OVERVIEW OF TORRENS SYSTEMS IN MALAYSIA

Overview of Torrens System in Malaysia:

Malaysia’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’s registered owner. As per Section 89 of the National Land Code 1965, Malaysia’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’s registered owner. As per Section 89 of the National Land Code.

It is important to recognize that the Malaysian Torrens System maintains the principles of equity. This system is structured to allow equity’s jurisdiction to intervene based on conscientious grounds, ensuring fair treatment.

Issues:

Legal Issue: Status of a Buyer Who Has Paid in Full the Purchase Price:

The question arises: Does a buyer who has paid the full purchase price become the beneficial owner of the property?

  • Upon full payment, the seller assumes the role of a ‘bare trustee,’ legally restricted from selling or transferring the land to others.
  • 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.
  • 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.
  • Illustrative Scenario:

X signed sale and purchase agreement (“SPA”) 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.

Reference Cases:

  • Mollie Ong Siew Choo @ Mrs Chong Kim Choy & Ors v NCT United Development Sdn Bhd [2023] 12 MLJ 241 [HC]
  • Wan Noor Kamariah bt Wan Jaafar v Aritah Realty Sdn Bhd & Ors and other appeals [2021] 6 MLJ 446
  • He-Con Sdn Bhd v Bulyah bt Ishak & Anor (as administrators for the estate of Nor Zainir bin Rahmat, the deceased) and another appeal [2020] 4 MLJ 662
  • Federal Court in Samuel Naik Siang Ting v Public Bank Bhd [2015] 6 MLJ 1
  • Federal Court in Borneo Housing Mortgage Finance Bhd v Time Engineering Bhd [1996] 2 MLJ 12

Recent Post

JUDICIAL REVIEW – PROCEDURAL FAIRNESS AND LOCUS STANDI

This excerpt illuminates the foundational principles of judicial review as outlined in Order 53 of the Rules of Court 2012. It highlights the criteria for challenging public decisions on grounds of illegality, irrationality, or procedural impropriety. Central to the discussion is the question of timing in judicial review applications, particularly in cases of procedural unfairness. The practical scenario underscores the significance of a “decision” by the relevant authority as a prerequisite for locus standi, drawing insights from the case of Hisham bin Halim v Maya bt Ahmad Fuad & Ors [2023] 12 MLJ 714.

Read More »

CONTRACT LAW – CONTRACTUAL INTERPRETATION REMEDIES UNVEILED: DECIPHERING CONTRACTUAL CLAUSES AND LEGAL BALANCE

This legal updates explore the principles governing the interpretation of agreements, emphasizing the importance of clarity and unambiguity in contractual terms. It delves into a key issue involving restrictions on remedies for breach of contract, shedding light on the court’s commitment to upholding plain meanings. The illustrative scenario involving shareholders X and Y dissects a pertinent clause, showcasing the delicate balance between restricting remedies and ensuring fairness in legal proceedings.

Read More »

TIME’S UP: NAVIGATING THE 12-YEAR LIMITATION

In the intricate dance of land security and loan agreements, the ticking clock of the limitation period cannot be ignored. This excerpt delves into the critical understanding of how the 12-year limitation period, as prescribed by the Limitation Act 1953, plays a pivotal role in the enforcement of property charges in Malaysia. It elucidates the start time of this countdown and its legal implications, providing a comprehensive guide for both lenders and borrowers in navigating these time-sensitive waters.

Read More »

OVERVIEW OF TORRENS SYSTEMS IN MALAYSIA

Malaysia’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’s registered owner. As per Section 89 of the National Land Code 1965, Malaysia’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’s registered owner. As per Section 89 of the National Land Code.

Read More »

FAMILY LAW – ANNULMENT OF MARRIAGE

The annulment of marriage in Malaysia is regulated under the Law Reform (Marriage & Divorce) Act 1976. A distinction is made between a void marriage, which is deemed invalid from the time of solemnisation, and a voidable marriage, which remains valid from solemnisation until annulled by the court.

Read More »
en_USEnglish
× How can I help you?