Property Law
This domain tests the legal foundations of Malaysian real property: the Torrens register under the National Land Code 1965, contractual formalities, statutory housing controls and the lease-tenancy distinction.
Registered title and dealings
The National Land Code is a registration system. Title and interests pass on registration, not on contract or payment. A transfer uses the prescribed form, Form 14A; charges, leases and easements have their own forms. Priority follows the order of registration. Unregistered interests are generally ineffective, but short tenancies not exceeding three years are exempt from registration, and caveats protect equitable claims.
Contracts and housing law
A land contract must be in writing and supported by consideration. For residential property built by a licensed developer, the Housing Development (Control and Licensing) Act 1966 and its regulations impose statutory sale and purchase agreements, Schedule G for landed and Schedule H for stratified property. These fix the defects liability period at 24 months and provide liquidated damages for late delivery. Subsales remain largely contractual, with caveat and specific performance as remedies.
Strata and restrictions
The Strata Titles Act 1985 and Strata Management Act 2013 govern strata titles, share units and common property. Transfers of leasehold land, and dealings affected by a restriction in interest, need state authority consent. A lease exceeding three years must be registered; a tenancy of three years or less need not be.
Worked example
A buyer signs a subsale contract, pays a 10% deposit and the seller later refuses to complete. The buyer's contract claim is strengthened by lodging a private caveat to protect the equitable interest and give notice. If the seller still refuses, the buyer may sue for specific performance, with damages as an alternative. Reasoning: the caveat does not create title, but it preserves priority and blocks a clean transfer to a third party.
Traps
- Thinking payment of the price transfers title.
- Failing to register a lease longer than three years.
- Missing state authority consent for a leasehold transfer.
- Using a non-statutory sale form for a licensed housing development.