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Land Charge Possession Guidelines

The chargee has the power to take possession of charged land or a lease if the chargor defaults. There are two ways for a chargee to take possession - constructive possession for land subject to a lease/tenancy by receiving rents and profits, or actual possession of vacant land by physical occupation. Specific procedures must be followed, including serving the appropriate forms (Form 16J or 16K) and registering with the Chief Registrar of Titles. Taking possession is binding on lessees/tenants until withdrawn by the chargee, cancelled by the chargor, or cancelled by a purchaser in a sale under Chapter 3. The effect of taking possession transfers responsibilities for the property to the chargee.

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IZZAH ZAHIN
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340 views1 page

Land Charge Possession Guidelines

The chargee has the power to take possession of charged land or a lease if the chargor defaults. There are two ways for a chargee to take possession - constructive possession for land subject to a lease/tenancy by receiving rents and profits, or actual possession of vacant land by physical occupation. Specific procedures must be followed, including serving the appropriate forms (Form 16J or 16K) and registering with the Chief Registrar of Titles. Taking possession is binding on lessees/tenants until withdrawn by the chargee, cancelled by the chargor, or cancelled by a purchaser in a sale under Chapter 3. The effect of taking possession transfers responsibilities for the property to the chargee.

Uploaded by

IZZAH ZAHIN
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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REMEDIES OF CHARGES (CHARGOR IN DEFAULT)

Taking possession (s270-277)


The chargees power to take possession of the
charged land/lease shall not exercisable(s.270 (1))
(a) LOT/ corresponding form of Q.T.
Case:
Malaysia Credit Finance Bhd v. Yap Hock
Choon & Anor [1989] 2MLJ 363

(aa)
Charge of undivided share

(b)
Town/ village land
Except such land is not
occupied by the chargor

s. 270 (2)(3)
Only the first chargee has such right if there are more than one
charge. Unless the Minister of Land order on the National Land
Council recommendation which provides for the exercise of such
power by 2nd and subsequent chargee.

2 ways of taking possession s.271


(1)(a) Constructive land subject to lease and tenancy

(1)(b) Actual vacant land.


Land not subject to lease/ tenancy

Receive merits and profits due


Physical occupation

Procedures - 272(1)(a)
- Form 16J
- s. 272(2)
- C.R.S. 274(2)

Procedure: - s.272(1)(b)
- Form 16K
- s. 272(3)
- C.R.S. 274(1)(2)

s. 273(1)(3) + s.275

s. 273(1)(2) + s.275

s. 276(1)
(a) withdrawn by
the chargee

s.276
after Form 16J served under s.272(2) or s.275(7) binding
on the lessee/tenant & subsequent transferee of the lease/
tenancy until:

(b) cancelled by the chargor


Serve form 16L to
lessee/tenant

s. 277(a)(b)(c)(d)
The effect of taking possession
Case: Woon Fooh Hoh v. Muthiah Chetty [1934] MLJ 121

(c) cancelled by the purchaser on


sale under Chapter 3
Serve Form 16M to
lessee/tenant

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