Kanun Tanah Negara (Semakan 2020)
Applies to: Peninsular Malaysia and the Federal Territory of Labuan (with modifications); Sabah and Sarawak have their own land laws Ā· Official text ā
- Malaysia uses the Torrens system: ownership and interests in land come from registration in the register, not from the deed itself (s 206).
- A registered title or interest is indefeasible (cannot be set aside) except for fraud, forgery, an insufficient or void instrument, or unlawful acquisition by a public power (s 340).
- Leases over 3 years must be registered (s 221); tenancies of 3 years or less are exempt from registration and can even be oral (ss 213, 223).
- A private caveat protects a claim to land; it lapses after 6 years, and the owner can apply to remove it, starting a 2-month countdown (ss 323, 326, 328).
- A chargee (lender) enforces a charge by a court or Land Administrator order for sale after a Form 16D notice giving at least one month to remedy (ss 254, 256, 260).
- Malay reserve land is governed by separate state Malay Reservation Enactments, which prevail over the Code.
What this law covers
The National Land Code (Kanun Tanah Negara, KTN) is the main law on land in Peninsular Malaysia. The original Code (Act 56 of 1965) came into force on 1 January 1966. A revised edition, Act 828, came into operation on 15 October 2020. It consolidated earlier amendments without major changes in substance, and kept the familiar section numbers. It also applies to Labuan with modifications. Sabah has the Land Ordinance and Sarawak the Land Code.
Land matters are mostly in the hands of the states. Each state's Land Office (Pejabat Tanah) and Land and Mines Office (Pejabat Tanah dan Galian, PTG) administers alienation of land, registration, land rent (cukai tanah) and dealings. The Code covers:
- alienation of State land and conditions of use (category of land use: agriculture, building, industry);
- registration of titles and dealings: transfers, leases, charges, easements;
- tenancies, liens and caveats;
- indefeasibility of title;
- enforcement of charges (foreclosure).
The Torrens system and registration
Malaysia follows the Torrens system: the government keeps a register of every title, and what is recorded there is what counts. The register document of title is conclusive evidence that the named proprietor owns the land, subject to the Code (s 89).
- Every dealing (urusniaga), such as a transfer, lease or charge, must use the prescribed form (for example Form 14A for a transfer) and has no effect on the title until it is registered (s 206(1)).
- An unregistered agreement still works as a contract between the parties (s 206(3)), so a buyer who has signed an SPA and paid can enforce it against the seller, but does not yet own the land.
- Titles are either Registry titles (kept at the state Land Registry) or Land Office titles (kept at the district Land Office). This affects where some applications go.
- Some land carries restrictions in interest (sekatan kepentingan), for example a requirement for State consent before transfer. Check the title before buying.
Indefeasibility of title (s 340)
Section 340(1) makes the title or interest of the registered proprietor, lessee, chargee or holder of an easement indefeasible (tidak boleh disangkal), so it cannot be set aside, except in the cases listed in s 340(2):
- fraud or misrepresentation to which the proprietor or their agent was a party or privy;
- registration obtained by forgery, or by an insufficient or void instrument;
- the title or interest was unlawfully acquired in the purported exercise of a power under written law.
A defeasible title can also be set aside in the hands of a later transferee (s 340(3)), but the proviso protects a later purchaser in good faith and for valuable consideration.
In Tan Ying Hong v Tan Sian San & Ors [2010] 2 MLJ 1, the Federal Court held that a person who becomes registered directly through a forged instrument does not get an indefeasible title, even if acting in good faith; protection under the proviso is available only to a later good-faith purchaser. This overruled the earlier Adorna Properties decision and is often described as "deferred indefeasibility".
Practical point: register your title promptly, check the identity of sellers and their documents carefully, and keep your issue document of title safe. Land fraud often involves forged documents or impersonation.
Leases and tenancies
- Lease (pajakan): for a term of more than 3 years. It must be in the prescribed form and registered. The maximum term is 99 years for the whole of a lot and 30 years for part of a lot (s 221).
- Tenancy exempt from registration (penyewaan yang dikecualikan daripada pendaftaran): a tenancy of 3 years or less (s 223). It can be made orally or in writing in any form, and cannot be registered (s 213). To protect the tenancy against later dealings, the tenant can apply to the Registrar to have it endorsed on the register document of title (s 316).
