LAND DEVELOPMENT LAW

Tutorial 1

1. What is the law governing land in Malaysia?

The Malaysian National Land Code 1965 (NLC 1965) is governing
land in Malaysia.

2. Malaysia land law is modelled based on?

Malaysia land law is modelled based on the Australian Torrens
System.

3. Explain the following principles of Torrens system:

a. Mirror principle
In Torrens system, registration is everything. The registration
will accurately and completely reflect the current facts about a person’s title
such as the name of the owner, the land which has been alienated, the area,
the location, the boundary limit and other material facts. This means that the
description of lands and proof of ownership would appear on certifying title
in a written instrument.

b. Curtain principle
Curtain principle has reduced the trouble and expenses to
investigate the history of ownership and the validity of the title. This is
because the Certificate of Title contains all the information about the title. A
potential land buyer may only need to look at the register to get the
information on the land he is interested in without checking with other
documents.

c. Shield principle
Shield principle provides for compensation of loss of rights if
there are errors made by the Registrar of Titles. It protects the rights of land
owners by introducing the term indefeasibility of title where the registered
holder is immune from attack by adverse claims affecting the same land.
4. Definition of land according to NLC.
According to Section 5 of NLC 1965, land is being defined as
following:
a. That surface of the earth and all substances forming that surface；
b. The earth below the surface and all substances therin；
c. All vegetation and other natural products, whether or not requiring
periodical application of labour to their production, and whether on or below
the surface;
d. All things attached to the earth or permanently fastened to any thing attached
to the earth, whether on or below the surface; and
e. Land covered by water.

5. Based on your answer on Tutorial 1 Q2&3, in your opinion,

what is your understanding about the advantages of the
Torrens system as a basis of our Malaysia NLC.
In my opinion, the advantages of Torrens system as a basis of our
Malaysia NLC is it helps to combat the problems of uncertainty, complexity
and costs. For example, people who carried out the clearing task on a waste
land were entitled to occupy it in the past and this will cause arguments due
to the uncertainty of the boundary of land. However, with this Torrens
system introduced in Malaysia NLC, the State Authority is the one to
alienate the land and all the description of land is certified, hence it will be
more efficient and simple when transaction of ownership is carried out.
Furthermore, it is easier to trace the ownership of land because all the
necessary information is stated in the Certificate of Title and no further
investigation needed in the buy and sell process. Lastly, it protects the rights
of owner where a register land holdings maintained by the State ensures
indefeasible title to those included in the register.
6. Explain immediate indefeasibility and deferred indefeasibility.
Immediate indefeasibility means that an immediate buyer of title will
have indefeasible title notwithstanding that the title was obtained pursuant to
vitation circumstances.

Deferred indefeasibility means that the subsequent buyers of land

acquired by means of fraud and/or forgery, were they found to be acting in
good faith and have purchased the land for valuable consideration, would be
afforded an indefeasible title to the land.

7. Analyse the rights of the State Authority.

The State Authority has the rights to alienate state land for a term of
years not exceeding 90 years or in perpetuity pursuant to the provisions of
Section76 of NLC.
The State can reserve state land and grant leases of reserve land.
Moreover, the State is to issue temporary occupation licenses in respect to state
land, reserve land and mining land. The State gives the permit for extraction
and removal of rock material from any land other than reserved forest. The state
also permits the use of airspace on or above state land or reserved land.