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Tighten rules to prevent land scams, govt urged PDF Print E-mail
Friday, 16 March 2007 09:01am

PC on Fraudulent Land Transactions©New Straits Times (Used by permission)

KUALA LUMPUR: Businessmen, developers and landowners worried over land title fraud cases have urged the government to impose more stringent regulations.

Concerned representatives from various associations held a Press conference to urge the government to re-look legislation which they feel do not guarantee property ownership.

Associated Chinese Chambers of Commerce and Industry deputy secretary-general Datuk David Chua said the Federal Court, in the case of Adorna Properties Sdn Bhd vs Boonsom Boonyanit in 2001, allowed the party which purchased a land title in good faith to keep the land, regardless of the fact that the title was forged.

Chairman of the Conveyancing Practice Committee of the Bar Council, Roger Tan, said the original owner, clueless about the sale, was not given any compensation.

"So, even if the purchaser bought the land in good faith from a con man, he gets to keep it," he said.

It was suggested at the Press conference that a form of compensation fund or insurance scheme be initiated to protect innocent purchasers.

The MCA Public Complaints Department have received 20 complaints of this nature since 2003.

Its legal adviser, Datuk Theng Book, said last year, the department prevented a RM350,000 landed property from being sold in the nick of time.

He said since the land registry does not carry photographs of the land owners, some use the names of the land owners to get an extract of the land grant before selling the property to unscrupulous people.

He said those targeted are those in the older age group.

Also present at the Press conference were representatives from the Real Estate and Housing Developers’ Association, National House Buyers Association and the Malaysian Chapter of the International Real Estate Federation (Fiabci).

Comments (2)Add Comment
PUT MONEY WHERE MOUTH IS
written by Stephen Tan Ban Cheng, Friday, March 16 2007 12:44 pm

Adorna Properties Sdn Bhd vs Boonsom Boonyanit upheld the principle of equity's darling and will remain a case with which many Malaysian law students over the next few decades will be familiar.

It is a glaring case where the State, through the judiciary, virtually took the line of least resistance to "save" the banking institution from being exposed at the expense of the individual and her family.

The decision sent a lot of chill down the spine of a lot of property owners. Worse still, the perpetrators of the tort of criminal fraud were never caught and charged by the arms of Malaysian law which do not appear as long as their counterpart in other countries.

What is significant about the case is that it occurred just slightly more than 40 years after Merdeka or Independence, thereby giving us a wake-up call that all is not well with the administration of land matters in Malaysia.

It is about time that the State set up a Land Compensation Fund to restore the confidence of local and foreign property investors shattered by the Boonsom Boonyanit decision. Of course, the first line of defence is to ensure that no half-past-six officers ever heads the departments of every State and all members of the staff operate like Caesar's wife - beyond reproach. Setting up the fund will underscore the State's serioousness in dealing with the property of all investors - local as well as foreign.

It is time for the State to put the money where the mouth is.

From Bad to Worse
written by Nicole Tan Lee Koon, Friday, March 16 2007 07:03 pm

The land office delivery system is getting from bad to worse. Look at the recent case of a syndicate hacking into the land office computer system:
http://www.malaysianbar.org.my...w/8024/2/.

It is terrible that they should blame lawyers for their inadequacies:
http://www.malaysianbar.org.my/content/view/8038/2/.

They should instead enlist lawyers and other experts to help them improve their delivery system before it is too late.


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