What is the difference between leasehold and freehold tenures?
THE land laws of Malaysia are governed by the National Land Code, 1965 (Act 56 of 1965). Section 40 of the National Land Code, 1965 states that all state land belongs to the state authority.
|Land uses|| |
- Lease duration usually 30, 60, 99 or 999 years.
- Limited by purpose of lease and land legislation.
- Stocking levels, cultivation, etc may be restricted by lease conditions.
|Limited by environmental and town planning controls|
|Duty of care|| - High level of duty of care defined in land legislation. |
- May be responsible for developing and maintaining improvements.
- May be required to engage in property planning.
|- Duty of care following common law and as required by some Environment Protection Acts or its equivalent.|
|Transferability, aggregation and subdivision||Lease transfers require State or its equivalent's approval.|| - Few limitations on transfer. |
- Unlimited right to subdivide and aggregate subject to town planning controls.
|Retrieval/resumption||Powers to acquire leasehold interest or withhold land when lease expires.||Some powers to acquire land for public works.|
|Security of tenure||Varies according to lease type but forfeiture for non-performance may be possible.||Very high level of security.|
- Leasehold renewal demystified NST-PROP 19/10/2002
- Land status The Star 20/04/2004 Articles of Law by Bhag Singh
- Lessons on leases The Star 29/10/2002 Articles of Law by Bhag Singh
- Leasing and Tenancy 19/2/2002 Articles of Law by Bhag Singh
- A primer on land ownership by Salleh Buang
- The leasehold fallacy by Previndran Singhe