Introduction
Under the Torrens system, title to or interest in land vests and divests only upon registration. Registration is an act of the State and constitutes the final stage of any dealings in land. Under the National Land Code (“NLC”), dealings which are capable of being registered are:
– Transfers
– Leases
– Charges
– Easements
As far as such dealings are concerned, no title to or interest in land will be transferred or created until the instruments affecting these dealings have been registered.
There are, however, two types of dealings which do not require registration. Hence, a tenancy may be granted orally or by way of a written instrument in any form whatsoever. It is exempt from registration. A lien, on the other hand, is created upon the entry of a lien-holder’s caveat by a person or body with whom the issue document of title, or as the case may be, the duplicate lease, has been deposited as security for a loan.
What is “dealings”?
As per s5 NLC, ‘dealing’ refers to any transaction with respect to alienated land effected under the powers conferred by Division IV, and any like transaction effected under the provisions of any previous land law, but does not include any caveat or prohibitory order. This section thus lays down three elements that exist in dealings, namely:
(i) there would be a transaction
(ii) involving alienated land
(iii) the transaction must be distinguished from caveat and prohibitory order.
In general, dealings refer to transfers, leases, charges, easements, tenancies and liens. However according to s205(1) NLC, dealings that are capable of being effected under the code with respect to alienated land and interest therein shall be those specified in Parts 14 to 17, therefore only referring only to transfers, leases, charges and easements.
As stated in s209(1) NLC, these four types of dealings would require a specific instrument for purposes of registration as opposed to lien and tenancy, which do not require registration. Dealings therefore create an inter vivos relationship while dealings after death come within the distribution of estates according to the faraid (for muslims) or Distribution Act 1958 (for non-Muslims).
Registration of Dealings
As per s292(1) NLC, the following instruments may be registered under this Part, and may be presented to the Registrar for that purpose in accordance with subsection (2):
(a) any transfer under Part Fourteen of land, of an undivided share in land, or of any lease, sublease or charge;
(b) any lease, sublease or surrender thereof under Part Fifteen;
(c) any charge, discharge or instrument of postponement under Part Sixteen;
(d) any certificate of sale under Part Sixteen; and
(e) any instrument granting or releasing any easement under Part Seventeen.
The Registrar has no discretion to register any instrument that is not provided under these provisions.
