Malaysia legislation
Section 18
Section 18
The principal Act is amended by inserting after Part IV the following parts:
“Part IVa
COLLECTION OF RENT
Interpretation 23a. In this Part, unless the context otherwise requires—
“existing documents of strata titles” means any documents of strata title registered and issued before the coming into operation of section 4c;
“existing issue document of title of the lot” means any existing issue document of title of the lot issued before the coming into operation of section 4c;
“existing issue document of strata title” means existing issue document of strata title issued before the coming into operation of section 4c.
Rent to be debt due to State Authority 23b. The rent payable in respect of each parcel or provisional block is a debt due to the State Authority and, without prejudice to the provisions of this Act relating to forfeiture of the parcel or provisional block for non-payment thereof, may be recoverable by action brought pursuant to section 16
of the National Land Code.
Determination and computation of rent 23c. (1) Upon the coming into operation of section 4c—
(a)
the Land Administrator shall determine the amount of rent; and
(b)
the Registrar shall—
(i)
make a memorial on the register and issue documents of titles to the lot, the date that the rent of the lot ceased to be effective and rent of parcel or provisional block comes into operation, notwithstanding anything contained in the title of the lot; and
(ii)
endorse on the documents of strata titles with the amount of rent.
(2)
The Registrar shall make a memorial or an endorsement to the existing issue document of title of the lot and the existing issue document of strata title pursuant to subparagraph (b)(i)
or (ii) when those titles are produced to him.
(3)
The rent reserved in respect of parcel or provisional block shall becomes payable from the beginning of the calendar year.
(4)
In relation to the existing documents of strata titles, the rent of parcel or provisional block becomes payable from the beginning of the calendar year.
(5)
In relation to the documents of strata titles registered after the coming into operation of section 4c, the rent becomes payable from the beginning of the calendar year next following.
(6)
The rent payable in relation to any calendar year shall fall due in full on the first day of that year and, if not sooner paid, shall be treated for the purpose of this Act as becoming in arrears on the first day of June in that year.
Strata Titles (Amendment)
(7)
For the purpose of subsection (6), subsection 94(2) of the National Land Code and the modification as stated in paragraph 1 of the Twelfth Schedule to the National Land
Code shall be applicable.
(8)
For the purpose of paragraph (1)(a), the rent of parcel or provisional block—
(a)
shall be computed on the basis of a rate per square metre for each parcel, or parcel and accessory parcel, or provisional block, as the case may be; and
(b)
the arrears of rent of the lot may be—
(i)
included in proportion to the share units and provisional share units; or
(ii)
recoverable by any other manner prescribed.
(9)
Where the rent computed in relation to any parcel or provisional block is or includes a fraction of a ringgit, it shall be rounded up to one ringgit or to the nearest ringgit above the amount so computed, as the case may be.
(10)
The provisions of this section shall have effect subject to any remission or rebate of rent granted or allowed pursuant to rules made under paragraph 81(1)(aa) and to any authorization granted for the payment by installments or deferment of payment of any rent.
Where rent payable 23d. The rent payable in relation to parcel or provisional block shall be paid by or on behalf of the proprietor at—
(a)
the office of the Land Administrator or at any other place which the Land Administrator may deem fit;
or
(b)
such other places as prescribed or through any person or body as approved by the State Authority.
Notice of demand 23e. (1) Where any rent payable in relation to any parcel or provisional block is in arrear, the Land Administrator may cause to be served on the proprietor thereof a notice of demand in Form 11.
(2)
As soon as Form 11 is served on the proprietor, the
Land Administrator shall cause to be served on every chargee, lessee, sublessee, tenant, lien-holder, caveator and easement holder, a copy of Form 11.
(3)
A note of the service of Form 11 under subsection (1)
shall be endorsed by or at the instance of the Land Administrator, on the register document of title to the parcel or provisional block to which the notice relates.
Right of chargees, lessees, etc., to pay sum demanded 23f. (1) The sum demanded in Form 11 may be paid to the
Land Administrator within the time specified in Form 11
by any of the following persons or bodies in addition to the proprietor:
(a)
any chargee, person or body having a registered interest affecting the parcel or provisional block
(including a charge of any lease or sublease thereof);
(b)
any person or body having a lien over the parcel or provisional block, or over any lease or sublease thereof;
(c)
any person or body in occupation of any part thereof under any tenancy exempt from registration which has become protected by an endorsement on the register document of title to the parcel or provisional block under section 317 of the National Land Code;
and
(d)
any person or body having a claim protected by caveat affecting the parcel or provisional block or any interest therein.
