C3347/UNIT1/1

UNIT 1

LAND ADMINISTRATION IN PENINSULAR

MALAYSIA BEFORE AND AFTER THE NATIONAL
LAND CODE

OBJECTIVES

General Objective

To understand various land administration systems in Peninsular Malaysia before and

after the introduction of the National Land Code 1965.

Specific Objectives

At the end of the unit you will be able to:

describe the traditional land administration system.
describe the Registration of Deeds system.
describe the Torrens System.
d and

classify the different types of land.

explain the state land administration with respect to the powers of State Authority,
State Directors and other state officers.
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INPUT

1.1 TRADITIONAL LAND ADMINISTRATION SYSTEM

In olden days, when no

documentation existed, land
ownership was based solely
on the occupation of the
land.

dead land
living land Dead land
trees or permanent crop can be found on the land. Living land to land that
belongs to someone who either occupies the land or plants something on it.
Living land country
land paddy field or wet land .
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Country land Proprietory

right in kampong land endures during occupation and afterwards as long
as it is planted with fruit trees as a proof of occupancy.

Paddy field or wet land wet land that is planted with paddy.
as long as the land is
occupied and for up to three years after its abandonment.

Farmland or upland
seasonal crops. Proprietory right of the land lasts as long as it is occupied
which normally coincides with a single season.

There can be no proprietory right in dead land

In general, this traditional reference of ownership system is a very loose one. A

person can own a land as long as he is a Muslim, willing to clear the land and

The Sultan, as the head of the state and at the top of the feudal system had some
influence on the traditional land system. Since all the land in the state belongs to
dead land
may also grant land to or seize land from anybody he pleases.

As a conclusion, we can say

that under this system, the
native people practiced a
system that is based on
traditional Malay customs
as well as the Islamic Law.
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1.2 REGISTRATION OF DEEDS

In 1880, the British introduced a land

administration system that was based
on the English Land Law. This
system is known as the Registration
of Deeds. Land ownership was based
on written or oral grant from the
government. The system necessitated
the presence of a chain of documents

The disadvantages of this system were:

1. Ownership of land was not secured by the government,
2. Registration of land dealings was not made compulsory,
3. Purchasers did not get the guarantee of ownership,
4. Land transactions were based on a chain of documents.
5. Title search that was carried out with the presence of a lawyer was costly
and slow.

1.3 THE TORRENS SYSTEM

The Torrens System was named after Sir Robert Torrens. He introduced
the system in South Australia in 1858 with the legislation of the Real
Property Act (South Australia) 1858. This system was adopted by the
Federated Malay States in 1879 with the passing of the Perak General
Land Regulations.

It was based on a State controlled system of registration of title, evidenced by

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registration but was not

effective to the land until its registration. Other characteristics that differentiate
this system from the earlier systems were:

caveats may be lodged in the register to protect unregistered interests in

the land,
Equity had no place in this system
Surveying of land was an important matter,
The Assurance Fund, established and maintained from contributions made
by proprietors was to reimburse persons who suffer loss by or through the
operation of the Act.

There were two main principles under this system namely the Mirror Principle
and The Curtain Principle.

The Mirror Principle

According to this principle the register reflects all the facts and interests of the land
such as the name of proprietor, land descriptions, area of the land and particulars of
the persons that have registered interests on the land. This principle is included in
the National Land Code under Sec. 340(1) that states:

proprietor of any land, or in whose name any lease, charge or easement is

for the time being registered, shall, subject to the following provisions of
this section, be indefeasible

The Curtain Principle

According to this principle, a potential land buyer may only need to look at the
register to get the information on the land that he is interested in without counter
checking with other documents.
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The Torrens System has a few major characteristics that are now borne in the
National Land Code.

The characteristics

1. All land belongs to the Sultan(State Authority) who has the authority to
dispose or alienate land to anybody that is deemed fit, either indefinitely or for
a certain period of time not exceeding 99 years.
2. All dealings with land must be using statutory forms and be registered with
the State Authority.
3. Registered proprietors are given indefeasible title that can only be disputed
under certain circumstances.
4. Qualified titles may be issued to enable a person or a body to enter into any
dealings of approved but unsurveyed land. This title may also be issued for
any partitioned land that has been approved before it is surveyed.
5. Strata titles may be issued to a purchaser of a unit in a multi storey building
that allows him to hold a separate title to the unit from the developer of the
building.
6. A registered proprietor of land may lease his land for a period of up to 99
years in case of whole land or up to 30 years if it involves only part of the
land. He can also by written or oral agreement gives rent on the land for a
period not exceeding 3 years.
7. A set of procedures must be followed when applications for sub-division,
partition or amalgamation of land are made.
8. Alienated land shall revert to and vest with the State Authority when the
proprietor fails continuously to pay the quit rent.
9. Easements are created expressly and must be registered. Creation of easement
by prescription is no longer allowed.
10. A system of caveats protects any registrable interests and also registrable
transactions before registration.
11. Adverse possession of land such as through illegal occupation will not nullify
the registered proprietorship on the land.
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INPUT

