week 4 Dealings Under NLC

INTRODUCTION TO PROPERTY LAW

2.0 NATIONAL LAND CODE 1965 1
(DEALINGS)

MIMI AMIRA BINTI AMRAN

INTRODUCTION 2

The NLC 1965 require certain matter to be
Registered:-

Dealings in alienated land

Interest in alienated land

WHAT ARE DEALINGS 3

There are four (4 types of dealings of any alienated
land recognized by the Code :-

Transfers Leases and Charges and Easements
tenancies liens

However not all the above dealings require to be registered.

4

Dealings that require Dealings that do not require
registration are registrations are
Transfers Tenancies

Leases Liens

Charges and easements

WHAT IS ‘INTEREST IN ALIENATED 5
LAND’?

Includes:-

A lease and sublease of alienated
land

A charges of alienated land

An easement

The above interests are required to be registered by the NLC to become effective.
Once registered, the party or person who accepts the lease, sublease,

charge or easement will have a registered interest over the alienated land.

TRANSFER 6

Who are the parties to transfer:- All persons or
body in sec. 43
TRANSFEROR • Party who transfer the land

TRANSFEREE • Party who accepts the tansfer

a) What may be transferred – sec 214(1) 7

The whole but not a part only, of any alienated land
The whole but not a part only of any undivided share, or any
alienated land
Any lease
Any charges

Tenancy exempt from registration

b) Limitation in Transfer 8

Sec. 214(2) – Power to Sec. 214(3)
transfer are subject to:- Prohibits transfer of lease or

Any other written law a charge to 2 or more
Restriction in interest persons or bodies as
Consent from lessee trustees or representatives

or charge

c) Sec. 214A – Control of transfer of 9
estate land

What is estate land? – sec. 214A(1)

“agricultural Under one Which area is Land
land” title or more more than 40 constituting
the area are
hectares contiguous/joi
ning (the 40
hectares must
be adjoining

10

Estate land cannot be transferred or disposed of
to 2 or more persons unless consent/approval is

obtained from the Estate Land Board
Case : Kumpulan Sua Betong

d) General rule on transfer 11

Sec. 206(1)(a) Every dealings shall be effected in a proper instrument
Sec. 215(1) (forms)
Sec. 206(1)(b)
Sec 215(2) The relevant instrument for transfer of any alienated land
Sec. 304(1) is Form 14A

No instrument shall be effective to operate as a transfer of
a title until it is registered

Upon registration, the title of transferor in the land shall
pass and vest in the transferee

Registration of any instrument shall be effected by the
registrar

Case : Jasbir Kaur

..continue 12

Sec. 304(2) The Registrar shall register the transfer by making a
Sec. 215(3) memorial on the RDT signs and seals on the instrument

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

LEASE 13

A person who A person who Lease is one
lease the accepts the of the
land is called lease is dealings
a lessor. called lessee. which is
1. capable of
2. being
3. registered.

..continue 14

By virtue of Sec. 5 – “lease” simply means “a registered
lease or sublease of an alienated land”.

Thus, lease must be registered to be effective.

Once registered, a lease creates a legal interest in the
land

- enforceable against third party
- enjoys protection within the terms of legislation

a) Lease under common law (CL) 15

• Need not be registered.
• Legal interest created upon signing of agreement.

b) Elements of a lease under CL 16

i. Lessee has an exclusive possession
- lessee can exclude all person including
the lessor.
- Lessor will not deprive lessee of enjoyment
of the land

ii. Lease is of a definite period.
iii. Inconsideration of payment of rent.

c) Erington v. Erington & Woods 17

Principles to establish:-
i. Not only that exclusive possession had been granted.
ii. But also the intention to create the relationship of

landlord and tenant.
iii. And thereby to create an interest in the land.

Case Mohammed Mustaffa v. Kandasami
if there is no possession the transaction cannot be
a lease.

d) Power to lease 18

Sec. 221(1) – proprietor of any alienated land can
grant a lease

i. wholly or
ii. partly

e) Term of lease 19

Sec. 221(2) every lease must be for a term exceeding
3 years.

Maximum term to grant lease – Sec. 221(3)
i. Lease of the whole piece of land – 99 years.
ii. Lease of part the land – 30 years.

f) Lease and its limitation 20

Sec. 225(1) may be subject to
i. any other written law
ii. Restriction in interest

Sec. 225(2) – lease cannot be granted to 2 or more
persons or bodies as trustees or representative.