Strata Titles (Amendment)
(2)
Any sum paid by a chargee pursuant to subsection (1)
shall be added to, and deemed for all the purposes of this
Act to form part of, the first payment thereafter falling due to him under the charge.
(3)
Any sum so paid by any other person or body referred to in subsection (1)—
(a)
shall be recoverable from the proprietor by civil action; and
(b)
may, if paid by a lessee, sublessee or tenant, be recovered alternatively by deduction from any rent then or thereafter payable to him under the lease, sublease or tenancy.
(4)
Any lessee, sublessee or tenant who incurs any additional liability, or suffers any deduction, under this section may recover the amount thereof either by civil action against the proprietor or by deduction from any rent then or thereafter payable by him under his lease, sublease or tenancy.
Effect of payment of sum demanded 23g. If the whole of the sum demanded in Form 11 is paid to the Land Administrator within the time specified therein, the notice shall cease to have effect, and the Land
Administrator shall cancel, or cause to be cancelled, the note endorsed pursuant to subsection 23e(3) on the register document of title to the parcel or provisional block to which the notice relates.
Forfeiture for non-payment of sum demanded 23h. (1) The Land Administrator shall not during the period specified in Form 11 accept any payment by or on behalf of any person or body of a lesser amount than the sum thereby demanded.
(2)
The Land Administrator shall, at the expiration of the period stated in Form 11 the whole of that sum has not been paid to him, by order—
(a)
declare the parcel or provisional block to be forfeited to the State Authority; and
(b)
vested and registered in the name of any statutory authority as prescribed to hold the parcel or provisional block on behalf, and for the benefit, of the State
Authority.
Power of State Authority to revise rent periodically 23i. (1) Subject to subsection (5), the State Authority may from time to time revise in accordance with provisions of this section the rent payable in respect of parcel or provisional block within the State.
(2)
Any revision of rent under this section shall extend to all parcel or provisional block within the State except parcel or provisional block of any classes or description which the
State Authority may think fit to exempt.
(3)
On any revision of rent under this section, the State
Authority may—
(a)
increase or reduce by the same proportion the rent payable in relation to all parcel or provisional block to which the revision extends; or
(b)
make different provisions for different classes or descriptions of such parcel or provisional block, either—
(i)
provision for increasing or reducing rent by the same proportion, or
(ii)
provision imposing a new rate of rent thereon.
(4)
In the exercise of the powers conferred by this section, the State Authority shall take no account of increases in parcel or provisional block values attributable due to improvements.
Strata Titles (Amendment)
(5)
Any revision of rent under this section shall be made at such time as the State Authority may, with the approval of the National Land Council, determine, but—
(a)
on the first revision, it shall—
(i)
have effect not less than ten years after the coming into operation of this Part; and
(ii)
be made together with the revision of rent under section 101 of the National Land Code; and
(b)
any subsequent revision shall—
(i)
have effect of not less than ten years after the last revision of the rent; and
(ii)
be made together with revision of rent under section 101 of the National Land Code.
(6)
Where a revision of rent has been made under this section, the Registrar or Land Administrator shall, as soon as possible—
(a)
amend the amount of rent endorsed on the document of title to, and payable in respect of, parcel or provisional block affected by the revision by substituting the revised rent for that amount; and
(b)
note the date of making the amendment and the authority therefor and authenticate the same under his hand and seal.
Effect of termination of subdivision 23j.
In relation to the memorial made pursuant to subsection 57(2), the Registrar shall make a memorial on the register and issue documents of title to the lot, the date on which the rent of the lot comes into operation the next following calendar year at the recent revision pursuant to section 101 of the National Land Code.
Part IVb
FORFEITURE AND VESTING
Interpretation 23k. In this Part, unless the context otherwise requires—
“transferee” means statutory authority prescribed to be registered as new proprietor by way of vesting to hold the parcel or provisional block on behalf, and for the benefit, of the State Authority;
“former proprietor” means a person who, or a body which, immediately before the reversion of a parcel or provisional block to the State Authority is the proprietor of a parcel or provisional block.
Reversion to State Authority and vesting to take effect upon notification in the Gazette 23l. (1) The Land Administrator shall, after making of an order under section 23h of this Act or section 129 of the
National Land Code in relation to any parcel or provisional block, publish in the Gazette a notification in Form 12.
(2)
The Land Administrator shall, as soon as possible, after the publication of Form 12 in the Gazette—
(a)
cause a copy of the notification under subsection (1)
to be sent to the management corporation; and
(b)
publish the notification in accordance with section 433 of the National Land Code.