1.4 INTRODUCTION TO THE NATIONAL LAND CODE 1965 (NLC 1965)

Before the legislation of the National Land Code 1965, each state in Peninsular
Malaysia has its own land law. This is shown in the following table:

Table 1 : Land Laws that were used in different states of Peninsular Malaysia
before NLC 1965

STATE LAW
Pahang, Negeri Sembilan, Selangor Land Code (Cap. 138)
and Perak
Penang and Malacca Land Ordinance (Cap. 113)
Johor Land Enactment (No. 1)
Kedah Land Enactment (No. 56)
Kelantan Land Enactment 1938
Perlis Land Enactment 1356
Terengganu Land Enactment 1357

; therefore laws that are related to land should be made by

the State Judicial Body. However, the National Land Code was constituted by the
Parliament as Parliament Act No. 56, 1965. This was so done by the Parliament
by virtue of powers given to her under Para 76(4) of the Federal Constitution,
where it was mentioned that for the purpose of standardizing the laws and policy,
the Parliament is allowed to make laws on certain matters relating to land.
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The National Land Code came to enforcement in all

states in Peninsular Malaysia on 1.1.1965. Sabah and
Sarawak have their own land law respectively. With the
enforcement of the NLC 1965, all the seven land laws
that were shown in Table 1 above were repealed. Also
repealed were 36 other land laws and regulations that
were in force before 1.1.1966.

Most of the principles in NLC 1965 were based on the Torrens System and not
Islamic laws. Therefore there are still rooms for improvement in many aspects of
the laws. For example, under the NLC 1965, failure to pay the quit rent will result
in the land being reverted to the State Authority whereas in Islamic Law, the
Sultan will investigate the reasons for failing to pay the quit rent before taking
further action on the land owner. If for example, the problem was due to
unavoidable causes such as the crops on the land were destroyed, then the land
owner would be exempted from paying the quit rent. It is then the duty of the
Sultan to help the affected land owner.

Apart from the powers that are given to certain bodies and officers, NLC 1965
also covers aspects of land administration such as alienation of land, dealings,
revenue, conditions for land development and others.
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Although the NLC 1965 is the dominant land law in

this country, it does not override the following land
laws:
1. the Terengganu Land Settlement Enactment
1356,
2. the Padi Cultivators Act (Control of Rent and
Security of Tenure) Ordinance, 1955,
3. the Kelantan Land Settlement Ordinance, 1955,
4. the Land (Group Settlement Areas) Act, 1960,
5. the Perlis Land Settlement Enactment 1966,
6. any law for the time being in force relating to
exemptions from the payment of land revenue.

Consequently, provisions in the NLC 1965 cannot be applied if they contradict

any laws that are related to:
1. Customary tenure,
2. Malay Reservation Land or Malay holdings,
3. Mining Land
4. Sultanate Land
5. Wakaf of Baitulmal Land
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INPUT

1.5 DEFINITIONS OF LAND AND ITS TYPES

The National Land Code, under section 5, :

-
a) the surface of the earth and all substances forming that surface,
b) the earth below the surface and all substance therein,
c) all vegetation and other natural products, whether or not requiring the
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.

the land are severely curtailed. The State Authority retains

control over minerals and rock materials over all land (not
only over state land) and has the power to dispose of land and
minerals within its territory.
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1.5.1 Types of land

All the land in a particular state

may be categorized as the

Alienated land means any land in respect of which is

a registered title for the time being subsists, whether
final or qualified, whether in perpetuity or for a term of
years, and whether granted by the State Authority under
the National Land Code or in the exercise of powers
conferred by any previous land law, but not include
mining land.

Reserved land means any land for the time being

reserved for public purpose in accordance with the
provisions of S.62 of NLC or of any previous land law.

Mining land means any land in which mining lease or

certificate is granted or issued under any written law
relating to mining is for the time being in force.

Reserved Forest means any land under the control of

each state forest authority. Each state has its own forest
enactment dealing with forest reserves and matters
incidental to it.

State land means all lands within the territory of the

state not belonging to any other category.
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1.6 CLASSIFICATIONS OF LAND

Under Chapter 2 NCL, provisions are made for the classifications of land and the
categories of land use. These provisions are given below:-

For the purpose of this Act land shall be classified as follows:-

a) Land above the shore line and
b) Foreshore and sea-bed

(2) Land above the shore-line shall be classified as follows:-

i) Town land Land in any area of the State declared in
accordance with the provisions of Section 11 to be a town
or by virtue of section 442, deemed to be a town.
ii) Village land - Land in any area of the State declared in
accordance with the provisions of Section 11 to be a
village or by virtue of section 442, deemed to be a village.
iii) Country land - All land above the shore-line other than
town land or village land.
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INPUT

1.7 ADMINISTRATION OF LAND

All land is vested in the State Authority. State Authority means the Ruler or
Governor of the state. For administrative purposes each state is divided into
districts with defined boundaries. These districts may be further divided into
mukims .