Sec. 226 – consent from lessee or charge be obtained
before leased can be created.

g) Instrument of lease – Sec. 221(4) 21

Every lease shall be in Form 15A

h) Effect of registration – Sec. 227(1) 22

- A lease will have legal effect upon registration.
- Interest of lease shall vest in him upon such registration.

i) What if lease not registered? 23

• General Sec 206(2) – no instrument of dealing shall operate to effect
any interest unless it registered.

• Sec 206(3) – however the requirement in Sec 206(1) shall not effect
any contractual operation of any transaction of alienated land.

• Even though the instrument is not registered, the contract to lease
entered between the lessor and lesser is still valid.

• Thus unregistered lease is void as a lease but the contract is valid as
an agreement for a lease.

• The contract is enforceable under the law of contract.

Margaret Chua v. Ho Swee Kiew
Ong Heng Hwa Realty Sdn Bhd

j) Types of Tenancy 24

Periodic Tenancy
Tenancy will
Tenancy at sufferance
Tenancy by estoppel

Tenancy coupled with Equity

CHARGES AND LIENS - S 241, 242, 25
243, 281 [LIEN]

• A charge is 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.

• The proprietor of the land is known as the `chargor’
or borrower and the person to whom the property is
conveyed or in whose favour the charge has been
effected is called the `chargee’ (lender).

..continue 26

• A lien is a dealing which gives rise to a non-registrable
interest in the land, lease or undivided share therein.

• A lien may be created over the land or undivided share
therein or lease there of by deposit of the issue
document of title or duplicate lease with the lender
who will then apply for the entry of a lien-holder’s
caveat over the said land.

..continue 27

The following can be charged under the NLC:

• The whole, but not a part only, of any alienated land.
• The whole, but not part only, of any undivided share

in alienated land.
• Any lease of alienated land.

..continue 28

The powers of charging as given in S 241, NLC, are
subject to:

• Any prohibition or limitation imposed by the code or
any written law for the time being in force.

• Any restriction in interest to which the land in
question is for the time being subject, and

• In relation to leases the provisions thereof, whether
express or implied.

..continue 29

In every charge, there shall be implied on the part of the
chargor to do the following:

• To pay the sums due to the chargee.
• To pay rents, rates, taxes and other outgoings in respect

of the land to the relevant authorities.
• To comply with the conditions, express or implied to

which the land is subject, and
• In the case of a lease, to observe and comply with the

terms and conditions of the lease.

..continue 30

Form 16D – Notice on breach of conditions or default:

• Specifying the breach in question.
• Requiring the chargor to remedy within one month

or such other alternative period as may be specified
in the charge.
• Warning the chargor that if the notice is not
complied with the chargee will take proceedings to
obtain an order of sale.

EASEMENT 31

Section 282(1) NLC defines easement as

i. any right granted by one proprietor to another, in his
capacity as such and for the beneficial enjoyment of his
land.

ii. The land for the benefit of which easement is granted is
called the dominant land and the land of the proprietor by
whom the easement is granted is called the servient land.

..continue 32

Rights of easement are either positive or negative in nature.
Sec. 283(1) NLC State that rights capable of being granted as
easement are:

i. Any right to do something in, over or upon the servient
land e.g. drains, small road, installation of pipes, pond,
fence, pool, wall etc.

ii. Any right that something should not be done e.g.
depositing rubbish.

..continue 33

Sec 283 (2) NLC states that the said rights do not include:

• Any right to take anything from the servient land or
• Any right to the exclusive possession of any part there

of

However, the placing and maintaining in or upon the
servient land any installation or other works for the
benefit of the dominant land is permitted.

..continue 34

An easement can be described as a privilege without
a profit,
i.e it is a right attached to one particular piece of
land which allows the owner of that land (the
dominant owner) in a particular manner, as by
walking over or restrict its user by that person to a
particular extent, but which does not allow him to
take any part of its natural produce or its soil.

..continue 35

Every easement must possess the following four
characteristics:
• There must be a dominant land and a servient land.
• The right granted must benefit or accommodate the

dominant land.
• The proprietors of the dominant land and the servient

land must be different persons.
• The right must be capable of forming the subject matter

of a grant.

Form – 17A, 17B, 17C

36

THANK YOU