28/04/2019
Freehold.. freehold.. freehold.. Everyone is prefer for freehold property.
Yes, a freehold estate is inheritable and the tenure is perpetuity. However, a freehold estate is always subject to Land Acquisition Act 1960. Which mean, state authority can take back your freehold estate with sufficient compensation.
The land laws of Malaysia are governed by the National Land Code, 1965 (Act 56 of 1965). Section 40 of the National Land Code, 1965 states that all state land belongs to the state authority.
When state land is disposed off by the state authority to an individual in perpetuity for an indefinite period, this land is now granted as freehold title.
However, state authority may on its own behalf acquire the land (even a freehold land) for
- public purpose
- residential, agricultural, commercial, industrial or mining purpose
- on behalf of any person or corporation-land needed/beneficial for economic development or public in general
Once declaration in Form D is published in Gazette, award of compensation has to be made by Collector of Land Revenue within 2 years.
Assessment of Compensation
· Principles laid down in First Schedule 1960 Act:-
(i) the market value of the land
- date of publication und S. 4 or publication of S. 8
- in assessing, effect of express & implied condition restricting use, prohibition shall be taken into account
(ii) increase in market value of other land of the person interested likely to accrue from the use to which the land is acquired - lower compensation may awarded
(iii) the damage likely to be sustained by person interested
(iv) whether acquisition injuriously affects his other property (immovable/movable), actual earnings
(v) reasonable expenses incurred by person interested where he is or will be compelled to change his residence or place of business
Issues Not Taken Into Consideration
1. Degree of urgency which led to acquisition be ignored-this to ensure an objective assessment;
2. Any damage sustained by person interested which, if caused by private person, would not be good cause of action. Eg damage trivial in nature, inevitable accident
3. Any depreciation in value of land likely to result from use;
4. Any increase in value of land likely to result from use;
5. Any outlay on additions or improvements incurred after date of publication unless necessary for maintenance of any building
