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UNIT 2
DISPOSAL OF LAND BY ALIENATION
OBJECTIVES

General Objective To understand the concepts of alienation of land under the National Land Code 1965 and matters related to it. Specific Objectives At the end of the unit you will be able to: define disposal and alienation of land. identify the class of land that can be alienated. recall the persons and bodies to whom land may be alienated. list the matters that are determined by the State Authority on the approval of land alienation. describe planned and unplanned alienation. differenciate final and qualified title. describe Register and Issue Documents Of Title. summarize the process of application of land. list the items of land revenue payable on approval explain the rights of proprietor recall the situations where alienated land may revert to state land. describe categories, expressed conditions, implied conditions and restrictions in interest. identify what may be varied on the document of title.

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INPUT

Initially, all land belongs to the State. Then the State may dispose the land by alienation or by other methods such as temporary occupation of land and reservation of land which will be discussed in details in the next unit.

2.1

DEFINITIONS OF DISPOSAL AND ALIENATION Disposal means any disposal of land made by the State Authority in the exercise of any of the powers conferred by section 42 or of any of the corresponding powers conferred by any previous land law. (NLC Sec.5) Alienate means to dispose of State Land in perpetuity or for a term of years, in consideration of the payment of rent, and otherwise in accordance with the provision of section 76, or when used in relation to the period before the commencement of this Act, to dispose of State land in perpetuity or for a term of years under a previous land law (not being a law relating to mining) (NLC Sec. 5) Section 76 elaborates the meaning of alienation and outlines the conditions where land may be disposed in perpetuity. A full documentation of section 76 is given below:

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The alienation of State land under this Act shall consists of its disposal by State Authority (a) for a term not exceeding ninety-nine years; (aa) in perpetuity (i) where the Federal Government requires the State Authority to cause a grant in perpetuity to be made to the Federal Government or to a public authority; (ii) where the State Authority is satisfied that the land is to be used for a public purposes; or (iii) where the State Authority is satisfied that there are special circumstances which render it appropriate to do so; (b) in consideration of the payment of an annual rent; (c) in consideration, unless the State Authority thinks fit to exempt therefrom in any particular case, of the payment of a premium; (d) subject, unless the State Authority otherwise directs pursuant to subsection (5) of Section 52, to a category of land use; and (e) subject to such conditions and restrictions in interest as may be imposed by the State Authority under, or are applicable thereto by virtue of any provision of the NLC.

2.2

CLASS OF LAND THAT CAN BE ALIENATED Only state land can be alienated. Any part of the foreshore and seabed may only be given a lease for a period of not more than 99 years.

2.3

PERSONS AND BODIES TO WHOM LAND MAY BE ALIENATED Persons and bodies to whom land may be disposed according to Sec. 43 NLC: Natural persons other than minors. Corporations having power under their constitution to hold land Sovereigns, governments, organizations and other persons authorised to hold land under the provisions of the Diplomatic and Consular Privileges Ordinance, 1957. Bodies expressly empowered to hold land under any other written law Only to the Malays as for Malay Reservation Land, Only to the indigenous people as for Indigenous Reservation Land, Only to the Kelantanese as for Kelantan State Land.

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2.4

MATTERS RELATING TO LAND THAT ARE DETERMINED BY THE STATE AUTHORITY UPON APPROVAL

The followings are to be determined by the State Authority at the time of approval: Area of land approved, Period/duration, Form of final title, Form of qualified title Rent, rates determined according to sec. 80 (1), Premium, if any, Category of land use, and Express conditions and restrictions in interests, if any.

2.5

METHODS OF LAND ALIENATION There are two ways that the state land may be alienated, namely planned and unplanned alienation. Planned alienation refers to the case where an area of land is selected by the Land Office and after assessing the suitability, applications are then invited. Then the selected applicants are required to submit the formal applications. Planned alienation is suitable for both large and small areas of land. It has been recommended by the National Land Council in 1958. Planned alienation for large areas of land is normally done under the Land Group Settlement Areas Act (GSA), 1960. On the other hand, unplanned alienation refers to application of land made by the person or body on his or its own initiative.

