1. REM 159
LAW OF PROPERTY
CHAPTER 6
CONDITIONS AND RESTRICTION.
2. LEARNING OUTCOMES
At the end of this topic students are expected to be
able to:
Ability to understand the concept of condition and
restriction under National Land Code (NLC) 1965
Ability to differentiate express condition, implied
condition and restriction in interest.
4. INTERPRETATION - AGRICULTURE
Sec 5, NLC 1965
"agriculture" includes the cultivation of any crop
(including trees cultivated for the purpose of their
produce), market gardening, the breeding and
keeping of honey-bees, livestock and reptiles, and
aquaculture;
5. IMPLIED CONDITION – AGRICULTURE LAND
Section 115 (1)
(1) Where any alienated land is subject by virtue of any
provision of this Act to the category "agriculture", the
following implied conditions shall, subject to sub-section (3),
apply thereto-
(1) no building shall be erected on the land other than a building or
buildings to be used for one or more of the purposes specified in
subsection (4);
(2) a bona fide cultivation of the land shall commence on the land
within 12 month of the relevant date, i.e. the date the land is
made subject to the category of agriculture
(3) the whole area of the land, other than any part thereof which is
occupied by or in conjunction with a dwelling house is brought
fully under cultivation within three years of the relevant date
(4) the area of the land shall be maintained and cultivated according
to the rules of good husbandry; and
(5) The area shall be continuously cultivated:
6. IMPLIED CONDITION – AGRICULTURE LAND
Section 115 (4)
The purposes referred to in paragraph (a) of sub-section
(1) are the following-
Dwelling house for the proprietor or his servants engaged in
agricultural work (provided that the size of the area so utilized
shall not exceed 1/5th of the land or two hectares whichever is
lesser)
Extracting or processing raw material from any agricultural
produce
Preparing for distribution any such material or produce, or any
livestock or fish, or the produce of any livestock
Providing educational, medical, sanitary or other welfare
facilities
Any other purpose which the SA may deem fit to authorize in
the circumstances of any particular case
8. IMPLIED CONDITION – BUILDING LAND
Section 116 (1)
a building must be erected on the land within two years of
the relevant date, i.e. the date the land is subject to that
category;
no part of the land shall be used for agriculture or
industrial purposes;
every building thereon shall be maintained in repair;
no such building shall be demolished, altered, or
extended without the prior consent in writing of the
appropriate authority
9. IMPLIED CONDITION – BUILDING LAND
Section 116 (4)
The permitted purposes for which a building can be
erected on the land are
residential purposes
administrative or commercial purposes
purpose of exhibiting, selling by retail, repairing or
otherwise dealings in any goods or commodities, or of
providing any services
purposes of providing any educational, medical, sanitary
or other welfare facilities
purposes of entertainment, refreshment or recreation
any other purpose deemed fit by the state authority
10. INTERPRETATION - INDUSTRIAL
Sec 5, NLC 1965
"industrial purposes" has the meaning assigned
thereto by paragraph (a) of sub-section (1) of section
117;
11. IMPLIED CONDITION – INDUSTRIAL LAND
Section 117 prescribes that the lands shall be used
only for industrial purposes, for the purposes of
erection or maintenance of factories, workshops,
foundries, warehouses, docks, jetties, railways or
other buildings or installation for use for, or in
connection with, one or more of the following
purposes :
manufacture
smelting
the production of power
the storage, transport or distribution of goods or other
commodities
such other purposes as may be prescribed by the State
Authority
12. IMPLIED CONDITION – INDUSTRIAL LAND
Section 117 also prescribed that
industry shall commence its operation within three years
of the relevant date
every building or installation erected thereon shall be
maintained in repair.
no such building or installation shall be demolished,
altered or extended without the prior written consent of
the appropriate authority
13. Lands Alienated before NLC
Section 53 provides until a category of land
imposed under section 54, the land shall be
subjected to implied conditions as follows :
Country, town or village land under Land Office title,
will be subjected to an implied condition for
agricultural purposes
Other land (town & village land) under Registry titles
will be subjected to an implied condition that it shall
not be used either for agricultural or industrial
purposes
Case Garden City Development Berhad v
Collector of Land Revenue, Federal Territory
14. Express Conditions &
Restrictions in interest
Section120
Empowers State Authority to impose express
conditions & restrictions in interest
These condition and restrictions are determined by
the SA at the time the land is approved for alienation
Must be endorsed on or referred to in the document
of title of the land
15. PENGARAH TANAH DAN GALIAN,WILAYAH PERSEKUTUAN
v. SRI LEMPAH ENTERPRISE SDN. BHD [1979] 1 M.L.J 135
The Respondents owned a piece of land in the Federal
Territory, held in perpetuity. The Company had applied to
the authorities for sub-division and conversion of their
land for the purposes of constructing a hotel thereon.
Approval was given subject to the conditions, inter alia,
the respondents must agree to accept back a lease for
99 years in exchange for their Property.
The company rejected the conditions and applied to the
High Court for an order that the authorities approve their
application subject to the usual terms and condition.
The Federal Court upheld the decision
16. Express Conditions &
Restrictions in interest (cont’d)
Determined by State Authorities at time of alienation
Must be endorsed on or referred to in the document of
title
May require continuous performance or subject to fixed
term
Bind with land
Bind with the Proprietor
If in conflict with Local authority by-laws, conditions shall
prevail
Every condition or restriction in interest commence from
the date of alienation
17. Dr. Ti Teow Seow & Ors. v. Pendaftar Geran-Geran
Tanah Negeri Selangor (1982) 1 MLJ 38
Restriction in interest “could not be transferred or
leased for 15 years without the consent of the
Ruler in Council
Date of commencement of title-18/8/1964
Date of alienation-9/11/1967
Sold the land-25/3/1980
MOT executed -5/5/1980
Registration of MOT rejected-restriction in
interests still subsisting
18. Dr. Ti Teow Seow & Ors. v. Pendaftar Geran-Geran
Tanah Negeri Selangor (1982) 1 MLJ 38
S. 78(3) NLC
“ The alienation of State land shall take effect upon the
registration of a register document of title
thereto…and, notwithstanding that its alienation has
been approved by the State Authority, the land shall
remain State land until that time.”
19. Breach of Conditions
Section 125
Divided into 2 :
Non-payment of quit rent
The breach of implied or express conditions
if any condition consists of two or more separate
obligation or liabilities-failure to fulfill any of those
obligation or liabilities shall constitute a breach of
condition
20. LIABILITY TO FORFEITURE
FOR BREACH OF CONDITION
S127-Any breach of any condition to which
alienation land is subject –become liable to forfeiture
to the State Authority
21. EFFECTS OF FORFEITURE
Section 131
The land shall revert to and vest in, the State
Authority as State land, freed and discharge from
all titles and interests subsisting
Shall also vest in the State Authority, without
payment of compensation, any building existing
on the land
Any item of land revenue then due to the State
Authority in respect of the land shall be
distinguished
22. OPTIONS TO FORFEITURE
By an amendment in March 25, 1985 the SA has two
more courses of action
S127(1A) &(1B)-Imposing a fine on the Proprietor
not less than RM500 and in the case of a continuing
breach, a further fine of not less than RM100 for
each day during which the breach continues
S129(4) State Authority can take temporary
possession of the land with a view to remedying the
breach itself at the State expenses.
23. FORFEITURE
In any case, if the Proprietor has been able to
remedy his breach in due time after being notified by
the State Authority, forfeiture proceedings will not be
continued against him
Forfeiture shall take effect upon notification in the
Gazette.
Land administrator as soon as may be after the
notification is published, register or cause to be
registered a memorial thereof