C3347/UNIT2/1

UNIT 2

DISPOSAL OF LAND BY ALIENATION

OBJECTIVES

General Objective

To understand the concepts of alienation of land under the National Land Code 1965
and matters related to it.

Specific Objectives

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

Define disposal and alienation of land.
Identify the class of land that can be alienated.
Recall the persons and bodies to whom land may be alienated.
List the matters that are determined by the State Authority on the approval of
land alienation.
Describe planned and unplanned alienation.
Differenciate final and qualified title.
Describe Register and Issue Documents Of Title.
Summarize the process of application of land.
List the items of land revenue payable on approval
Explain the rights of proprietor
Recall the situations where alienated land may revert to state land.
Describe categories, expressed conditions, implied conditions and restrictions
in interest.
Identify what may be varied on the document of title.
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INPUT

Initially, all land belongs to the State.

Then the State may dispose the land by
alienation or by other methods such as
temporary occupation of land and
reservation of land which will be
discussed in details in the next unit.

2.1 ALIENATION

exercise of any of the powers conferred by section 42 or of any of the

corresponding powers conferred by any previous land law.
(NLC Sec.5)

in consideration of the payment of rent, and otherwise in accordance with the

provision of section 76, or when used in relation to the period before the
commencement of this Act, to dispose of State land in perpetuity or for a term
of years under a previous land law (not being a law relating to mining)
(NLC Sec. 5)

Section 76 elaborates the meaning of alienation and outlines the conditions

where land may be disposed in perpetuity. A full documentation of section 76
is given below:
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The alienation of State land under this Act shall consists of its disposal by State
Authority
(a) for a term not exceeding ninety-nine years;
(aa) in perpetuity -
(i) where the Federal Government requires the State Authority to
cause a grant in perpetuity to be made to the Federal Government
or to a public authority;
(ii) where the State Authority is satisfied that the land is to be used
for a public purposes; or
(iii) where the State Authority is satisfied that there are special
circumstances which render it appropriate to do so;

(b) in consideration of the payment of an annual rent;

(c) in consideration, unless the State Authority thinks fit to exempt
therefrom in any particular case, of the payment of a premium;
(d) subject, unless the State Authority otherwise directs pursuant to sub-
section (5) of Section 52, to a category of land use; and
(e) subject to such conditions and restrictions in interest as may be imposed
by the State Authority under, or are applicable thereto by virtue of any
provision of the NLC.

2.2 CLASS OF LAND THAT CAN BE ALIENATED

Only state land can be alienated. Any part of the foreshore and seabed may
only be given a lease for a period of not more than 99 years.

2.3 PERSONS AND BODIES TO WHOM LAND MAY BE ALIENATED

Persons and bodies to whom land may be disposed according to Sec.
43 NLC:
Natural persons other than minors.
Corporations having power under their constitution to hold land
Sovereigns, governments, organizations and other persons
authorised to hold land under the provisions of the Diplomatic
and Consular Privileges Ordinance, 1957.
Bodies expressly empowered to hold land under any other
written law
Only to the Malays as for Malay Reservation Land,
Only to the indigenous people as for Indigenous Reservation Land,
Only to the Kelantanese as for Kelantan State Land.
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2.4 MATTERS RELATING TO LAND THAT ARE DETERMINED BY

THE STATE AUTHORITY UPON APPROVAL

The followings are to be determined by the State Authority

at the time of approval:
Area of land approved,
Period/duration,
Form of final title,
Form of qualified title
Rent, rates determined according to sec. 80 (1),
Premium, if any,
Category of land use, and
Express conditions and restrictions in interests, if
any.

2.5 METHODS OF LAND ALIENATION

There are two ways that the state land may be alienated, namely planned and
unplanned alienation. Planned alienation refers to the case where an area of
land is selected by the Land Office and after assessing the suitability,
applications are then invited. Then the selected applicants are required to
submit the formal applications. Planned alienation is suitable for both large
and small areas of land. It has been recommended by the National Land
Council in 1958. Planned alienation for large areas of land is normally done
under the Land Group Settlement Areas Act (GSA), 1960.

On the other hand, unplanned alienation refers to application of land made by

the person or body on his or its own initiative.

