Abstract
Under the Torrens system, section 340 (1) of the NLC only gives the indefeasibility upon the registered proprietor. Fraud, misrepresentation, forgery, insufficient or void instrument and unlawful acquisition are the exceptions to the indefeasibility provided in section 340(2) of NLC. Under section 340(3)(a) or (b) of NLC, the person whose title is defeasible, if he had made a subsequent dealing on the land, the new proprietor’s title still defeasible. The new proprietor will only get the protection under the proviso to section 340(3) of NLC if he can prove that he is a good faith purchaser. The proviso to section 340(3) applies only to the subsequent transferee and not the first transferee. The purpose of this article is to identify the criterions used by the courts in categorizing that person as bona fide purchaser, the position and the remedy of the bona fide purchaser in land matters. The methodology used in this study is a library based research which includes document analysis, such as the decided cases, book and articles. This study also discusses some suggestions for improvement and outcome to ensure the interests and rights of the parties involved.
Highlights
Indefeasible concept of title to land applied when the proprietor registered his title according to the provision of the NLC. Sharifah Zubaidah (2008) stated in her article that indefeasibility can be obtained once registered and it cannot be challenged in any court unless it is coming under the circumstances laid down by section 340(2) of the NLC 1965
The trial judge decided that the first defendant was a good faith purchaser, and applying the wrong explanation of section 340 of NLC in Adorna Properties Sdn Bhd v Boonsom Boonyanit [2001] 1 MLJ 241, where Adorna was entitled to indefeasible title
Similar principle decided by the Federal Court in the case of Letchumanan Chettiar Alagappan @ L Allagappan & Anor v Secure Plantation Sdn Bhd [2017] 4 MLJ 697, where the immediate purchaser was not entitled to rely on the proviso in section 340 of the NLC
Summary
Indefeasible concept of title to land applied when the proprietor registered his title according to the provision of the NLC. Sharifah Zubaidah (2008) stated in her article that indefeasibility can be obtained once registered and it cannot be challenged in any court unless it is coming under the circumstances laid down by section 340(2) of the NLC 1965. Indefeasible concept of title to land applied when the proprietor registered his title according to the provision of the NLC. Sharifah Zubaidah (2008) stated in her article that indefeasibility can be obtained once registered and it cannot be challenged in any court unless it is coming under the circumstances laid down by section 340(2) of the NLC 1965. Lim Chong Yean & another Appeal [2018] 3 CLJ 89, it was stated that the second defendant, as a registered owner had obtained the protection of title under section 340 of the NLC. Grace (2011) stipulated that only the www.psychologyandeducation.net registered proprietor of that land entitled to have indefeasibility of title under the Torrens system
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