National Land Code (Revised - 2020) · Updated to 15 Oct 2020 · Chapter 3 · Remedies of chargees: Sale
268. Application of purchase money
Feedback & supportThe purchase money arising on any sale under this
Chapter shall be applied as follows:
firstly, in the payment of rent to the State Authority or the lessor (according as the charge was a charge of land or of a lease) and, so far as no person other than the chargor was responsible therefor, any other outgoings payable to the State Authority or any local authority;
secondly, in the payment of the expenses (as certified by the Registrar of the Court or Land Administrator, as the case may be) incurred in connection with the making and carrying into effect, of the order for sale;
thirdly, in the payment to the chargee of the total amount due under the charge at the time of the sale;
fourthly, in the case of a charge to secure the payment of an annuity or other periodic sum, in accordance with any provision for the satisfaction of payments subsequently falling due included therein pursuant to paragraph 242(2)(b); and
fifthly, in the payment off of subsequent charges, if any, in the order of their priority.
The reference in paragraph (1)(e) to the payment off of subsequent charges is a reference—
in the case of a charge to secure the repayment of a debt, or the payment of any sum other than a debt, to the payment to the chargee of the principal sum thereby secured (or so much thereof as is then outstanding)
together with any interest then due, if any;
in the case of a charge to secure the payment of an annuity or other periodic sum, to the payment to the chargee of all sums then due, and the giving effect to any provision for the satisfaction of payments subsequently falling due included therein as mentioned in paragraph (1)(d).
The residue, if any, of the purchase money shall, subject to subsection 339(3), be paid to the chargor.
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National Land Code 429
land
“land” includes— (a) that surface of the earth and all substances forming that surface; (b) the earth below the surface and all substances therein; (c) 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; (d) all things attached to the earth or permanently fastened to anything attached to the earth, whether on or below the surface; and (e) land covered by water;
Provisions of the
National Land Code
Modification
Paragraph 268(1)(b)
In its application to the Federal Territory of Labuan, delete the words “or Land Administrator, as the case may be”.
Land Administrator
“Land Administrator” means a Land Administrator appointed under section 12, and includes an Assistant Land Administrator appointed thereunder; and, in relation to any land, references to the Land Administrator, or any Assistant Land Administrator, having jurisdiction in the district or subdistrict in which the land is situated;
Application of purchase money by chargee who is a financial institution 268a. (1) Upon receipt of the full payment of the purchase money of the sale, the chargee who is a financial institution shall immediately certify in writing to the Registrar of the Court or the Land Administrator, as the case may be, that the full payment has been received.
Registrar
“Registrar” means— (a) in relation to land held or to be held under Registry title, or under the form of qualified title corresponding to Registry title, or under subsidiary title dependent on a Registry title, a Registrar of Titles or Deputy Registrar of Titles appointed under section 12; (b) in relation to land held or to be held under Land Office title, or under the form of qualified title corresponding thereto, or under subsidiary title dependent on a Land Office title, the Land Administrator;
The chargee shall apply the purchase money in the manner specified as follows:
firstly, in the payment of the moneys due specified in paragraphs 268(1)(a) and (b) not later than fourteen days from the date of the receipt of the full purchase money of the sale; and
secondly, in the payment of moneys due to the persons or bodies in the order of priority specified in paragraphs 268(1)(c), (d) and (e) not later than twenty-one days after receipt of the full amount of the purchase money.
A statement of accounts of the payments received and paid out as specified in subsection (2) shall be submitted not later than thirty days after the receipt of the full purchase money to the Registrar of the Court or the Land Administrator, as the case may be.
Protection of purchasers