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Land Development Law Overview

This document provides an overview of key concepts relating to land disposal and related matters under Malaysian law. It defines land according to Section 5 of the National Land Code 1965, and discusses whether certain items like trees, buildings, and fences would be considered part of the land. It also explains the differences between chattels and fixtures, discussing how a chattel can become a fixture and the tests of degree of annexation and purpose of annexation. The document discusses the power of the state authority over land in Malaysia, noting that originally all land in Malaysia is owned by the state authority according to the National Land Code.

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0% found this document useful (0 votes)
29 views4 pages

Land Development Law Overview

This document provides an overview of key concepts relating to land disposal and related matters under Malaysian law. It defines land according to Section 5 of the National Land Code 1965, and discusses whether certain items like trees, buildings, and fences would be considered part of the land. It also explains the differences between chattels and fixtures, discussing how a chattel can become a fixture and the tests of degree of annexation and purpose of annexation. The document discusses the power of the state authority over land in Malaysia, noting that originally all land in Malaysia is owned by the state authority according to the National Land Code.

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Sin Yee
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BIE2001: Law of Land Development

TUTORIAL
Week 2 Land Disposal and related matters – Part 1
Lecturer: Dr. Hasniyati Hamzah

Definition of land

1. Give the definition of ‟Land” under Section 5, National Land Code 1965.
Section 5 of the National Land Code (NLC) has defined land as basically includes
not only soil on earth but also all the subjacent (originality) and superjacent
(lyingbelow) things of permanent nature affixed to the earth whether by nature, or
by handof man, things of a physical nature like buildings, fixtures, bridges, water,
trees, cropsand also minerals underneath the land surface. Section 5 also
provides that “Stateland” means all land in the State which includes the bed of any
river, and of theforeshore and bed of the sea; other than alienated land, reserved
land, mining landand any land that relates to forests.

Section 5 of the National Land Code (NLC) states that land includes:
 The surface of the earth and all substances forming that surface;
 The earth below the surface and all substances therein;
 All vegetation and other natural products, whether or not requiring the
periodical application of labour to their production and whether on or below
the surface;
 All things attached to the earth or permanently fastened to anything
attached to the earth, whether on or below the surface; and
 Land covered by water.

2. Based in the above definition of Land, state if the following is considered


part of land or otherwise:
a. Oil palm trees in an oil palm
plantation.

Yes

1
b. Oil palm seedlings in the nursery
of an oil palm.

No

c. Bungalow

Yes

d. Fence

Yes

e. Fishing pond (kolam memancing)

Yes

Chattel and Fixtures

3. What is the meaning of Quicquid plantatur solo, solo cedit?


Quicquid plantatur solo, solo cedit means “whatever is affixed to the soil belongs to the soil”.
This principle relates to fixtures and developments on land which can be said to belong to
the owner of the land. Therefore, title to the fixture is a part of the land and passes with title
to the land.

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4. Give an example of a chattel that can turn into a fixture on land.
Chattel – Printing machine
Fixture – Attached the printing machine to the land by nuts and bots.

5. Briefly explain the two tests that could determine if an object is legally considered
part of the land.
i. Degree of annexati
 An objective test on the physical attachment of the article.
 Raises a prima facie finding of fact by looking at the degree to which an article is
affixed to the land.
 If an object is affixed to the land even slightly —> the presumption is that it is a
fixture.
 If an object is attached to the land by its own weight —> remains a chattel.
 If the removal of the object would result in damage —> the presumption is that it
is a fixture.
 If the removal of the object does not result in damage —> cannot presume that it
is a chattel but to look at the purpose

ii. Purpose of annexation


 The prima facie finding in the Degree Test may be strengthened or rebutted by
the Purpose Test.
 If there is no physical attachment to the land —> the presumption is that it is a
chattel.
 If an object is attached to the land for the better enjoyment of the land as a whole
so as to improve its usefulness and value —>strengthens the presumption that it
is a fixture.
 If an object is attached to the land merely for the more complete enjoyment and
use of the item as a chattel —> rebuts the presumption that it is a fixture.

