5ct

MI+ lesseetenant !ontinues o!!upation a+ter expir" o+ noti!e thelessorlandlord a" re!o*er possession ." an order o+ the !ourt


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END

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