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Law504 - Topic 9 (Dealings)
Law504 - Topic 9 (Dealings)
LAND LAW I
DEALINGS
Ismah Ismail 1
INTRODUCTION
S. 5 – “Dealings” mean any transaction with respect to
alienated land effected under the powers conferred
under Division IV of the NLC.
It does not include any “Caveat” or “Prohibitory
Order”.
Caveat & P.O = restraint of dealings.
Ismah Ismail 2
DEALINGS
S.205(1)- dealings capable of being affected under the
NLC in respect of alienated land and interests therein
are those stated in Parts 14 – Part 17 and no others.
Ismah Ismail 3
Dealings … ctd
S.292(1) - Dealings that require registration are:-
Transfers (including Certificate of Sale);
Leases
Charges; and
Easements
Ismah Ismail 4
DEALINGS
~TRANSFER~
Term used
Transferor – party who transfer the land;
Transferee- party who accepts the transfer.
Ismah Ismail 6
Transfer … ctd
What May Be Transferred? S.214
Ismah Ismail 7
Transfer … ctd
Peter Lai Kee Chin & Anor v Collector of Stamp
Duties (1973) 2 MLJ 33
Proprietor wished to transfer ½ of his share in the
land to the wife as a gift. He executed a transfer of the
whole of the land to himself and his wife in equal
undivided shares. Collector of Stamp Duties sought to
asses duty on the total value of the land.
Court : No contravention of S.214 when husband
transfer ½ share to his wife and the other ½ share to
himself.
Ismah Ismail 8
Transfer … ctd
Tan Chiw Thoo v Tee Kim Kuay
[1997] 1 CLJ 541
Court : It has been the accepted conveyancing practice
among solicitors for many years and such practice has
been recognised and even adopted by the Courts, that
it would be lawful, that the 1st titleholder can execute a
transfer of the said lot to himself and to the 2nd
titleholder, each to take half undivided share of it in
one memorandum of transfer.
Ismah Ismail 9
Transfer … ctd
Tan Peng Huat & Anor v Tan Boon Chong & Anor
[2015] 2 CLJ 921
Low and Tan purchased a portion of Lot 380 and each
of them held ½ undivided shares. Low sold her
undivided shares in the land to 1st and 2nd P as joint
owners. However, Low & Tan later sold all their share
in Lot 380 to 1st & 2nd D.
Court : The sale of Low’s whole, and not part, of her
undivided shares in the land to 1st & 2nd P was valid and
did not contravene S.214 of the NLC.
Ismah Ismail 10
Transfer … ctd
Limitations in Transfer
Ismah Ismail 11
Transfer … ctd
S. 214A – Control of Transfer of Estate Land
Ismah Ismail 12
Transfer … ctd
What is contiguous?
S. 214A(12) – land (either held under F.T or Q.T or a
combination thereof), is considered *contiguous
eventhough it is separated from each other only by
roads, railways or waterways.
*contiguous = bersempadanan
Ismah Ismail 13
Transfer … ctd
Why such restriction is imposed?
Ismah Ismail 14
Transfer … ctd
S.214A(4) Form to be used
If the proprietor or co-proprietor wish to transfer,
he/they shall together with the person/ persons to
whom the land is to be transferred jointly submit an
application to the Secretary of the Estate Land Board
in Form 14D.
Ismah Ismail 15
Transfer … ctd
Kumpulan Sua Betong Sdn Bhd v Dataran Segar
Sdn Bhd (1992) 1 CLJ 150
Ismah Ismail 16
Transfer … ctd
Court : S. 214A is couched in mandatory terms, non-
compliance with which would be fatal to the transfer.
If it can be proved by evidence that the land is a
portion of the Lukut Estate, then the transfer of the
land constitutes an offence under s. 214A(10A)(a).
Ismah Ismail 17
Transfer … ctd
Kumpulan Sua Betong Sdn Bhd v Ezan Sdn Bhd & Anor
(1993) 3 CLJ 337
Court :
Ismah Ismail 19
Transfer … ctd
Qn – Does SPA entered into between the parties for the sale
of an estate land without first obtaining approval from ELB
considered as invalid?
Ismah Ismail 20
Transfer … ctd
*Gula Perak Bhd v Datuk Lim Sue Beng & Other
Appeals [2019] 1 CLJ 153
Ismah Ismail 21
Transfer … ctd
Gula Perak Bhd
FC : S.214A(1) of the NLC does not prohibit the
making of a conditional or contingent agreement to
sell an estate land which has an express term
incorporated in that the intended sale is subject to the
parties obtaining the approval of the Board. The
prohibition under the said section is merely against an
act of transfer, conveyance or disposal of estate land
without the approval of the Board. The SPA being a
conditional or contingent agreement is therefore not
illegal for non-compliance with the provisions of the
said section.
Ismah Ismail 22
PROCESS & PROCEDURE OF TRANSFER
a. S. 206(1)(a) & S.207 – every dealing shall be
effected in a proper instrument (forms)
Ismah Ismail 24
Process & Procedure … ctd
g. S. 215(3) – upon registration, the transferee shall
take over
Lease, charge or other registered interest
existing at the time of registration of transfer, if
any;
Tenancy exempt from registration, if any and
endorsed;
Whatever matters appear in the register
document of title.
Ismah Ismail 25
Process & Procedure … ctd
Qn – When does registration of a title take effect?
Ismah Ismail 26
Process & Procedure … ctd
Qn - What is the position of parties under contract of
sale pending registration of transfer ?
Ismah Ismail 29
Lease … ctd
Once registered, a lease creates a legal interest in
the land
Ismah Ismail 30
Lease … ctd
Lease Under Common Law
Ismah Ismail 31
Lease … ctd
Elements of Lease Under Common Law
Ismah Ismail 32
Lease … ctd
Power to Lease under NLC
S. 221(1) – proprietor of any alienated land can
grant a lease
o Wholly; or
o partly
Ismah Ismail 33
Lease … ctd
Term of Lease
Ismah Ismail 34
Lease … ctd
Power of lessee to sub-lease
Ismah Ismail 35
Lease … ctd
Lease and its limitation
Ismah Ismail 37
Lease … ctd
What if Lease is not registered?
Ismah Ismail 39
Lease … ctd
Margaret Chua v Ho Swee Kiew & Ors
(1961) 1 MLJ 173
Ismah Ismail 40
Lease … ctd
Ong Heng Hwa Realty Sdn Bhd v Teoh Chai Siok
(1977) 1 MLJ 124
Ismah Ismail 43
THANK YOU
FOR YOUR ATTENTION
Ismah Ismail 44