FACULTY OF BUILT ENVIRONMENT

Course Code & Title: ATGB2242 Principles of Malaysian Land Law

Exercise 5

Differentiate between the terms:

Q1. “Lease” and “Tenancy”

LEASE TENANCY
Renting of land to have the benefits in return for payment of a money
For a term more than 3 years For a term up to 3 years
A lease is to be registered under NLC A tenancy is exempted from registration
under NLC
Effect: Registration results in the lease to be Effect: If a 3rd party is buying the land or
endorsed on the title deed and therefore, in the creating a charge, such person may not know
Register of Title about the tenancy which is not registered in
the title deed and Register of Title
A lease that is not registered is said to be void Tenancy agreement is valid under contract
under the NLC. But valid under contract law law
Enjoy exclusive possession
He will have a registered interest which will If the tenant fail to do this, such tenancy
have priority over any unregistered interest would not bind any subsequent lessee, sub-
over the person having the tenancy or an lessee, tenant, chargee or lien-holder
unregistered lease may otherwise have

Q2. “Licence” and “Lease”

LICENCE LEASE
Licence does not create an interest in land Lease creates an interest in land
Licence has no exclusive possession Lease has exclusive possession
Licence only for permitted use/authorized Lessee is capable of enforcement against
entry landlord’s successor
FACULTY OF BUILT ENVIRONMENT
Course Code & Title: ATGB2242 Principles of Malaysian Land Law

Q3. “Positive Easement” and “Negative Easement”

Positive Easement – allows the proprietor of the dominant land to do something in, over or upon
the servient land

Example:
- The right to cross the owner’s land to get to and from neighboring property (often called a
right-of-way)
- The right to install and maintain power lines, water pipes, and sewage systems on and under
the servient land

Negative Easement – which give the easement holder (dominant land) the right to requires the
proprietor of the servient land to restrain or control from doing something which would interfere
with the enjoyment of the dominant land

Example:
- To restrain development of property in servient land in order to preserve the easement
holder’s access to light and air on his nearby property (such as not building a structure more
than one story high)
- To restrain development of property in servient land in order to preserve the easement
holder’s view (blocking a mountain view)

Q4. “Charge” and “Lien”

CHARGE LIEN
Charge is an agreement to pay a debt in a A lien is a legal document that prevents sale,
specified tied under specified terms usually of a property until the debt is satisfied
Charge arises when one person takes money lien is a type of security interest created over
from another as debt and gives his immovable an immovable property in order to secure the
property as a security for the repayment of that payment of a debt
money so as to get discharged from the debt
Charge can form by the act of parties or by the Lien arises by operation of law only
operation of law
Legal remedy for charge holder is by way of A lien holder can make a private sale of
selling property for realizing money charged property for getting the money back and
upon it by way of debt thereby debt is discharged
FACULTY OF BUILT ENVIRONMENT
Course Code & Title: ATGB2242 Principles of Malaysian Land Law

Q5. “Private Caveat”, “Registrar Caveat”, “Trust Caveat” and “Lien-holder’s Caveat”

Private caveat
- Lodged by any private person or body who has caveatable interest in relation to the land. To
protect the unregistered interest

Registrar Caveat
- To prevent fraud or improper dealing and to protect the interest of federation or state
- To protect interest of minor, mental disorder and unsound mind
- While pending rectification when there is an error on RDT or IDT

Trust Caveat
- Entered by Registrar in respect of any land or interest which is expressed to be held by any
person or bodies as trustees

Lien-holder’s Caveat
- Lodged by any person with whom the document of title is deposited as a security of a loan

End of Question Paper