Two situations can thus be seen, i.e., one where applications are made in response to a call made by the Land Office and the other where application is made by the person or body on his or its own initiative.

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Activity 2a

TEST YOUR UNDERSTANDING BEFORE YOU CONTINUE WITH THE NEXT INPUT! Circle the correct answer. 2.1 Section ______ of the NLC gives the power to the State Authority to dispose state land. A) 5 B) 42 C) 76 D) 142 Alienation of land means the disposal of ____________ in perpetuity or for a term of years subject to section 76 of the NLC or any previous land law. A) state land B) mining land C) reserved land D) reserved forest land Under sec. 43, NLC, a person of __________years old and above may own land. A) 8 B) 18 C) 21 D) 28 From the list below, choose the items that are determined by the State Authority upon the approval of land application. I) rent II) survey fee III) area of land approved IV) premium, if applicable A) B) 2.5 I and III II and IV C) D) I, II and IV I, III and IV the

2.2

2.3

2.4

Planned alienation refers to a procedure whereby _________________________ invites application for a chosen lot of land. A) Registrar B) Land Office C) Executive Council

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D)

Land Administrator

Feedback to Activity 2a

2.1 2.2 2.3 2.4 2.5

B A B D B I hope you didnt crack your head to answer those questions..

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INPUT

2.6

FORMS OF TITLE FINAL AND QUALIFIED TITLE A land title serves as an evidence of ownership and according to section 77(1) it can be in the form of final title and qualified title. Final title is given to land that has been officially surveyed so that its boundaries and areas have been ascertained in accordance with the terms of the Code or under a previous land law. Qualified title is given to land that is not precisely surveyed. This means that the boundaries shown on the document of title are only provisional and may be subjected to change by the official survey of the land. After the official survey has been completed, a final title may be issued. The purpose of qualified title is to enable the person to whom land has been approved under section 79 to obtain title of the land before it is surveyed. It gives not only the right of occupation but also indefeasibility of title to the holder, thus recognizing that he has a statutory estate subject to section 176. This means that it is capable of being transferred, leased or charged, it will in every way confer the same advantages as the final title with the sole exception that the land cannot be further sub-divided, partitioned or amalgamated until formal survey has been completed. Any building on such land may also not be sub-divided. Final title can be either Registry or Land Office title while Qualified title can be either Qualified title corresponding to Registry title and Qualified title corresponding to Land Office title. Registry titles are registered by the Registrar of Titles in the Registry of the State (one in each state-mostly in the state capital and land office title are registered by the Land Administrator at the Land Office of the district (one in each district). Registry titles are issued in respect of towns or village land, any lot of country land not exceeding ten acres and any part of the foreshore and seabed. Land Office titles are issued in respect of any lot of country land not exceeding ten acres in area. However, the State Authority may if it thinks fit, on approving the alienation of any country land, direct it to be held under Registry title even though the area is less than ten acres.
A final title as a registry title is either a state grant or a state lease dependent on the terms of alienation. However, title to any part of the foreshore or seabed may only be by way of State lease as these may only be alienated for a period not exceeding 99 years. A final title as Land Office title is either a mukim grant or a mukim lease depending on the terms of alienation.

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2.7

REGISTER AND ISSUE DOCUMENT OF TITLE Under section 85 NLC, for a final title, two documents are prepared by the Registrar namely the register document of title (RDT) and the issue document of title (IDT) which is a duplicate of RDT. There should be only one lot in each title. The RDT is bound up in the appropriate Register or book at the Registry or Land Office whilst the IDT is issued to the proprietor. The register and issue document of title contain particulars of the lot and include a plan of the land. Upon registration, an issue document of title will be prepared and issued to the proprietor. All items of land revenue outstanding must be settled before the title is delivered.
Once the land has been alienated to a proprietor the title is said to be indefeasible. Indefeasibility implicitly means that the State guarantees that the registered proprietors title is unimpeachable, unchallengeable and unquestionable. Only fraud, forgery, mistake or misrepresentation, insufficient or void instrumentation and unlawful acquisition work to defeat the title.

