Land As Collateral: Land Charges – Liens – Caveats

16 Jul, 2018, Seri Pacific Hotel

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PROF. DATO’ SALLEH BUANG formerly served as a Federal Counsel in the Attorney-General’s Chambers, Kuala Lumpur (1970-75), before he left for private practice, then the corporate sector and finally the academia. He was The Deputy- Dean, Kulliyyah of Laws, and International Islamic University until 1990, when he went into full-time consulting.

Over the last 3 decades, he had conducted numerous workshops, seminars, corporate briefings and courses covering land law, housing development, construction law, joint ventures and planning law. Author of more than 25 books and monographs on a wide range of legal topics, he now writes for his weekly column in Utusan Malaysia, New Straits Times and Berita Harian.

Until 2013, he was a Visiting Professor at the Faculty of Geoinformation and Real Estate, UTM, Johor. He is currently a Member of the Board of Trustees of the Kuala Lumpur Foundation to Criminalise War (KLFCW).

 

Venue Details

Seri Pacific Hotel
Jalan Putra, 50350 Kuala Lumpur,
Phone : 03 4042 5555

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Contact us

Juliany,
03 2283 6109
juliany@ipa.com.my

Phoebe,
03 2283 6100
phoebe@ipa.com.my 

FOR CUSTOMISED IN-HOUSE TRAINING
Jane,
03 2283 6101
Jane@ipa.com.my

ADDRESS 
A-28-5, 28th Floor, Menara UOA Bangsar, 
No.5, Jalan Bangsar Utama 1, 
59000 Kuala Lumpur
www.ipa.com.my

FOCUSING ON
  • Overview of NLC 1965 & recent amendments
  • Titles, forms and registration – Indefeasibility
  • Security of tenure – fraud in land transactions
  • Land charge of Malay reserve land
  • Judicial activism regarding liens
  • Can the caveat system be simplified?
OBJECTIVES

There are three aspects of land ownership – one, as a source life or sustenance; two, as a commodity to be traded; three, as capital or source of capital. This one day intensive course deals with the third aspect.

 

Property owners who seek loans from banks or financial institutions are invariably required by the latter to hand over their properties as security or collateral for such loans. According to standard conveyancing practice, which is governed in Peninsular Malaysia by the National Land Code 1965, property owners are required either to execute a land charge over their properties in favour of these banks or surrender their titles by way of a lien, whereupon the banks will then enter a lien-holder’s caveats over these properties. The land charge or lien will remain in effect until the loan has been repaid.

 

This one day course will deal with the substantive law and the relevant procedures of these land transactions and highlight (through case studies) the remedies available to the lending institutions in the event that their borrowers default in repayment. The course concludes with a discussion on the caveat system and the need for the system to be simplified.

WHO SHOULD ATTEND
  • Property Developers
  • Contractors
  • Contract Managers & Executives
  • Contract Administrators
  • Architects
  • Engineers
  • Quantity Surveyors
  • Construction Managers
  • Town Planners
  • Legal Advisors
  • Lawyers
  • Project Managers
  • Property Managers
  • Owners
  • Bankers
  • Financiers
  • Investment Advisors
  • Development & Planning Managers
  • Project Coordinators
METHODOLOGY

Interactive Lectures, Discussions and Practical Case Studies on all relevant areas to ensure participants grasp clearly issues presented.

COURSE OUTLINE
9:00 SESSION ONE
  • The Malaysian Torrens System – “the register is everything”, strength and weakness, transition from paper to digital, from manual to electronic
  • Overview of the National Land Code 1965, recent developments, Act A1516
  • The State Authority – disposal of state land via alienation & otherwise, freehold and leasehold, land titles, categories of land use, express and implied conditions, TOL, squatters
  • Definition of “land” – underground land (stratum), above ground land (spatium), land reclamations, idle land, co-proprietorship
  • Land dealings under NLC – transfers, leases & tenancies, charges & liens, easements
  • Land dealings – under customary law & equity, Malay reserve land
  • Security of tenure – fraud in land transactions, the Assurance Fund, compulsory land acquisition
10.45 SESSION TWO
  • Dealing with bankers – security for loans, charges and liens over land titles, debenture over company assets, Board of Directors’ guarantees
  • Land charge – under NLC, the Charge Annexure, equitable land charge, deed of assignment (if no title)
  • Land charge under customary law – jual janji, jual putus
  • Borrower’s default – lender’s remedies, foreclosure proceedings, can borrowers challenge?
  • Sale – by public auction, by private treaty
  • Case study
1:00 Lunch

2.00 SESSION THREE
  • Lien – elements, at common law, under NLC
  • The procedure – hand over IDT to bank, lodge a lien-holder’s caveat
  • Rise of the “super caveat” – Mercantile Bank v Official Assignee
  • Quantum leap in Standard Chartered Bank v Yap
  • Case study
3.45 SESSION FOUR
  • Restraints against dealings – express conditions, Malay reserve land, caveats, prohibitory orders
  • Nature and functions of a caveat
  • Types of caveats and duration – private, lien- holder’s, trust, Registrar’s
  • Application to lodge a caveat – application to remove a caveat
  • Remedies for entry of a wrongful caveat
  • Case study
  • Summing up, recommendations
5:00 End of Course