Dealings and registration

DEALINGS AND REGISTRATION

Prepared by:
Puan Hamsiah Omar

Introduction

The NLC 1965 require certain matter to be
Registered :-

(d) dealings in alienated land
(e) Interest in alienated land

What are dealings?

There are four (4) types of dealings of any
alienated land recognized by the Code:-
 Transfers;
 Leases and tenancies;
 Charges and liens ; and
 Easements.

However not all the above dealings require
to be registered.

Dealings that require registration are:-

 Transfers;
 Leases
 Charges and easements

Dealings that do not require
registrations are:

 Tenancies; and
 Liens.

What is “interest in alienated land”?

Includes:-
 a lease and sublease of alienated land;
 A charge of alienated land; and
 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

 Who are the parties to transfer

All persons or bodies in sec. 43
Transferor – party who transfer the land;
Transferee- party who accepts the transfer.

What may be transferred – sec. 214(1)

 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 charge;
 Tenancy exempt from registration

Limitation in Transfer

a. sec. 214(2) – power to transfer are subject
to:-
 Any other written law;
 Restriction in interest;
 Consent from lessee or chargee;

…continue

b. sec. 214(3) – prohibits transfer of lease or a
charge to 2 or more persons or bodies as
trustees or representatives.

Section 214A – control of transfer of
estate land

What is estate land ? – sec 214A(1)
 “agricultural land”
 Under one title or more
 Which area is more than 40 hectares
 Land constituting the area are
contiguous/joining (the 40 hectares must be
adjoining)

…continue

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.

Illustration – Transfer of alienated land

Ali is a registered proprietor of a piece of land
has agreed to transfer his land to Siti. Ali would
like to know his duty and obligation to make the
transfer effective.

General rule on transfer

a. sec. 206(1)(a) – every dealing shall be effected in a
proper instrument (forms)
b. Sec. 215(1) – the relevant instrument for transfer of
any alienated land is Form 14A
c. Sec. 206(1)(b) – no instrument shall be effective to
operate as a transfer of a title until it is registered.
d. Sec. 215(2) – upon registration, the title of trnsferor
(Ali) in the land shall pass and vest in the
transferee (Siti)

…continue

e. sec. 304(1) – registration of any instrument
shall be effected by the Registrar.
f. sec. 304(2) – the Registrar shall register the
transfer by making a memorial on the RDT,
signs and seals on the instrument.
Case: Jasbir Kaur

..continue

g. sec. 215(3) – upon registration, the transferee (Siti)
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

A person who lease the land is called a lessor
while the person who accepts the lease is
called the lessee.

Lease is one of the dealings which is capable
of being registered.

..continue

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.

…continue

 Once registered. A lease creates a legal
interest in the land

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

Lease under common law

 Need not be registered
 Legal interest created upon signing of
agreement

Elements of a lease under CL

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

Erington v. Erington & Woods

Principles to establish:-
ii. Not only that exclusive possession had been
granted;
iii. But also the intention to create the relationship of
landlord and tenant;
iv. And thereby to create an interest in the land.
Case Mohamed Mustaffa v. Kandasami
if there is no possession the transaction cannot be
a lease

… continue - element

b. Lease is of a definite period
c. Inconsideration of payment of rent.

Power to lease

Sec. 221(1) – proprietor of any alienated land
can grant a lease
 Wholly; or
 partly

Term of lease

Sec. 221(2) every lease must be for a term
exceeding 3 years.
Maximum term to grant lease – sec 221(3)
d. lease of the whole piece of land – 99 years.
e. Lease of part the land – 30 years.

Lease and its limitation.

a. Sec 225(1) may be subject to
 any other written law;
 restriction in interest.
d. Sec 225(2)- lease cannot be granted to 2 or
more persons or bodies as trustees or
representative.
e. Sec 226 – consent from lessee or chargee
be obtained before leased can be created.

Instrument of lease – sec 221(4)

 Every lease shall be in Form 15A

Effect of registration – sec 227(1)

 a lease will have legal effect upon
registration
 Interest of lesse shall vest in him upon such
registration

What if lease not registered?

 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 affect any contractual
operation of any transaction of alienated
land.

…continue

 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 enforceble under the law of
contract

… continue

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

Tenancy Exempt From
Registration(TXR)

 Sec 213(1)

Types of Tenancy

a. Periodic Tenancy
b. Tenancy will
c. Tenancy at sufferance
d. Tenancy by estoppel
e. Tenancy coupled with Equity

Endorsement

 Sec 213 (3)

What if the tenant fails to endorse his
tenancy against the title?

 Than Kok Leong v. Low Kim Hai
 Hotel Ambassador

How endorsement made?

 Sec 316 – application for endorsement

Cancellation of endorsement – sec 318

The Registrar may cancel any endorsement
 By court order;
 Upon expiry of the tenancy;

The Registrar shall endorsement against the
cancelled endorsement note of the date of
cancellation and the reason thereof.

Dealings and registration

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Dealings and registration