Most residential rentals are tenancies of 1 to 2 years, so they need no registration, but the agreement must still be stamped: see Property and tenancy. A "2+1" renewal arrangement can raise questions about whether the total term exceeds 3 years, so take advice for long arrangements.
Caveats
A caveat (kaveat) is an entry on the register that stops dealings with the land while a claim is sorted out.
- Private caveat (kaveat persendirian) (ss 322ā323): can be entered by anyone claiming title or a registrable interest in the land, or a right to it, for example a buyer who has signed an SPA and paid a deposit, or a person claiming a beneficial interest under a trust. The application is in Form 19B, with grounds supported by a statutory declaration and a fee.
- Removal by the Registrar (s 326): the owner can apply for removal. The Registrar serves notice on the caveator, and the caveat lapses after 2 months unless the caveator gets a court order extending time.
- Removal by the court (s 327): anyone aggrieved can apply to the High Court to remove a caveat.
- Lapse (s 328): a private caveat lapses automatically after 6 years.
- Wrongful caveat (s 329): a person who enters or keeps a caveat without reasonable cause must pay compensation for the loss caused.
Other types include the Registrar's caveat, lien-holder's caveat and trust caveat.
Charges and foreclosure
A charge (gadaian) is the Code's form of mortgage. The whole of a lot, an undivided share, or a lease can be charged to secure a debt (s 241). Most home loans are secured by a registered charge to the bank.
If the borrower (chargor) defaults:
- Where the breach has continued for at least one month, the chargee serves a Form 16D notice requiring it to be remedied within at least one month, and warning that an order for sale will be sought (s 254).
- If the breach is not remedied, the chargee applies for an order for sale: to the High Court for land under Registry title (s 256), or to the Land Administrator (Form 16G) for land under Land Office title (s 260).
- The land is then sold by public auction (lelong). The proceeds pay the debt and costs, and any balance goes to the chargor.
A chargor can still settle the arrears or the full debt before the sale. Talk to the bank early. Many banks will restructure loans, and the Credit Counselling and Debt Management Agency (AKPK) can help.
Malay reserve land and other special land
Section 4(2) says the Code does not affect laws on Malay reservations (tanah rizab Melayu), customary tenure, wakaf and Baitulmal land, and several land settlement laws. Where these conflict with the Code, the special law prevails. Malay reservations are protected by Article 89 of the Federal Constitution and by each state's Malay Reservation Enactment, which generally allows such land to be transferred, leased or charged only to Malays (as defined in that enactment) and to approved bodies. A dealing in breach of these rules can be void.
Before buying land, always do a land search (carian tanah) at the Land Office or registry to check the owner, category of land use, express conditions, restrictions in interest, Malay reserve status, charges and caveats. See also the Federal Constitution.
Laws cited on this page
| Act 56 | Evidence Act 1950 Ā· Akta Keterangan 1950 | Official text |
| Act 828 | National Land Code (Revised-2020) Ā· Kanun Tanah Negara (Disemak-2020) | Official text |
Listed automatically from the federal Acts named on this page. All laws of Malaysia ā
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 4(2) | The Code does not affect laws on Malay reservations, customary tenure, wakaf and Baitulmal, which prevail if inconsistent. |
| s 89 | The register document of title is conclusive evidence of ownership. |
| s 206 | Dealings must use the prescribed forms and take effect only on registration; unregistered agreements still bind as contracts. |
| s 213 | Tenancies exempt from registration: valid orally or in writing, cannot be registered. |
| s 221 | Leases over 3 years: up to 99 years (whole lot) or 30 years (part). |
| s 223 | Tenancies of up to 3 years may be granted without registration. |
| s 316 | A tenant under an unregistered tenancy may apply to have it endorsed on the title to protect it against later dealings. |
| s 241 | What can be charged: whole lot, undivided share, or lease. |
| s 254 | Form 16D notice to remedy default, at least one month. |
| s 256 | Order for sale by the High Court (Registry title land). |
| s 260 | Order for sale by the Land Administrator (Land Office title land). |
| s 323 | Who may enter a private caveat, and how. |
| s 326 | Owner's application to the Registrar to remove a private caveat; lapses after 2 months unless extended by court. |
| s 328 | Private caveats lapse after 6 years. |
| s 329 | Compensation for wrongful caveats. |
| s 340 | Indefeasibility of title and its exceptions (fraud, forgery, void instrument, unlawful acquisition). |
Worked examples
Facts. Pak Ismail's land in Kuala Selangor is transferred to a stranger, Mr X, using a forged signature. Mr X then sells to Puan Rohani, who pays full price and knows nothing of the forgery.
