Category: Land Law

FEDERAL COURT CLARIFIES ‘COMMUNICATION’ UNDER NLC: INFORMAL NOTICE NOT ENOUGH TO TRIGGER TIME LIMIT

In Lee Kean Choon v Khoo San & Ors [2026] 1 MLJ 936, the Federal Court held that the phrase “communicated to him” under section 418 of the National Land Code requires formal written notification by the Land Office, not mere informal awareness. The Court ruled that time for appeal only begins upon proper service of the decision, and not when the appellant is casually informed. As the appellant was never duly notified of the partition application or approval, the entire process was vitiated for breach of statutory procedure and natural justice. The decision reinforces that strict compliance with notice requirements is fundamental in land administration matters.

PROPERTY LAW – CHARGED BUT NOT IN CHARGE: COURT PROTECTS HOMEBUYERS OVER LENDERS IN LANDMARK RULING

In Champion Score Sdn Bhd v Mohd Sobri Chew bin Abdullah [2025] 3 MLJ 732, the Court of Appeal robustly affirmed that developers, having received full payment, become bare trustees without power to encumber properties. The Court decisively canceled an improperly created charge, emphasizing that financial institutions must diligently scrutinize developers’ authority under powers of attorney. This landmark decision highlight judicial commitment to protecting homebuyers, reinforcing statutory and public policy safeguards against developer misconduct.

LAND LAWS – FEDERAL COURT SHIELDS BANKS – NO EXTRA HOMEWORK REQUIRED IN LAND LOANS!

In a landmark ruling, the Federal Court in Malayan Banking Bhd v Mohd Affandi bin Ahmad & Anor [2024] 6 MLJ 220 has reaffirmed that banks are not obligated to investigate past transactions beyond the land register before granting a loan. The case, which involved a dispute over land ownership and mortgage validity, clarified that under the Torrens System, a bank conducting a proper land search can rely on the registered title unless fraud is proven. This decision strengthens protection for lenders, ensuring that financing transactions remain efficient and commercially practical without the burden of additional due diligence on prior dealings.

LAND LAW – PROPERTY SOLD TWICE: OWNERSHIP NOT TRANSFERRED IN FIRST SALE

This legal update examines the Court of Appeal’s decision in Malayan Banking Bhd v Mohd Affandi bin Ahmad & Anor [2024] 1 MLJ 1, which reaffirmed the binding nature of valid Sale and Purchase Agreements (SPAs) and the establishment of constructive trust. The court dismissed claims of deferred indefeasibility by subsequent purchasers and a chargee bank, emphasizing the critical importance of due diligence in property transactions. The decision serves as a cautionary tale for financial institutions and vendors, reinforcing the need for meticulous compliance with legal and equitable obligations.

LAND LAW – TRUST – WHEN TIME AND TRUST RUN OUT – PROPERTY OWNERSHIP DISPUTES AND THE DOCTRINE OF LACHES

Illustrative Scenario X and Y are siblings. In 1980, their father started a sundry shop business and used the earnings to purchase a piece of land, which was registered in their mother’s name for plantation purposes. X worked at the sundry shop for six years without receiving any salary. As a result, the mother transferred […]

LAND LAW – FORGERY OF SIGNATURE OF THE VENDOR ON TRANSFER DOCUMENTS – SIGNATURE EXPERT

I have just discovered through a land search that my property was no longer registered in my name. What can I do?