1.7.1 The Powers of State Authority

basically five-fold as follows:

a) to alienate state land for a term of years not exceeding 99 years or in

perpetuity pursuant to the provisions of section 76 of the NLC;
b) to reserve state land and grant leases of reserve land;
c) to issue temporary occupation licenses in respect to state land, reserve land
and mining land.
d) to permit the extraction and removal of rock material from any land other
than reserved forest;
e) to permit the use of air space on or above state land or reserved land.

d in section 11 NLC, which

the State Authority may by notification in the Gazette:

a) to divide the territory of the State into districts (daerah);

b) to divide any district into sub-district;
c) to divide any district or sub-district into mukims;
d) vary or alter the boundary of any district, sub-district, mukim, town or
village;
e) After the survey or definition thereof by or on behalf of the Director of
Survey, declare any area of the state to be a town or village.
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1.7.2 State Director And Other State Officers

Under Section 12 of the NLC, the State Authority may appoint for the State:

a) a State Director of Lands and Mines, a Register of Titles and a Director of

Survey,
b) so many Deputy Directors or Land and Mines, Deputy Registrars of Titles,
Deputy Directors of Survey, District Land Administrators, Survey
Officers,
Settlement Officers and other officers as the State Authority may consider
necessary for the purposes of this act.

The State Director shall:

a) be responsible to the State Authority;

b) act in accordance with any direction given to him by the State Authority,
c) have all the powers conferred upon the Registrar and a Land
Administrator,
d) subject to the direction of the State Authority, exercise general control and
supervision over the Registrar, and over all officers(other than Deputy
Directors of Survey and other Survey Officers).

See section 12(3), NLC for

more information on the
responsibilities of State
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The State Authority also may by notification in the Gazzette delegate the State
Director, or to the Registrar, or to any Land Administrator or other officer
appointed under sec.12(1) NCL the exercise or performance of any powers or
duties conferred or impose on the State Authority, except for
i. making rules and
ii. disposing of any land within fifty metres :
a. of the bank of any such river ,
b. from the edge of any lake or spring,
c. of shoreline as may be declared in the Gazzette. (see sec.13 NLC)

1.7.3 General Powers Of State Director And Other State Officers

The State Director, the Registrar, and any Land Administrator, may for the
purposes of this Act (and without prejudice to the exercise of any powers
conferred upon him by any other written law)-

a) at all reasonable times have free access to, and enter upon, any land in the
State;
b) conduct enquiries in accordance with the provisions of Chapter 4
(Provisions relating to Enquiries)
c) administer oaths and affirmations, examine any witness on oaths and
affirmation, summon any person before him, take and record the evidence
of any such person and award costs to any person appearing and giving
evidence before him,
d) with the approval of the State Secretary, inspect and take copies of any
documents in any public office in the State,
e) require any person or body to:
(i) produce for inspection any document of title, or other related
document, in his possession or control, or
(ii) give him such information on the whereabouts of any such document,
and take copies or extracts from any such document.
f) require any application made to him to be supported by such affidavit or
statutory declaration as he may consider necessary or proper,
g) exercise all other powers conferred on him by the NLC, and all such
powers ancillary or incidental thereto as may be reasonably necessary to
carry out the purpose of the Act.

The Director Of Survey, the Deputy Director of Survey and any other Survey
Officer may exercise any power referred to in paragraphs (a), (e) and (g) above.
Any other officer appointed under sec. 12(1), NLC, may exercise any powers
referred to paragraph (a) to (f) above.
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Activity 1 d

TEST YOUR UNDERSTANDING BEFORE YOU CONTINUE WITH THE SELF-

ASSESSMENT

1.7 Find the name of some of the state officers appointed under sec 12(1), NLC in the
boxes below and circle them:
i) ________________________and Mines,
ii) Director Of Survey,
iii) Registrar Of Titles,
iv) ____________ Officer,
v) Land Administrator,
vi) Survey Officer, and
vii) __________________ Land Administrator.

