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Section 267

Effects of sale

of National Land Code (Revised - 2020)

ActIn forceProvision 258 of 391
Section 267

(1)

Any certificate of sale given to a purchaser under subsection 259(3) or 265(4) in respect of any charged land or lease shall be treated for all the purposes of this Act as an instrument of dealing, and shall be registrable accordingly under

Part Eighteen; and, upon the registration thereof—

(a)

the title or interest of the chargor shall pass to and vest in the purchaser, freed and discharged from all liability under the charge in question and any charge subsequent thereto; and 284

National Land Code 425

Provisions of the

National Land Code

Modification

Section 266a

In its application to the Federal Territory of Labuan—

(1)

in paragraph (1)(d), delete the words “or Land

Administrator, as the case may be”;

(2)

in subsection (2), delete the words “or the Land

Administrator, as the case may be,”.

Subsection 267(1)

In its application to the Federal Territory of Labuan, delete the words “or subsection 265(4)”.

Act 828

(b)

subject to paragraph (2)(a), the relevant provisions of

Part Fourteen shall apply as if the chargor had transferred the land or lease to the purchaser in accordance with the provisions of that Part.

(2)

Notwithstanding that it was granted with the consent in writing of the chargee, as required by subsection 226(1), no tenancy exempt from registration granted by the chargor after the date of registration of the charge shall be binding on the purchaser unless, prior to the date of registration of the certificate of sale, the tenancy had become protected by an endorsement on the register document of title to the land pursuant to Chapter 7

of Part Eighteen.

(3)

Subsection (2) shall have effect in addition to those of subsection 213(3), under which, by virtue of the fact that he claims through the chargee, the purchaser will not be bound by any tenancy granted by the chargor before the date of registration of the charge unless it had become protected by endorsement prior to that date.