TASK 3

1) Awang Kelana Would like to make a gift inter vivos of an undivided half interest in
his land under QT(M) 115 Lot No 131 Mukim of Ampang, Kuala Lumpur to his wife
Cinta Suci. He therefore intends to execute a memorandum of transfer in undivided
equal shares. Awang Kelana however concerns whether his action will contravene any
provisions of the National Land Code. Advise Awang Kelana.
Answer :
Issue- whether Awang Kelana action will contravene any provision of the National and Code?
Section 214(1) listed what may be transferred, there are the whole, but not a part only, of any
alienated land, the whole, but not a part only of any undivided share, or any alienated land,
any lease, any charge and tenancy exempt from registration. Section 214(2) stated that power
to transfer are subject to any other written law, restriction in interest and consent from lessee
or chargee. 214(3) prohibits transfer of lease or a charge to two or more persons or bodies as
trustees or representatives.
Awang Kelana Would like to make a gift inter vivos of an undivided half interest in his land
under QT(M) 115 Lot No 131 Mukim of Ampang, Kuala Lumpur to his wife Cinta Suci. He
therefore intends to execute a memorandum of transfer in undivided equal shares. Awang
Kelana however concerns whether his action will contravene any provisions of the National
Land Code.
The conclusion is, Awang Kelana have no rights to transfer the undivided equal shares due to
the QT(M) status. The land of qualified title normally issue after initial alienation by the state.
The land of actual area and boundary has yet been subject to formal survey. The land cannot
be subdivided, partition or amalgamation.

2) Borhan is the registered proprietor of a commercial building in Setapak. In 2009, he

leased out the second level of the buiding to Mesra Sdn Bhd. (Mesra) for 5 years.
They signed a lease agreement and the lease is registered. Borhan also rents out an
office on the 3rd level of the buiding to Haris for 2 years with an option to renew for
another year. Advise Borhan on the difference, if any, between his dealing with Mesra
and his dealing with Haris.

Answer :
Issue - Whether Borhan able to lease his second level of commercial buiding to Mesra
Sdn Bhd for 5 years?
By virtue of section 5, lease simply means a registered lease or sublease of an
alienated land Thus, lease must be registered to be effective. Once registered, a lease
creates a legal interest in the land, enforceable against third party and enjoys protection
within the terms of legislation. Based on section 221(1) a proprietor of any alienated land
can grant a lease by wholly or partly. Section 221(2) stated that every lease must be for a
term exceeding 3 years. Maximum term to grant lease by section 221(3) are, leasing of
the whole piece of and for 99 years and leasing of part the land for 30 years.
In the case Margaret Chua [1961] MLJ 173, although the agreement for a lease for 25
years was void for lack of registration, but it was valid as an agreement for a lease
enforceable in equity.
Borhan is the registered proprietor of a commercial building in Setapak. In 2009, he
leased out the second level of the building to Mesra Sdn Bhd for 5 years. They signed a
lease agreement and the lease is registered.
The conclusion is, Borhan able to lease his second level of commercial building to Mesra
for 5 years due to both of them have signed a lease agreement and the lease is registered.
By virtue of section 5, once registered, a lease creates a legal interest in the land. Besides
that, Borhan lease his building to Mesra for 5 years, based on section 221(3) maximum
term to grant lease of part the land is for 30 years. So, Borhan have a rights to lease his
part of building to Mesra.

Issue whether Borhan can rents out an office on the 3rd level of the building to Haris for
2 years with an option to renew for another year?
Tenancy Exemper From Registration means any tenancy or sub-tenancy not exceeding 3
years. Its not capable of registration by section 213 (2)(b). Based on section 213(3), a
tenants right shall be protected and bind the new owner only if the tenancy is protected
by endorsement.
In case Than Kok Leong v Low Kim Hai [1983] 1 MLJ 187, court held that a TER does
not bind a subsequent purchaser unless a prior to the sale and transfer, an endorsement of
the tenancy had been made under section 213(3)
Borhan also rents out an office on the 3rd level of the building to Haris for 2 years with an
option to renew for another year.
The conclusion is, duration for tenancy is not exceeding for three years. So, Haris can rent
the office for three years.
Issue whether Borhan can lease and rent a part of his building to two different parties at
the same time?
Borhan must know the differences between lease and tenancy. Both leae and tenancy are
two different things. By virtue of section 5, lease must be registered. While tenancy
created by word of mouth or written instrument in whatever form by section 223.
The duration for lease is exceeding for three years, maximum term to grant lease of the
whole piece of land is for 99 years and lease of part of the land is for 30 years. While,
duration for tenancy is not exceeding 3 years.
Besides that, the registration for lease is by Form 15A for lease or Form 15B for sublease,
and attach a plan and description if lease of part of land. While tenancy exempted from
registration but may make endorsement to protect the TER by section 213(3).