S W E R T T C I R T S I D T N A T S I S S A
T T Y U I O P A S D F G F G H J K L Q A Z Z
Z X A C C V B N M K F E R T Y U I O P A C V
A S L T R T Y U I K K M N B C E R T F G V U
Q D A S E T T L E M E P T Q B U F H B W H L
A D N D S D Q B V W H L S U E V U T G M U L
Z A D F V D I R E C T O R O F S U R V E Y E
X F A W D S U R V D D H Q T S F T G M T M R
C B D H Q D W Q E W G S U G M K L B L F O E
D V M F B H S H G C M K D L R T O D V O K C
Q W I V T O U T S E T T L E M E N T U T H I
G M N Q U F V R O R H O F K T J D J H M W F
L C I C R Q H C B G C H R B S U H B J Q R F
B K S E R E G I S T R A R O F T I T L E S O
K C T B K G Q D K S Q P D S F D W S P W M Y
M Q R M Q D P G W Q W R M R M L R K M H K E
W C A B P K Z R P K Z P G F X Z A G H B R V
Q P T Z W L C K G R S R Q H W Q H N P Z G R
T Z O P B M S R P G C K G S C K F Q D K B U
G D R P C D M K C M G R M H D X W H F S H S
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Feedback To Activity 1d

1.7
i) State Director of Lands and Mines,
ii) Director Of Survey,
iii) Registrar Of Titles,
iv) Settlement Officer,
v) Land Administrator,
vi) Survey Officer, and
vii) Assistant District Land Administrator.

S W E R T T C I R T S I D T N A T S I S S A
T T Y U I O P A S D F G F G H J K L Q A Z Z
Z X A C C V B N M K F E R T Y U I O P A C V
A S L T R T Y U I K K M N B C E R T F G V U
Q D A S E T L L E M E P T Q B U F H B W H L
A D N D S D Q B V W H L S U E V U T G M U L
Z A D F V D I R E C T O R O F S U R V E Y E
X F A W D S U R V D D H Q T S F T G M T M R
C B D H Q D W Q E W G S U G M K L B L F O E
D V M F B H S H G C M K D L R T O D V O K C
Q W I V T O U T S E T T L E M E N T U T H I
G M N Q U F V R O R H O F K T J D J H M W F
L C I C R Q H C B G C H R B S U H B J Q R F
B K S E R E G I S T R A R O F T I T L E S O
K C T B K G Q D K S Q P D S F D W S P W M Y
M Q R M Q D P G W Q W R M R M L R K M H K E
W C A B P K Z R P K Z P G F X Z A G H B R V
Q P T Z W L C K G R S R Q H W Q H N P Z G R
T Z O P B M S R P G C K G S C K F Q D K B U
G D R P C D M K C M G R M H D X W H F S H S
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KEY FACTS

1. There were predominantly three land administration systems in the Peninsular of

Malaysia before the National Land Code, 1965. The systems were The Traditional
Land Administration System, The Registration of Deeds and The Torrens System.
2. With the enforcement of the National Land Code 1965, about forty laws relating
to land were repealed.
3. The National Land Code is the dominant land law in this country and it governs
extensive aspects of land administration. However, it still has limitations on some
areas of application and there are a number of laws that it cannot overrule.
4. Land is a state matter; therefore the administration of land is the sole
responsibility of the State Authority.
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Self-Assessment 1

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. Briefly describe the Traditional Land Administration System.

2. List the power of administrative areas of the State Authority.
3. List the powers that are commonly shared by the State Officers that are appointed
by the State Authority under section 12 of the NLC.
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Feedback To Self-Assessment 1

now.

1. In the Traditional Land Administration System, land ownership was based solely
on the occupation of the land. During that time, land was divided into two main
dead land living land Dead land at has
Living
land
Living land
nam farmland or upland

Country land Proprietory right in

kampong land endures during occupation and afterwards as long as it is planted with
fruit trees as a proof of occupancy.

Paddy field or wetland wet land that is planted with padi. Proprietory right
paddy field or wetland as long as the land is occupied and for up to three
years after its abandonment.

Farmland or upland rs to hilly areas that are used for planting seasonal crops.
Proprietory right of the land lasts as long as it is occupied which normally coincides
with a single season.

There can be no proprietory right in dead land

In general, this traditional reference of ownership system is a very loose one. A

person can own a land as long as he is a Muslim, willing to clear the land and does

The Sultan, as the head of the state has the right to collect land revenue and quit rent
dead land he pleases.
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2.
the State Authority may by notification in the Gazette:

a) to divide the territory of the State into districts (daerah);

b) to divide any district into sub-district;
c) to divide any district or sub-district into mukims;
d) vary or alter the boundary of any district, sub-district, mukim, town or
village;
e) After the survey or definition thereof by or on behalf of the Director of
Survey, declare any area of the state to be a town or village.

3. The powers that are commonly shared by all the state officers are:
a) at all reasonable times have free access to, and enter upon, any land in the
State;
b) require any person or body to:
(i) produce for inspection any document of title, or other related
document, in his possession or control, or
(ii) give him such information on the whereabouts of any such
document, and take copies or extracts from any such document.
c) exercise all other powers conferred on him by the NLC, and all such powers
ancillary or incidental thereto as may be reasonably necessary to carry out
the purpose of the Act.