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Section 265

Procedure at sale

of National Land Code (Revised - 2020)

ActIn forceProvision 256 of 391
Section 265

(1)

Where a sale is held pursuant to an order under section 263—

(a)

the sale shall take place under the direction of the Land

Administrator, who may take the assistance thereat of any licensed auctioneer; and

(b)

the chargee shall be entitled to bid at the sale.

(2)

If at the sale no bid is received at or above the reserve price, the land or lease in question shall be withdrawn from the sale, and the Land Administrator shall direct that it be put up for auction on a subsequent date, either at the same or at a new reserve price, and shall give such notice of the subsequent sale as he may consider appropriate.

281

National Land Code 419

Provisions of the

National Land Code

Modification

Sections 264a and 265

In its application to the Federal Territory of Labuan, delete these sections.

Act 828

(3)

If at the subsequent sale no bid is received at or above the reserve price, the Land Administrator may—

(a)

direct that it be put up for auction at a subsequent date, either at the same or a new reserve price and shall give such notice of the subsequent sale as he may consider appropriate; or

(b)

withdraw it from the sale and refer the matter to the Court.

(3a)

The Court may substitute for the order of the Land

Administrator an order for sale under section 256 or make such other order as it may think just:

Provided that the Court shall not make any order to the Land

Administrator to carry out the sale.

(4)

The purchaser at any such sale shall, upon payment to the

Land Administrator of the full amount of the purchase price, be entitled to receive from him—

(a)

a certificate in Form 16I that the land or lease in question has been sold to him under the authority of this Act

(which certificate shall, as provided by section 267, be registrable by the purchaser as if it were an instrument of dealing); and

(b)

if deposited with the Land Administrator pursuant to paragraph 264(2)(b), the issue document of title to the land or, as the case may be, duplicate lease.

(4a)

Notwithstanding subsection (4), where the chargee is a financial institution, the purchaser at the sale shall, upon payment of the full amount of the purchase price to the chargee and upon receipt of the certification in writing from the chargee not later than fourteen days following the payment of such sum, that the balance or the full amount of the purchase price has been paid, shall be entitled to receive from the Land Administrator—

(a)

a certificate in Form 16I that the land or lease in question has been sold to him under the authority of this Act

(which certificate shall, as provided by section 267, be registrable by the purchaser as if it were an instrument of dealing); and 282

National Land Code 421

Provisions of the

National Land Code

Modification

Act 828

Provisions of the

National Land Code

Modification

Section 266

In its application to the Federal Territory of Labuan, delete the words “or, as the case may be, Land

Administrator” wherever they appear.

National Land Code

National Land Code 423

(b)

if deposited with the Land Administrator pursuant to paragraph 264(2)(b), the issue document of title to the land or, as the case may be, duplicate lease.

(5)

Where the order for sale under subsection 263(2) requires the payment of any deposit by the successful bidder in any public auction and the balance to be settled on a date not later than one hundred and twenty days from the date of the sale, section 267a shall apply.

General Provisions