The document discusses tenancy exempt from registration (TXR) under Section 213(1) of the National Land Code. TXR refers to a letting of land for a period not exceeding 3 years that is not required to be registered. The document outlines different types of TXR and how a tenant can protect their interest in a TXR by endorsing it on the land title register before the landlord transfers the land. Failure to endorse means the tenant's interest is not binding on future owners.

1. TENANCY EXEMPT FROM
REGISTRATION (TXR)
SECTION 213(1)

2.  Tenancy is a letting of land for a period not exceeding three (3)
years.
 It is not a registrable interest.
 It is also known as “tenancy exemptfrom registration”,
meaning it is not capable of being or required to be registered.
 May be granted in weekly, monthly or yearly basis subject to a
maximum period of three (3) years.
 May be created in writing or orally.
 A person who lets the land is called a landlord while the
person who accepts the tenancy is called the tenant

3. Types of tenancy
a. Periodic tenancy
- maximum period of tenancy is 3years.
- it is granted from week to week, month
to month basis
- continues definitely

4. ..continue
b. Tenancy at will
- tenant holds over the tenancy after
expiry of the tenancy with the
permission of landlord.
- It will converted to periodic tenancy
when tenant pays and landlord
accepted the rent

5. …continue
c. Tenancy at sufferance
where tenant holds over the tenancy after
expiry of the tenancy without the
permission of landlord.

6. ….continue
d. Tenancy by estoppels
- landlord has no title to or interest in the
land but grant tenancy over the same
to tenant
- tenant is estopped during tenancy period
to deny that landlord has no title to the
land
- Tenant is estopped from denying his
obligations under the tenancy

7. …continue
e. Tenancy coupled with Equity
- where tenant takes possession of the
land under the expectation or
encouraged by the landlord that tenant
would have certain interest in the land.
- tenant expends money upon the land
on the faith of the expectation
- The landlord is estopped from denying
that expectation

8. Endorsement
 Since registration is TXR is not required
under the NLC, how does a tenant protect
his interest in the land against future
dealings?

9. Sec. 213(3)
 This section, inter alia reads as follows:-
 No TXR shall be binding on any person or
body to whom the landlord subsequently
transfers the land to:
 Unless endorsement has been made on the
register document of title;
 Endorsement was made prior to the transfer.

10.  Therefore, a tenancy exempt from
registration may be protected:-
 By way of an endorsement on the RDT;
 By the tenant;
 Before the future sale is entered into by the
landlord;
 Once endorsement is perfected, tenancy
binds any subsequent purchaser of the land.

11. What if the tenant fails to endorse his
tenancy against the title?
 The tenant’s interest over the tenancy will not
be protected.
 As a consequence, if the landlord decided to
sell the house, the landlord may just serve
notice to vacate to the tenant as and when
he likes.
 Once notice is served, tenant must vacate
the land.

12. Than Kok Leong v. Low Kim Hai (1983)
1 MLJ 187
 A sold land to B. at the time of the
purchase, C was the tenant of the premises.
B served C a notice to quit but was ignored
by C. since C failed to endorse his tenancy,
his interest as a tenant was not binding to B
and he has to vacate the premises.

13. Hotel Ambassador
 Failure to endorse the tenancy, its interest as a
tenant was not binding on the subsequent
purchaser.
 Facts: A, a lessee of a building carrying on a
business of a hotel
 B Bank obtained an order for sale of the land and
building
 C purchased the land and building and asked vacant
possession from A
 A failed to endorse tenancy, they have to surrender
possession to C

14. How is endorsement made?
 Sec. 316 – application for endorsement
 Apply to the registrar for endorsement on RDT
 No statutory form available but application can be
done in writing
 If the tenancy relates only to a certain part of the
land, the tenant must attach a plan and description
of the tenancy.
 If the land is subject to a charge created by the
landlord, a consent letter from the chargee bank
shall first be obtained.

15. Sec. 317 - procedure
 On receiving the application, the Registrar shall:-
 Note the time it was received;
 Make a note on the Presentation Book of the time
received;
 Endorsement with “Exempt tenancy claimed” made
on RDT;
 Reject if there has already been a registration of a
transfer of the said land (proprietor charges)
 Reject if no consent of chargee bank obtained, if
relevant;
 Sign and seal endorsement.

16. … continue
 If application is rejected, the registrar shall
return the application and note the rejection
in the Presentation Book.

17. Cancelled of endorsement – sec. 318
 The registrar may cancel any endorsement:
- By court order
- Upon expiry of the tenancy.
The Registrar shall endorse against the
cancelled endorsement, note of the date of
cancellation and the reason therefore.