2.8

THE PROCESS OF UNPLANNED ALIENATION The procedures of unplanned alienation can be found in the Manual for Land Administration 1980. These procedures can be summarized as follows: i. The applicant submits the application using the form specified by the Land Office together with the plan and particulars of the said land and fees payable. ii. The Land Office will refer the application to the relevant departments for their comments. iii. The Land Administrator will forward the application to the State Authority with the recommendation for or against the approval of the application. iv. The Executive Council will decide on the approval of the application and the applicant will be informed of this decision. v. If the application is approved, the applicant will have to pay all the fees specified. vi. The subject land will be surveyed either by the Survey and Mapping Department or a licensed surveyor. vii. A registered title will be issued to the proprietor.

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Activity 2b

TEST YOUR UNDERSTANDING BEFORE YOU CONTINUE WITH THE NEXT INPUT! 2.6 Complete the following diagrams on Final title and Qualified title.

Final Title

Registry Title (RT)

(a)

(b)

State Lease (SL)

(c)

Mukim Lease

Qualified Title(QT)

QT corresponding to RT

(d)

(e)

QT corres. to SL

(f)

QT corres. to ML

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2.7

Circle the correct answer.

a) The plan that is contained in the final title shows the precise measurement of the _________ and boundaries of the approved land, whereas the plan in qualified title is only _________________. A) area, provisional B) volume, provisional C) frontage, an estimation D) circumference, temporary b) Compared to the owner of a final title, the owner of a qualified title does not enjoy I) the right to transfer the land II) the right to sub-divide any building on the land III) the right to surrender the land to the State Authority IV) the right to further sub-divide, partition or amalgamate the land A) B) I and II II and IV C) I, II, III D) II, III, IV

Decide whether the following statements are true(T) or false (F) 2.8 2.9 2.10 2.11 Issue Document Title is a duplicate of Register Document Title. ______

Registered Document Title is kept in the Registry or Land Office. ______ A registered title is indefeasible but it is not absolute. ______

On receiving land application, the Land Office will refer the matter to relevant departments for the decision. ______ If the application is approved, only the Survey and Mapping Department can survey the land. ______

2.12

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Feedback to Activity 2b

2.6

(a) (b)

Land Office Title Grant Mukim Grant (d) Qualified title corresponding to Land Office Title (e) Qualified title corresponding to Grant (f) Qualified title corresponding to Mukim Grant A B

2.7

(a) (b) T T T F F

2.8 2.9 2.10 2.11 2.12

You seem to be doing well so farkeep up the good work!! Now, lets continue with the next input

INPUT

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2.9 LAND REVENUES PAYABLE ON APPROVAL The following land revenues are payable at the time of approval are: first years rent, the first years rent must be paid on the approval of alienation and is calculated based on the approved area of land. The Registrar shall prepare, register and issue a qualified title in respect of the land upon payment of all fees. The alienation of state land shall take effect upon the registration of a document of title. The rent shall be payable as from the beginning of the calendar year in which the land is alienated or, if it is alienated after the end of September in that year, as from the beginning of the following calendar year. premium, if any, survey fees, cost of boundary marks, and fees for preparation and registration of title.