The law. Mr X's title is defeasible because it was obtained by forgery (s 340(2)(b)). Under Tan Ying Hong, Mr X gets no indefeasible title. But Puan Rohani is a later purchaser in good faith for value and is protected by the proviso to s 340(3).
Outcome. Pak Ismail can recover the land from Mr X while Mr X is still registered, but probably not from Puan Rohani. He should act fast: lodge a police report, enter a caveat and see a lawyer.
Facts. Mr Chong signs an SPA to buy a shoplot in Ipoh and pays a 10% deposit. He hears the seller is talking to another buyer.
The law. As a buyer with a contractual right to the land, Mr Chong may enter a private caveat (s 323) to stop other dealings until completion. If the seller applies to remove it, the caveat lapses after 2 months unless Mr Chong gets a court extension (s 326).
Outcome. The caveat protects Mr Chong. He must have reasonable cause, or he could be liable for compensation (s 329).
Facts. Aisyah rents a shop in Melaka for 5 years under a written agreement. The owner sells the building, and the new owner wants her out.
The law. A lease of more than 3 years must be registered to bind the land (ss 206, 221). An unregistered 5-year lease operates only as a contract with the original owner (s 206(3)).
Outcome. Aisyah may have a claim against the old owner, and possibly other arguments, but should have registered the lease. She should seek advice quickly.
Facts. Encik Ahmad is 4 months behind on his housing loan. The bank sends a Form 16D notice.
The law. Form 16D gives at least one month to remedy (s 254). If he does not, the bank may seek an order for sale from the High Court or Land Administrator (ss 256, 260) and auction the house.
Outcome. Encik Ahmad should contact the bank immediately to restructure, or seek help from AKPK, before an order for sale is made.
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
What does "indefeasible title" mean?
Once you are registered as owner, your title cannot be challenged except in the cases in s 340(2): fraud or misrepresentation you were party to, forgery, an insufficient or void instrument, or unlawful acquisition under a statutory power.
Does my 2-year tenancy agreement need to be registered?
No. Tenancies of 3 years or less are exempt from registration and can be oral or in any written form (ss 213, 223). The agreement should still be stamped.
How long does a private caveat last?
Up to 6 years (s 328), unless withdrawn or removed sooner. If the owner applies to the Registrar for removal, it lapses 2 months after notice unless the court extends it (s 326).
Can the bank auction my house without going to court?
For land under Land Office title, the bank applies to the Land Administrator (s 260); for Registry title land, it applies to the High Court (s 256). Either way, a Form 16D notice giving at least a month to remedy must come first (s 254).
Can a non-Malay buy Malay reserve land?
Generally no. State Malay Reservation Enactments restrict dealings in reserve land to Malays and approved bodies, and these laws prevail over the Code (s 4(2)). Always check the title before agreeing to buy.
Does the National Land Code apply in Sabah and Sarawak?
No. Sabah has the Land Ordinance and Sarawak has the Land Code. The National Land Code applies in Peninsular Malaysia and, with modifications, Labuan.
All questions & answers ā Ā· Ask your own ā
Sources
- National Land Code (Revised 2020) (Act 828), official revised edition (copy on FAOLEX)
- Allen & Gledhill ā Revised National Land Code in operation from 15 October 2020
- Malaysian Bar Journal ā deferred indefeasibility and Tan Ying Hong
- Zul Rafique & Partners ā Tan Ying Hong v Tan Sian San & Ors
- Laws of Malaysia (official portal)
Related
Renting and buying propertyHousing Development (Control and Licensing) Act 1966Strata Management Act 2013Federal ConstitutionWills and estatesSmall Estates (Distribution) Act 1955 (Act 98)