6. Recently, Paul has sold his land to George. The land measuring 2 acres is under the
category of “Industry” with the express condition “Machinery store”. The land accommodates
an industrial shed to place all heavy machineries that belonged to Paul comprising 5 cranes
dan 5 bulldozers. George assumes that he should get all the heavy machineries together
with the land and building as the heavy machineries should not be separated from the
machinery store.

Advise George if his assumption is correct. Use legal evidence (caselaw or National Land
Code provisions) to support your advice.

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Power of State Authority

7. Under NLC, who originally owns all the land in Malaysia? Think about your answer
carefully.

State authority. Based on the NLC, State Authority has the power on the property in all State
land, minerals and rock material within the territories of a state. For example, where the
Federal government needs land in a State for matters of national interest, the State
government must use its power to make sure that the Federal government gets the land.

8. A leasehold means that the land has an “expiry date”. Upon the expiry of the lease,
to whom does the land revert to?

State authority

9. Who owns the Orang Asli land? Think about your answer carefully.

State authority

Common questions

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The distinction between a chattel and a fixture lies in the degree of annexation and the purpose of the annexation to the land. A chattel often refers to items that are removable and not essential to the land's use, whereas a fixture is physically attached to the land or its structures, suggesting permanence. Fixtures are considered part of the property, while chattels are not .

Ownership of Orang Asli land technically lies with the State authority, as all Malaysian land is originally owned by the State. However, this raises issues concerning Indigenous rights and autonomy over traditional lands, as Orang Asli communities often face challenges asserting legal claims to land use and ownership despite cultural and historical ties .

George could argue that the machinery is essential to the use of the machinery store designated under the land's category of "Industry" with the condition "Machinery store." Therefore, it might be considered a fixture rather than a chattel. However, according to the National Land Code and caselaw, unless the machinery is physically affixed to the land, it is unlikely to be considered a fixture. Legal precedent emphasizes the necessity to evaluate the degree and purpose of annexation, as machinery that is not mechanically attached may remain a chattel and under the ownership of Paul .

The principle of 'quicquid plantatur solo, solo cedit' means 'whatever is affixed to the soil belongs to the soil.' This relates to land ownership as it implies that any fixtures on the land become part of the land itself and thus belong to the landowner. Therefore, title to any fixture would automatically transfer with the title to the land .

An object might be classified as a fixture if it is affixed to the land, even slightly, or if its removal would result in damage to the property, as this shows significant integration with the land. Conversely, if an object is attached by its own weight and its removal does not cause damage, it is typically considered a chattel. The purpose of annexation can further influence this classification if the object's placement either enhances the land's overall utility (making it a fixture) or is merely for the object's use (making it a chattel).

The purpose of annexation test evaluates whether the installation's attachment serves to enhance the land's utility or merely to utilize the item itself. If the solar panels are attached to improve the property's overall energy efficiency and not just for the use of the panels as chattel, this strengthens the presumption that they are fixtures. If their removal diminishes the property's utility, the panels could legally be considered part of the land .

Upon the expiry of a leasehold, the ownership of the land reverts back to the State authority. This is because leasehold land is not permanently alienated to the leaseholder, and the original ownership remains with the State .

The definition of "land" under Section 5 of the National Land Code 1965 includes the surface of the earth, substances forming that surface, and earth below the surface with all substances therein. It also encompasses all vegetation and natural products, attachments or permanent fixtures to the earth, and land covered by water .

All land in Malaysia is originally owned by the State authority. The State authority has the power over all State land, minerals, and rock material within its territory. In instances where the Federal government requires land for national interest, the State authority must facilitate the acquisition of such land .

An oil palm tree is considered part of the land as it is a permanent fixture and forms part of the natural products of the land. In contrast, oil palm seedlings in a nursery are not considered part of the land because they do not have a permanent attachment and are not intended to remain indefinitely, functioning more as chattel until they are planted .

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