THE NATIONAL LAND

CODE 1965
IMPERIA INSTITUTE OF TECHNOLOGY

Application of the 1965 National Land Code

Enforced in all states except Sabah and Sarawak
Besides the NLC, other legislation relating to land law

passed at the federal level include:

Land Acquisition Act
Strata Titles Act

There are also legislations enacted at the state level i.e.

the various Malay Reservation Enactments.

Various subsidiary legislation e.g. the various State Land
Rules

State Authority
Land is vested in the State Authority
S 40 NLC:
There is and shall be vested solely in the State Authority the entire
property in(a) all State land within the territories of the State;
(b) all minerals and rock material within or upon any land in the State the
rights to which
have not been specifically disposed of by the State Authority.

Who is the State Authority?

S 5 NLC: Ruler/Governor of the State

Constitutional Issues
Land is a State matter, only the State legislature may

make laws with respect to land.

Land comes under the State list -- Article 74 FC, Ninth Schedule

Exception: Power of the Parliament to make laws under

the State list for the purpose of uniformity Article 76 (4)

E.g. the National Land Code
East Union (M) Sdn Bhd v Government of Johor (1981) 1

MLJ 151.

Features of the National Land Code 1965

Register Document of Title (RDT) The Register
Retained at the Registry or Land Office
Available to the public
Issue Document of Title (IDT)
Kept by the registered proprietor
Evidence of his ownership

Registry Title & Land Office Title

Final title & qualified title
Strata Title

1. Conclusiveness of the Register

Register Document of Title (RDT/The Register)
Two principles:
The mirror principle
The curtain principle
The register is everything Teh Bee v K Maruthamuthu

 The Mirror 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.
S 340 NLC:
The title or interest of any person or body for the time being
registered as 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

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.
S 89 NLC:
Every register document of title duly registered under this Chapter
shall, subject to the provisions of this Act, be conclusive evidence

 The register is everything Teh Bee v K Maruthamuthu

Creelman v Hudson Bay Insurance Co
And to enable an investigation to take place as to the right of the
person to appear upon the register which he holds the certificate
which is the evidence of his title, would be to defeat the very purpose
and object of the statute of registration.

2. Indefeasibility
Indefeasibility of title and interest is guaranteed.
S 92(1) NLC:
The alienation of State land to any person or body under final title shall
confer on that person or body a title to the land which shall be
indefeasible.

S 340 NLC:
The title or interest of any person or body for the time being registered
as 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.

However, there are exceptions.

3. Registration
The importance of registration
S 206(1)(b) NLC:
no instrument effecting any such dealing shall operate to transfer the title to
any alienated land or, as the case may be, to create, transfer or otherwise
affect any interest therein, until it has been registered

E.g. A purchaser does not acquire legal title until the transfer

to him is registered.
Dealings recognised under the NLC must be registered or

endorsed.
Transfers, charges and leases
Tenancies exempt from registration, statutory liens
Caveats

4. Caveat system
To protect an unregistered interest.
4 types of caveats:
Registrars caveat,
private caveat,
lien-holders caveat,
trust caveat.

5. No adverse possession
No adverse possession against the State nor against the

registered proprietor of any land.

Title to State land can only be acquired by the process of
alienation and no other.
S 48 NLC:
No title to State land shall be acquired by possession, unlawful
occupation or occupation under any licence for any period whatsoever.

S 341 NLC:
Adverse possession of land for any length of time whatsoever shall not
constitute a bar to the bringing of any action for the recovery thereof
by the proprietor
Sidek & Ors v The State of Perak [1982] 1 MLJ 313

6. Reversion to the State

Alienated land will revert to the State under several

circumstances.
S 46(1) NLC
(a) upon the expiry of the term (if any) specified in the document of
title thereto;
(b) upon the publication in the Gazette of a notice under section 130
(that is to say, a notice published on the making of an order of
forfeiture by the Land Administrator on the grounds of non-payment
of rent or breach of condition);
(c) in the circumstances mentioned in sections 351 and 352 (which
relate respectively to the death of a proprietor without successors,
and the abandonment of title by proprietors); and
(d) upon the surrender thereof in accordance with the provisions of
Part Twelve

6. Equity
Failure to register or non-compliance with the

requirements of NLC
E.g. Unregistered charge, failure to enter a lien-holders
caveat.
NLC is not concerned with dealings which do not comply
with its requirements. No remedies under NLC.

 Would equity apply?

S 6 Civil Law Act 1956 excludes the application in

Malaysia of English land tenure (including English

equitable principles relating to land tenure e.g.
mortgagors equity of redemption).
S 6 CLA:
Nothing in this Part shall be taken to introduce into Malaysia or any of the
States comprised therein any part of the law of England relating to the
tenure or conveyance or assurance of or succession to any immovable
property or any estate, right or interest therein.

Haji Abdul Rahman v Mohamed Hassan [1917] AC 209

 However, there is nothing in NLC that prohibits the

application of general equitable principles.

Therefore, general equitable principles apply by virtue of
S 3 CLA to the extent that they are not inconsistent with
NLC.
Another provision is S 206(3) NLC where it states that

provisions of the NLC which require that dealings be

registered shall not affect the contractual operation of
any transaction relating to alienated land or any interest
therein.
Mahadevan v Manilal & Sons [1984] 1 MLJ 266