2.10

THE RIGHTS OF PROPRIETORS The proprietor enjoys the following benefits on the land: the right to transfer, lease, give tenancies, charge and lien and give easements on the land, the right to sub-divide, partition or amalgamate the land (true to final title holder only), the right to sub-divide any building on the land (true to final title holder only), the rights to surrender the whole or some parts the alienated land to the state, the rights to alter the land use category, rescind or alter any express condition or restriction in interest endorsed on the document of title, the right to hand down the land ownership to the successors upon his death by virtue of a will, the exclusive use and enjoyment of the air space above the land and land below the surface, as is reasonably necessary to the lawful use and enjoyment of the land, the right to support the land in its natural state by any adjacent land, and all other natural rights subsisting thereof, and rights of access to foreshore, river or public access.

2.11

HOW ALIENATED LAND MAY BE REVERTED TO STATE LAND Alienated land may revert to and vest in the State Authority under the following circumstances:

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upon the expiry of the term specified in the document of title, upon the forfeiture of the land by land administrator on the grounds of nonpayment of rent or breach of condition, upon the death of a proprietor without successors, upon abandonment of title by proprietors ( ie. the proprietor is not in effective occupation of the land and has not for the past seven years, done any act or thing evidencing his title thereto) where the shore line or the bed of any river advances so as to encroach on the alienated land, where the proprietor surrenders the whole or some parts of the land the state authority.

Activity 2c

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Fill in the blanks with the most suitable answer. 2.13 If the approval for land application is given after the end of __________, the first years rent must be paid at the beginning of the following calendar year. Survey fee is payable to the Registry or Land Office if the land is surveyed by the____________________________. If the land is surveyed by a licensed surveyor then the fee is payable to the licensed surveyor. The registered proprietor has the right to surrender his land, either entirely or partly to the __________________. The proprietor also has the right to __________________, river or public access. An alienated land may revert to State land if the proprietor does not occupy or fail to do any act or thing to the land for the past _______ years.

2.14

2.15

2.16 2.17

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Feedback to Activity 2c

2.13 2.14 2.15 2.16 2.17

September Survey and Mapping Department State Authority foreshore 7

Hope you are doing fine with the activities theres only one more input to go lets keep on moving

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INPUT

2.12

CATEGORIES, EXPRESSED CONDITIONS, IMPLIED CONDITIONS AND RESTRICTIONS IN INTEREST The National Land Code 1965 has allocated four items for the purposes of controlling the alienated land from being used for other purposes than what it was determined upon approval. The items are categories of land use, expressed conditions, implied conditions and restrictions in interests.

2.12.1 Categories The categories of land use for any alienated land can either be one of the followings: a) Agriculture, or b) Building, or c) Industry For land that was alienated before NLC, sometimes there was no category of land use being determined because it was not compulsory to do so under the previous land law. With the enforcement of NLC, such land that falls under the class of country and town or village land that are held under Land Office Title are to be used as agriculture land, whereas town or village land that are held under the Registry Title must not be used for agriculture or industry. Any land that has been determined the land use before NLC will continue having the same use with the enforcement of NLC.
In some cases where the application of land was approved before NLC but alienated under NLC with unspecified land use, for country land, the use must be solely for agriculture. For village or town land the use must be for other than agriculture and industry when NLC came into enforcement.

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2.12.2 Expressed Conditions Expressed conditions are restrictions or conditions imposed by the State Authority in order to control the proper usage of land and are written on the document of title. Examples of expressed conditions are: (a) The alienated land shall only be constructed with a single dwelling, (b) The alienated land shall not be planted with or be allowed to grow with rubber trees, (c) Paddy All land is subjected to the expressed conditions that are endorsed on the document of title. Any breach on the expressed conditions will result in the ownership of land to be terminated. Expressed conditions may be amended or rescind on application by the proprietor. 2.12.3 Implied Conditions Implied conditions are also restrictions on land use. The difference between implied conditions and expressed conditions are that implied conditions: are stated on the document of title, they are only written in the law, are not imposed by the State Authority but are merely the requirements of law, cannot be amended or nullify except by amending or nullifying the law. Any breach on the implied conditions will also result in the ownership of land be terminated.
To find out about the implied conditions on various categories of land use, please refer to sections 114 to 119 of the NLC

2.12.4 Restrictions In Interest

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Restrictions in interests are restrictions or limitations on the rights of proprietors that are imposed in order to guard the interests in land. For example: The alienated land cannot be transferred, given tenancy or charged except with a written consent from the State Authority. All land is subjected to the restrictions of interests that are stated in the document of title. Restrictions in interests may be imposed, amended or rescinded.