Two situations can thus be seen, i.e., one where

applications are made in response to a call made
by the Land Office and the other where
application is made by the person or body on his
or its own initiative
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INPUT

2.6 FORMS OF TITLE FINAL AND QUALIFIED TITLE

A land title serves as an evidence of ownership and according to section 77(1)

it can be in the form of final title and qualified title. Final title is given to land
that has been officially surveyed so that its boundaries and area have been
ascertained in accordance with the terms of the Code or under a previous land
law. Qualified title is given to land that is not precisely surveyed. This means
that the boundaries shown on the document of title are only provisional and
may be subjected to change by the official survey of the land. After the official
survey has been completed, a final title may be issued.

The purpose of qualified title is to enable the person to whom land has been
approved under section 79 to obtain title of the land before it is surveyed. It
gives not only the right of occupation but also indefeasibility of title to the
holder, thus recognizing that he has a statutory estate subject to section 176.
This means that it is capable of being transferred, leased or charged, it will in
every way confer the same advantages as the final title with the sole exception
that the land cannot be further sub-divided, partitioned or amalgamated until
formal survey has been completed. Any building on such land may also not be
sub-divided.

Final title can be either Registry or Land Office title while Qualified title can
be either Qualified title corresponding to Registry title and Qualified title
corresponding to Land Office title. Registry titles are registered by the
Registrar of Titles in the Registry of the State (one in each state-mostly in the
state capital and land office title are registered by the Land Administrator at
the Land Office of the district (one in each district). Registry titles are issued
in respect of towns or village land, any lot of country land not exceeding ten
acres and any part of the foreshore and seabed. Land Office titles are issued in
respect of any lot of country land not exceeding ten acres in area. However,
the State Authority may if it thinks fit, on approving the alienation of any
country land, direct it to be held under Registry title even though the area is
less than ten acres.
A final title as a registry title is either a state grant or a
state lease dependent on the terms of alienation.
However, title to any part of the foreshore or seabed
may only be by way of State lease as these may only be
alienated for a period not exceeding 99 years. A final
title as Land Office title is either a mukim grant or a
mukim lease depending on the terms of alienation.
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2.7 REGISTER AND ISSUE DOCUMENT OF TITLE

Under section 85 NLC, for a final title, two documents are prepared by the
Registrar namely the register document of title (RDT) and the issue document
of title (IDT) which is a duplicate of RDT. There should be only one lot in
each title. The RDT is bound up in the appropriate Register or book at the
Registry or Land Office whilst the IDT is issued to the proprietor.

The register and issue document of title contain particulars of the lot and
include a plan of the land. Upon registration, an issue document of title will be
prepared and issued to the proprietor. All items of land revenue outstanding
must be settled before the title is delivered.

Once the land has been alienated to a proprietor the title

is said to be indefeasible. Indefeasibility implicitly
means that the State guarantees that the registered

unquestionable. Only fraud, forgery, mistake or

misrepresentation, insufficient or void instrumentation
and unlawful acquisition work to defeat the title.

2.8 THE PROCESS OF UNPLANNED ALIENATION

The procedures of unplanned alienation can be found in the Manual for Land
Administration 1980. These procedures can be summarized as follows:
i. The applicant submits the application using the form specified by the
Land Office together with the plan and particulars of the said land and
fees payable.
ii. The Land Office will refer the application to the relevant departments
for their comments.
iii. The Land Administrator will forward the application to the State
Authority with the recommendation for or against the approval of the
application.
iv. The Executive Council will decide on the approval of the application
and the applicant will be informed of this decision.
v. If the application is approved, the applicant will have to pay all the fees
specified.
vi. The subject land will be surveyed either by the Survey and Mapping
Department or a licensed surveyor.
vii. A registered title will be issued to the proprietor.
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Activity 2b

TEST YOUR UNDERSTANDING BEFORE YOU CONTINUE WITH THE

2.6 Complete the following diagrams on Final title and Qualified title.

Final Title

Registry Title (a)

(RT)

(b) State Lease (c) Mukim Lease

(SL)

Qualified Title(QT)

QT corresponding to (d)
RT

(e) QT corres. (f) QT corres. to ML

to SL
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INPUT

2.9 LAND REVENUES PAYABLE ON APPROVAL

The following land revenues are payable at the time of approval are:

the first ye
calculated based on the approved area of land. The Registrar shall prepare,
register and issue a qualified title in respect of the land upon payment of all
fees. The alienation of state land shall take effect upon the registration of a
document of title. The rent shall be payable as from the beginning of the
calendar year in which the land is alienated or, if it is alienated after the end
of September in that year, as from the beginning of the following calendar
year.
premium, if any,
survey fees, cost of boundary marks, and
fees for preparation and registration of title.

