1. areej@iium.edu.my

2. Section 41
StateAuthority has the power to dispose of and
the power to take back state land
Section 42
One method by which the State Authority may
dispose of land is by alienation.
(Note: methods of disposal other than alienation include
reservation,TOL, permits –see Section 42).

3.  Section 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 provisions
of section 76 …

4.  Section 76 Meaning of alienation.
 The alienation of State land under this Act shall consist of its
disposal by the State Authority-
(a) for a term not exceeding ninety-nine years;
(aa) in perpetuity-
(b) in consideration of the payment of an annual rent;
(c) in consideration of the payment of a premium;
(d) subject to a category of land use; and
(e) subject to such conditions and restrictions in interest as
may be imposed by the State
Authority.

5.  The proprietor gets land evidenced by title
 The period is longer than the other modes of
disposal
 If the land is later on acquired by the State
Authority for public purposes, the proprietor
will get compensation
 Proprietor can make dealings with regard to
the land

6. Section 76
“The alienation of State land under this Act shall
consist of its disposal by the StateAuthority-
(a) for a term not exceeding ninety-nine years;
(aa) in perpetuity-…”

7.  After the 1985 amendments:
 S 76 (a) not more than 99 years  State lease
(leasehold land)
 S 76 (aa) in perpetuity (999 years)  (freehold land)
 Only applicable to:
 land alienated to the federal government or public
authority
 If used for public purposes
 If state authority is satisfied that there are special
circumstances which render it appropriate to do so

8. Section 79 (2)
 Area approved
 Period of alienation
 Form of FinalTitle
 Rate to calculate rent
 Premium
 Category of land use
 Express conditions and restrictions in interest

10.  (1) Subject to the provisions of this section, the State Authority may
alienate land under this Act subject to such express conditions and
restrictions in interest conformable to law as it may think fit.
 (2)The conditions and restrictions in interest to be imposed under
this section in the case of any land shall be determined by the State
Authority at the time when the land is approved for alienation.
 (3) Every condition or restriction in interest imposed under this
section shall be endorsed on or referred to in the document of title
to the land; and in complying with this sub-section the State
Authority shall, in any case where it imposes both conditions and
restrictions in interest, distinguish between the two.

11.  Imposition by the StateAuthority of obligations
relating to the use of land for
agricultural, building and industrial purposes.
 Section 5:
 "condition" does not include any restriction in
interest
 2 types of conditions:
 Express conditions
 Implied conditions

12. EXPRESS CONDITIONS
 Section 120
 Endorsed on the document
of title (clearly spelled out
in the title)
 Applies specifically to that
particular land
IMPLIED CONDITIONS
 Sections 114-118
 Relate to the category of
land use that the land is
subject to (Conditions that
have been laid down in the
NLC)
 Only to the extent that it is
not inconsistent with
express conditions

13.  “This land may only be used to plant rubber
trees”
 “This land is to be used as a residence only”
 “This land is to be used for the purpose of a
petrol station”
 And this is clearly stated or ENDORSED on
the document of title.

15.  Section 114 – Relating to boundary marks
 Sections 115 – Relates to the category of land
use
 See:
 Agriculture – Sections 115 and 121
 Building – Sections 116 and 122
 Industry – Sections 117 and 122
 Example: for agricultural land, only buildings for
the purpose of agriculture can be erected on the
land. (Section 115)
 Example: agricultural land under QT, only a
temporary building can be erected.

16.  Section 127
 The land will be liable to fortfeiture

17.  Section 5:
 “any limitation imposed by SA on any of the
powers conferred on a proprietor by Part
Nine, or on any of his powers of dealing under
Division IV …”
[Note:
Part Nine: Subdivision, partition, amalgamation
Division IV: Dealings]

18.  In other words, a restriction in interest
restricts the power of the registered
proprietor to deal with his land.
[Note: S5 “condition” does not include any restriction in
interest]
 Section 120: SA may impose restriction in
interest.