Activity 2e

Time for another activity!

2.18

Identify the items that may be accomplished by a land proprietor at the Registry or Land Title Office by putting a at the space provided. a) Amending land use category _____ b) Imposing land use category c) Rescinding expressed conditions _____ d) Amending expressed conditions _____ e) Imposing new expressed conditions f) Rescinding implied conditions g) Amending implied conditions h) Imposing implied conditions i) Rescinding restrictions in interests _____ _____ _____ _____ _____ _____

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j) Amending restrictions in interests k) Imposing restrictions in interests _____

_____

l) Rescinding such term as paddy, rubber or other similar terms ____

Feedback to Activity 2e

2.18

a) b) c) d) e) f) g) h) i) k) l) m)

j)

Congratulations !!! you have finished with all the inputs and activities. Now theres only one more hurdle to gothe self-assessment!!! Lets have a look at it now!!!

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KEY FACTS 1. The State Authority may alienate state land in perpetuity or for a period not exceeding 99 years. 2. There are two methods of alienation namely planned and unplanned alienation. 3. The persons and bodies to whom land may be alienated is listed under Section 43 of the NLC 1965 4. There are two forms of titles namely final and qualified title. These titles can be either Registry or Land Office Title. 5. Final and qualified title holders enjoy the same rights except that qualified title holder cannot sub-divide, partition or amalgamate the land and sub-divide any building on the land. 6. To prevent misuse of the alienated land, the NLC has imposed categories of land use, expressed conditions, implied conditions and restrictions in interests on the alienated land (where applicable).

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Self-Assessment 2

You are approaching success. Try all the questions in this self-assessment section and check your answers with those given in the Feedback on Self-Assessment given on the next page. If you face any problems, discuss it with your lecturer. Good luck. 1. 2. Briefly explain the process of unplanned alienation. Briefly describe categories, expressed conditions, implied conditions and restrictions in interest.

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Feedback To Self-Assessment 2

Have you tried the questions????? If YES, check your answers now. 1. The process of unplanned alienation can be summarized as follows: i. The applicant submits the application using the form specified by the Land Office together with the plan and particulars of the said land and fees payable. ii. The Land Office will refer the application to the relevant departments for their comments. iii. The Land Administrator will forward the application to the State Authority with the recommendation for or against the approval of the application. iv. The Executive Council will decide on the approval of the application and the applicant will be informed of this decision. v. If the application is approved, the applicant will have to pay all the fees specified. vi. The subject land will be surveyed either by the Survey and Mapping Department or a licensed surveyor. vii. A registered title will be issued to the proprietor. a) Categories: Category of land is an item imposed by the State Authority to control the use of alienated land. The categories of land use for any alienated land can either be one of the followings: a) Agriculture, or b) Building, or c) Industry b) Expressed conditions:

2.

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Expressed conditions are restrictions or conditions imposed by the State Authority in order to control the proper usage of land and are written on the document of title. Examples of expressed conditions are: a) The alienated land shall only be constructed with a single dwelling, b) The alienated land shall not be planted with or be allowed to grow with rubber trees, c) Paddy All land is subject to the expressed conditions that are endorsed on the document of title. c) Implied conditions: Implied conditions are also restrictions on land use. The difference between implied conditions and expressed conditions are that implied conditions: are stated on the document of title, they are only written in the law, are not imposed by the State Authority but are merely the requirements of law, cannot be amended or nullify except by amending or nullifying the law d) Restrictions in interest: Restrictions in interests are restrictions or limitations on the rights of proprietors that are imposed in order to guard the interests in land.