2.10 THE RIGHTS OF PROPRIETORS

The proprietor enjoys the following benefits on the land:

the right to transfer, lease, give tenancies, charge and lien and give
easements on the land,
the right to sub-divide, partition or amalgamate the land (true to final title
holder only),
the right to sub-divide any building on the land (true to final title holder
only),
the rights to surrender the whole or some parts the alienated land to the state,
the rights to alter the land use category, rescind or alter any express
condition or restriction in interest endorsed on the document of title,
the right to hand down the land ownership to the successors upon his death
by virtue of a will,
the exclusive use and enjoyment of the air space above the land and land
below the surface, as is reasonably necessary to the lawful use and
enjoyment of the land,
the right to support the land in its natural state by any adjacent land, and all
other natural rights subsisting thereof, and
rights of access to foreshore, river or public access.
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2.11 HOW ALIENATED LAND MAY BE REVERTED TO STATE LAND

Alienated land may revert to and vest in the State Authority under the
following circumstances:

upon the expiry of the term specified in the document of title,

upon the forfeiture of the land by land administrator on the grounds of non-
payment of rent or breach of condition,
upon the death of a proprietor without successors,
upon abandonment of title by proprietors ( ie. the proprietor is not in
effective occupation of the land and has not for the past seven years, done
any act or thing evidencing his title thereto)
where the shore line or the bed of any river advances so as to encroach on
the alienated land,
where the proprietor surrenders the whole or some parts of the land the state
authority.
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Activity 2c

Fill in the blanks with the most suitable answer.

2.13 If the approval for land application is given after the end of __________, the

2.14 Survey fee is payable to the Registry or Land Office if the land is surveyed by
the____________________________. If the land is surveyed by a licensed
surveyor then the fee is payable to the licensed surveyor.

2.15 The registered proprietor has the right to surrender his land, either entirely or
partly to the __________________.

2.16 The proprietor also has the right to __________________, river or public
access.

2.17 An alienated land may revert to State land if the proprietor does not occupy or
fail to do any act or thing to the land for the past _______ years.
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Feedback to Activity 2c

2.13 September
2.14 Survey and Mapping Department
2.15 State Authority
2.16 foreshore
2.17 7

Hope you are doing fine

only one more

p
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INPUT

2.12 CATEGORIES, EXPRESSED CONDITIONS, IMPLIED CONDITIONS

AND RESTRICTIONS IN INTEREST

The National Land Code 1965 has allocated four items for the purposes of
controlling the alienated land from being used for other purposes than what it
was determined upon approval. The items are categories of land use,
expressed conditions, implied conditions and restrictions in interests.

2.12.1 Categories

The categories of land use for any alienated land can either be one of the
followings:
a) Agriculture, or
b) Building, or
c) Industry

For land that was alienated before NLC, sometimes there was no category of
land use being determined because it was not compulsory to do so under the
previous land law. With the enforcement of NLC, such land that falls under
the class of country and town or village land that are held under Land Office
Title are to be used as agriculture land, whereas town or village land that are
held under the Registry Title must not be used for agriculture or industry. Any
land that has been determined the land use before NLC will continue having
the same use with the enforcement of NLC.

In some cases where the application of land was

approved before NLC but alienated under NLC
with unspecified land use, for country land, the
use must be solely for agriculture. For village or
town land the use must be for other than
agriculture and industry when NLC came into
enforcement.
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2.12.2 Expressed Conditions

Expressed conditions are restrictions or conditions imposed by the State

Authority in order to control the proper usage of land and are written on the
document of title. Examples of expressed conditions are:
(a) The alienated land shall only be constructed with a single dwelling,
(b) The alienated land shall not be planted with or be allowed to grow with
rubber trees,
(c)

All land is subject to the expressed conditions that are endorsed on the
document of title. Any breach on the expressed conditions will result in the
ownership of land be terminated. Expressed conditions may be amended or
rescind on application by the proprietor.

