SALMIN BINTI ISMAIL-2012255004

Law 504
Assignment 3

Salleh and Osman was the registered proprietor of a piece of freehold land in Balok.
The category of land use endorsed on the title is for agriculture purpose only in
order to develop the land into a housing project Salleh and Osman applied for
subdivision of the land into 200 portions with separate title to be issued with
respect to each portion. They further applied for conversion of the category of land
use from agriculture to building. The land committee made a counter proposal that
Salleh and Osman application would be approved if they surrendered perpetuity title
in return for 99 years lease hold and built 40 low cost houses. Meanwhile Salleh
and Osman started the ground works project.
Samad was the registered proprietor of a piece of land adjacent Salleh and Osman
land. Samad constructed a double story house and rented out the ground floor to
Kassim for a period of two years effective on 5 th January 2014 at a monthly rental of
RM1000 monthly. On the 1st June 2015 Samad decided to sell the land to Raju at
RM700,000 and both parties entered into a Sale and purchase Agreement. Raju
paid a deposit sum of RM70,000 and was given a period of three months to settle
the balance of the purchase price.
With reference to National Land Code 1965 and decided cases answer the following
question:
1. Salleh and Osman received a letter from the State Authority confirming that
his application to develop the land was approved on condition that they
accept their terms, if they surrendered the perpetuity title in return for 99
years hold and built 50 low cost houses. Salleh and Osman would like to
challenge the decision of the State Authority for imposing such conditions.
Advise them.
2. Recently Samad received a notice form 6A from the State Authority. Samad
seeks your advice on the significance of the notice. Advise Samad.
3. Kasim received a notice from Raju on 1st July 2015, requesting him to vacate
the ground floor of his house immediately. Kassim would like to know whether
there is any provision under the National Land Node 1965 to protect the
interest of tenant like him. Advise Kasim.

10 marks

Answer:
1. The issue is whether Salleh and Osman could challenge the decision of the
State Authority for imposing such conditions
Sec. 79(2): At the time the State Authority approves the alienation of land, it
shall determine:
(f) The category of land use
(g) The express conditions and restrictions in interest imposed
Sec.120: The State Authority may impose conditions and restrictions in
interest as it may think fit and endorse such conditions and restrictions in the
document title.
However, express conditions imposed must not be inconsistent with any
implied condition.
A registered proprietor must comply with both, express and implied,
conditions.
Sec. 124(1): The proprietor of any alienated land may apply to the State
Authority to vary conditions, restrictions in interest or the category of land
use
Provided that every person having a registered interest in the land, or in
occupation of any part of the land, has consented to the application for
variation
Provided that any rent due has been paid
Sec. 124(5): In approving the variation, among the matter that the State
Authority may impose is other requirements as it may think fit that must be
complied with
Case: Pengarah Tanah Galian, WP v Sri Lempah Enterprise: The respondents
applied for a subdivision and conversion in order to develop a piece of land
granted in perpetuity. In response, a counter proposal was made that the
respondents should surrender their perpetuity title to the State in return for a
99-year leasehold and the approval of their applications
Held: The State Authority has no power to compel the proprietor to surrender
its freehold title. The discretion of the State Authority to impose such
conditions as it may think fit is not unfettered. The conditions imposed must
be fair, reasonable and related to the permitted development of the land.
Case: Cayman Development v Mohd Saad Long & Anor: The applicant wanted
to develop a piece of land under the category of agriculture, and thus applied
for conversion from agriculture to building. The State Authority, in approving
the application, imposed a requirement that all low-cost houses built were to
be sold to the public at a 5% discount of the price of RM25, 000.
Held: The State Authority has no such power under Sec. 124(5) and had
acted ultra vires the NLC in imposing such a requirement

Therefore, Salleh and Osman could challenge the decision of the State
Authority for imposing such conditions

2. Sec. 97 (1)(2): When rent is in arrear, the proprietor will be served a notice of
demand in Form 6A and a note of the service of notice will be endorsed on
the RDT
Case: Paw Hing & Anor v Register of Titles Malacca:
The appellant found undated and unsigned entries that Form 6A had been
issued. Form 6A has been issued to the proprietor for arrears of land rent, but
there was no compliance with sec. 97(2).
Held: The endorsement is a mandatory procedure, and not merely directory.
Non-compliance with sec. 97(2) rendered the forfeiture invalid
Sec. 98(1): The sum demanded through the notice in Form 6A may be paid by
any person or body other than the proprietor
When the notice in Form 6A is served upon the proprietor, it also applies to
those who have an interest in the land
Sec.99: Payment of the sum demanded within the stipulated time will cause
the notice in Form 6A to cease to have effect and the note endorsed on the
RDT will be cancelled by the Land Administrator
Sec.100: The Land Administrator shall not accept any amount lesser than that
stated in Form 6A.
If the proprietor fails to pay the full amount after the expiry period stated in
the notice, the Land Administrator may be order declare for the land to be
forfeited to the State Authority
Therefore, Samad must paying in full to the Land Administrator, within the
time specified, the total specified in respect of that land, in order to avoid his
land forfeit to the State Authority
3. The issue is whether Raju could ask Kasim to vacate the ground floor of his
house immediately.
Sec. 213(1) & 223: A tenancy denotes a letting of land for a term not
exceeding three years and is not a registrable interest
Sec. 213(3)(a): A tenancy exempt from registration is not binding upon any
person or body to whom the land is transferred
Once the land is transferred, the new landlord may chose to evict the tenant
Sec.213(3): A tenancy will be binding upon the person or body to whom the
land is transferred f, before the transfer takes place, the tenancy has become
protected by an endorsement on the RDT

A tenants interest in the land would be protected against subsequent

dealings if the tenancy was endorsed
Sec. 316(1): An application for endorsement of tenancy must be made to the
Registrar for the tenancy to be endorsed on the RDT
Sec. 316(2): An Application must be accompanied by:
If the tenancy relates to only a part of the land, a plan and description
sufficient for the part to b identified must be attached
If the land is subject to a charge, a written consent of the charge must be
attached
Only when an endorsement has been perfected will the tenancy bind any
subsequent transferee.
This will allow a tenant to remain on the land until the end of the tenancy
agreement despite the land having been transferred to another person or
body.
Failure to endorse a tenancy on the register document of title would not bind
the tenancy upon any subsequent transferee of the land
Case: Than Kok Leong v Low Kim Hai
The plaintiff had purchased a premise, but at the time of the purchase, the
defendant was a tenant of the previous proprietor. One and half years later a
notice to quit the premises was issued by the plaintiff, upon which the
defendant refused to vacate. The defendant counter-claimed for specified
performance and argued that the tenancy was binding upon the plaintiff
Held: The tenancy was not binding on the plaintiff under sec. 213(3) as it had
not been endorsed on the RDT
Therefore Raju could not ask Kasim to vacate the ground floor of his house
immediately as the process and procedure transfer land from Samad to him is
not been successful yet and Karim I still bound by the tenancy agreement
with Samad