(3)
The Registrar shall, after the publication in paragraph (2)(b), make a memorial to the effect that the parcel or provisional block has been forfeited and vested in the transferee on the register document of title and issue document of title.
Strata Titles (Amendment)
19
Effect of forfeiture 23m. Upon taking into effect of any forfeiture in relation to any parcel or provisional block under this Part—
(a)
the parcel or provisional block shall revert and vest in the transferee, freed and discharged from any interest subsisting or capable of arising immediately before the forfeiture took effect;
(b)
the Land Administrator, by notice in the Gazette in
Form 12, declares that the parcel or provisional block which reverts to the State Authority shall vest and be registered in the name of the transferee to hold the same on behalf, and for the benefit, of the
State Authority;
(c)
there shall also vest in the transferee without any arrears relating to management fund, debt and any other outstanding payment payable under the Strata
Management Act 2013 [Act 757] that is liable to the former proprietor;
(d)
there shall vest in the transferee, without payment of compensation, any parcel or provisional block then existing on the land; and
(e)
any item of land revenue then due to the State
Authority in relation to the parcel or provisional block shall be extinguished.
Parcel or provisional block not to be transferred during period for appeal against forfeiture 23n. (1) Where any parcel or provisional block has reverted and vested to the transferee by reason of the taking into effect of any forfeiture under this Part, the transferee shall not effect dealings permitted under Division IV of the National
Land Code at any time before—
(a)
the expiry of the period of three months under section 418 of the National Land Code which an appeal lies to the court against the order of the
Land Administrator under section 23h of this Act or section 129 of the National Land Code; or
(b)
the determination of the appeal and of any proceedings consequent thereon (if such an appeal is lodged during that period).
(2)
The provision of subsection (1) shall be without prejudice to the power of the State Authority under section 23o to annul the forfeiture at any time on a petition by the former proprietor immediately before the forfeiture took effect.
Power of State Authority to annul forfeiture, etc.
Quoted provision
Section 23o
(2)
The State Authority may in its absolute discretion refuse or allow any petition under this section, and if the
State Authority allows the petition, may do so conditionally upon payment by the petitioner—
(a)
if the forfeiture involving a non-payment of rent—
(i)
all the sums now due which was required to be paid by the notice of demand served under section 23e of this Act;
(ii)
such penalty, not exceeding six times the sum which was required to be paid under subparagraph (i), as the State Authority may think fit to impose; and
(iii)
such other sums paid by the transferee upon taking effect of forfeiture pursuant to subsection 23l(3);
(b)
if the forfeiture involving a breach of condition, the
State Authority may determine the amount in respect of the expenses occasioned by the forfeiture; and
(c)
all sums as mentioned in paragraphs (a) or (b) shall be paid within one month beginning from the date on which it was communicated.
Strata Titles (Amendment)
(3)
Where the petitioner fails to settle the amount which was required to be paid under paragraph (2)(c), the allowance of the petition for the annulment of the forfeiture shall be null and void.
(4)
Upon payment of all sums specified under paragraph (2)(c), the Registrar shall make a memorial to effect the vesting of the parcel or provisional block to the petitioner on the register and issue documents of title.
Appeal against forfeiture 23p. (1) The validity of any forfeiture under this Part shall not be challenged in any court except by means of, or in proceedings consequent upon, an appeal under section 418
of the National Land Code against the order of the Land
Administrator under section 23h of this Act or section 129
of the National Land Code, and notwithstanding anything in any other written law, no appeal shall be commenced after the expiry of the period of three months allowed under section 418
of the National Land Code.
(2)
No order of the Land Administrator under section 23h of this Act or section 129 of the National Land Code shall be set aside by any court except upon the grounds of its having been made contrary to the provisions of this Part, or of there having been a failure on the part of the Land
Administrator to comply with the requirements of any such provision, and no such order shall be set aside by reason only of any irregularity in the form or service of any notice under Part IVa and this Part unless, in the opinion of the court, the irregularity was of a significant nature.
(3)
In any appeal or other proceedings as mentioned in subsection (1), it shall be presumed until the contrary is proven that all notices required to be served under Part IVa and this Part were duly and regularly served.
(4)
The provisions of subsection (1) shall not affect the right of any person or body to bring an action for damages against the State Authority, or (subject to section 22 of the
National Land Code), against any officer appointed by the
State Authority, in respect of any act or thing wrongfully done, or ordered to be done or omitted to be done, in connection with any forfeiture under this Part.”.
Amendment of heading Part V