19.  Examples of general restrictions in interest:
 Leasehold land  must get approval of State
Authority before dealing with leasehold land.
 Malay Reserve Land  can only be
transferred to a Malay.

20.  Specific restrictions in interest can be found
in the document of title.
 “This land cannot be transferred within 10
years from the date of registration.”
 “This land may not be subdivided, partitioned
or amalgamated without the express
approval of the StateAuthority”.

22.  The dealing will not be fit for registration.
 Even if registered, the dealing will NOT be
indefeasible.
 Case: UMBC v Syarikat Perumahan Luas
[1988]

23.  There was a restriction in interest prohibiting
the charge of the land without the written
sanction of the StateAuthority.
 A charge was registered in breach of an
express restriction in interest.
 Court:The interest of the chargee is
defeasible.
 Registration of the charge was obtained by
means of an insufficient or void instrument.
 The Registrar had acted ultra vires.

25.  3 categories: agriculture, building, industry –
S 52
 Endorsed on document of title
 (Note: before the 1985 amendments, there
were 4 categories;
agriculture, commercial, residential, industry)
 “NIL” or “No category” --. Land not subject to
a category of land use. (SA will normally
attach conditions).

26.  ‘Conversion’  may convert from one
category to another
 E.g. from ‘agriculture’ to ‘building’
 Section 124: Power of StateAuthority to vary
conditions etc.
 Proprietor may apply to StateAuthority for
the alteration of any category of land use.

28.  Section 81(1)
 Payable upon approval of alienation
First year’s rent
Premium Survey fees
Fees for preparation of title

29.  LandAdministrator will send notice in Form
5A to the intended proprietor that land
revenue is due.
 Effect of non-payment?
 Section 81(2):The approval of alienation will
lapse.
 However, see the case of Teh Bee v K
Maruthamutu.

31.  Section 78(3):
 “The alienation of State land shall take effect
upon the registration of a register
document of title thereto …
and, notwithstanding that its alienation has
been approved by the StateAuthority, the
land shall remain State land until that time.”

32.  Alienation takes effect upon registration of a
register document of title, and not upon
approval of the StateAuthority.
 The land shall remain state land until
registration.

33.  Justice HashimYeop Sani:
 “Section 78(3) of the Code determines when
an alienation of state land shall take effect
and it is clear from that subsection that
alienation takes effect upon registration”.

35. Final
Title
Qualified
Title
Registry
Title
Land Office
Title

36.  Section 176: Purposes and effect of qualified
title.
(1)The purposes of qualified title are-
(a) to enable land to be alienated in advance of
survey;
(b) to enable title to be issued in advance of
survey.

37. (2) Qualified title shall confer on the proprietor the
like rights in every respect as those conferred by
final title, save that-
(a) the boundaries of the land shown on the document
of title thereto shall be provisional only, and
(b) the land shall not be capable of being sub-
divided, partitioned or included in any amalgamation.
(3) qualified title may be converted into final title.

38.  Section 77:Titles under which land may be alienated.
(1)The titles under which State land may be alienated
under this Act are-
(a) Registry title and Land Office title (being forms of final
title), and
(b) qualified title.
(2) Land may be alienated under qualified title at any
time after its alienation has been approved by the State
Authority, but may not be alienated under either of the
forms of final title aforesaid unless it has been surveyed.

39. RegistryTitle
 Section 5: title evidenced by a grant or a
State lease, or by any document of title
registered in a Registry under the provisions
of any previous law
 Section 77(3) –Town/village land, country
land exceeding 4 hectares, foreshore &
seabed
 Within admin of Registry Office

40. Land OfficeTitle
 Section 5: title evidenced by a Mukim grant
or Mukim lease, or by any document of title
registered in a LandOffice under the
provisions of any previous law.
 Section 77(3): country land not exceeding 4
hectares
 Within admin of Land Office