{"id":4965,"date":"2023-12-18T10:20:28","date_gmt":"2023-12-18T02:20:28","guid":{"rendered":"https:\/\/yhalaw.com.my\/?p=4965"},"modified":"2024-09-09T09:11:32","modified_gmt":"2024-09-09T01:11:32","slug":"overview-of-torrens-system-in-malaysia","status":"publish","type":"post","link":"https:\/\/yhalaw.com.my\/my\/overview-of-torrens-system-in-malaysia\/","title":{"rendered":"OVERVIEW OF TORRENS SYSTEMS IN MALAYSIA"},"content":{"rendered":"\n<p><strong><u>Overview of Torrens System in Malaysia<\/u><\/strong>:<\/p>\n\n\n\n<p>Malaysia&#8217;s land law and transactions are guided by the Torrens System, which ensures that the land registry accurately reflects all vital details about the land&#8217;s registered owner. As per Section 89 of the National Land Code 1965, Malaysia&#8217;s land law and transactions are guided by the Torrens System, which ensures that the land registry accurately reflects all vital details about the land&#8217;s registered owner. As per Section 89 of the National Land Code.<\/p>\n\n\n\n<p>It is important to recognize that the Malaysian Torrens System maintains the principles of equity. This system is structured to allow equity&#8217;s jurisdiction to intervene based on conscientious grounds, ensuring fair treatment.<\/p>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">Issues:<\/span><\/strong><\/p>\n\n\n\n<p><strong>Legal Issue: Status of a Buyer Who Has Paid in Full the Purchase Price:<\/strong><\/p>\n\n\n\n<p><strong>The question arises: Does a buyer who has paid the full purchase price become the beneficial owner of the property?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Upon full payment, the seller assumes the role of a &#8216;bare trustee,&#8217; legally restricted from selling or transferring the land to others.<\/li>\n\n\n\n<li>Any subsequent transfer of the property to new buyers is invalid, as the seller, being a bare trustee, lacks the legal capacity to make such agreements.<\/li>\n\n\n\n<li>Therefore, a buyer who has finalized the sale agreement and paid in full is deemed the beneficial owner, enjoying the privileges of ownership, even before official registration as the landowner.<\/li>\n<\/ul>\n\n\n\n<p><strong><u>Illustrative Scenario<\/u><\/strong>:<\/p>\n\n\n\n<p>X signed sale and purchase agreement (\u201cSPA\u201d) with Y to buy a property. When the SPA was executed, individual title for the property had yet to be issued. Having paid the full purchase price for the property, X would become beneficial owner of the property although he was not registered owner of the property, while Y would become bare trustee of the property.<\/p>\n\n\n\n<p><strong><u>Reference Cases<\/u><\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Mollie Ong Siew Choo @ Mrs Chong Kim Choy &amp; Ors v NCT United Development Sdn Bhd [2023] 12 MLJ 241 [HC]<\/li>\n\n\n\n<li>Wan Noor Kamariah bt Wan Jaafar v Aritah Realty Sdn Bhd &amp; Ors and other appeals [2021] 6 MLJ 446<\/li>\n\n\n\n<li>He-Con Sdn Bhd v Bulyah bt Ishak &amp; Anor (as administrators for the estate of Nor Zainir bin Rahmat, the deceased) and another appeal [2020] 4 MLJ 662<\/li>\n\n\n\n<li>Federal Court in Samuel Naik Siang Ting v Public Bank Bhd [2015] 6 MLJ 1<\/li>\n\n\n\n<li>Federal Court in Borneo Housing Mortgage Finance Bhd v Time Engineering Bhd [1996] 2 MLJ 12<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Malaysia&#8217;s land law and transactions are guided by the Torrens System, which ensures that the land registry accurately reflects all vital details about the land&#8217;s registered owner. As per Section 89 of the National Land Code 1965, Malaysia&#8217;s land law and transactions are guided by the Torrens System, which ensures that the land registry accurately reflects all vital details about the land&#8217;s registered owner. As per Section 89 of the National Land Code. <\/p>","protected":false},"author":1,"featured_media":4967,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1567],"tags":[2702],"class_list":["post-4965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-law","tag-property-law"],"_links":{"self":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts\/4965"}],"collection":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/comments?post=4965"}],"version-history":[{"count":3,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts\/4965\/revisions"}],"predecessor-version":[{"id":5442,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts\/4965\/revisions\/5442"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/media\/4967"}],"wp:attachment":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/media?parent=4965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/categories?post=4965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/tags?post=4965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}