2.12.3 Implied Conditions

Implied conditions are also restrictions on land use. The difference between
expressed conditions and implied conditions are that implied conditions:
Are stated on the document of title, they are only written in the law,
Are not imposed by the State Authority but are merely the
requirements of law,
Cannot be amended or nullify except by amending or nullifying the
law.

Any breach on the implied conditions will also result in the ownership of land
be terminated.

To find out about the implied

conditions on various categories
of land use, please refer to
sections

2.12.4 Restrictions In Interest

Restrictions in interests are restrictions or limitations on the rights of

proprietors that are imposed in order to guard the interests in land. For
example:

All land is subject to the restrictions of interests that are stated in the document
of title. Restrictions in interests may be imposed, amend or rescind.
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Activity 2e

Time for another

activity!

2.18 Identify the items that may be accomplished by a land proprietor at the
.
a) Amending land use category _____

b) Imposing land use category _____

c) Rescinding expressed conditions _____

d) Amending expressed conditions _____

e) Imposing new expressed conditions _____

f) Rescinding implied conditions _____

g) Amending implied conditions _____

h) Imposing implied conditions _____

i) Rescinding restrictions in interests _____

j) Amending restrictions in interests _____

k) Imposing restrictions in interests _____

l) Rescinding such or other similar terms ____

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Feedback to Activity 2e

2.18 a)
b)
c)
d)
e)
f) -
g) -
h) -
i)
j)
k)
l)

Congratulations !!! you have

finished with all the inputs and

more hurdle to -
have a look at it
now!!!
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KEY FACTS

1. The State Authority may alienate state land in perpetuity or for a period not
exceeding 99 years.
2. There are two methods of alienation namely planned and unplanned
alienation.
3. The persons and bodies to whom land may be alienated is listed under Section
43 of the NLC 1965
4. There are two forms of titles namely final and qualified title. These titles can
be either Registry or Land Office Title.
5. Final and qualified title holders enjoy the same rights except that qualified title
holder cannot sub-divide, partition or amalgamate the land and sub-divide any
building on the land.
6. To prevent misuse of the alienated land, the NLC has imposed categories of
land use, expressed conditions, implied conditions and restrictions in interests
on the alienated land (where applicable).
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Self-Assessment 2

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 explain the process of unplanned alienation.

2. Briefly describe categories, expressed conditions, implied conditions and

restrictions in interest.
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Feedback To Self-Assessment 2

1. The process of unplanned alienation can be summarized as follows:

i. The applicant submits the application using the form specified by the
Land Office together with the plan and particulars of the said land and
fees payable.
ii. The Land Office will refer the application to the relevant departments
for their comments.
iii. The Land Administrator will forward the application to the State
Authority with the recommendation for or against the approval of the
application.
iv. The Executive Council will decide on the approval of the application
and the applicant will be informed of this decision.
v. If the application is approved, the applicant will have to pay all the fees
specified.
vi. The subject land will be surveyed either by the Survey and Mapping
Department or a licensed surveyor.
vii. A registered title will be issued to the proprietor.

2. a) Categories:

Category of land is an item imposed by the State Authority to control

the use of alienated land. The categories of land use for any alienated
land can either be one of the followings:
a) Agriculture, or
b) Building, or
c) Industry

b) Expressed conditions:

Expressed conditions are restrictions or conditions imposed by the

State Authority in order to control the proper usage of land and are
written on the document of title. Examples of expressed conditions are:
a) The alienated land shall only be constructed with a single
dwelling,
b) The alienated land shall not be planted with or be allowed to
grow with rubber trees,
c)
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All land is subject to the expressed conditions that are endorsed on the
document of title.

c) Implied conditions:

Implied conditions are also restrictions on land use. The difference

between implied conditions and implied conditions are that implied
conditions:
Are stated on the document of title, they are only written in the
law,
Are not imposed by the State Authority but are merely the
requirements of law,
Cannot be amended or nullify except by amending or nullifying
the law

d) Restrictions in interest:
Restrictions in interests are restrictions or limitations on the rights of
proprietors that are imposed in order to guard the interests in land.