LAND TUTO CHARGE

What is the definition of a charge?

• A form of security over the land or lease of a borrower or a third party.

• A fee charged by banks for lending money.

• An agreement between two parties to sell a property.

• A penalty for not repaying a loan on time.

What is the effect of a charge created under the National Land Code (NLC)?

• It prevents the chargor from selling the land.

• It cancels the existing charge on the land.

• It transfers the ownership of the land to the chargee. 

• It renders the land or lease in question liable as security in accordance with the provisions thereof.

Can Karisma create a subsequent charge on her land in Kuala Selangor?

• No, it is prohibited under the NLC.

• Yes, but only with the permission of Bank Dunia.

• Yes, as long as it is paid in order of priority.

• Yes, but only if Zaiton agrees to postpone her priority.

How is the priority of subsequent charges determined?

• They take priority over the first charge regardless of the date of registration.

• They take priority in accordance with the amount of the loan.

• They take priority in accordance with the date of their registration.

• They take priority based on the discretion of the Registrar of Titles.

According to the law, the power to create a charge over land is subject to any prohibition or limitation imposed by the NLC or any other written law, any restriction in interest to which the land is subject, and any express or implied provisions in relation to leases, as stated in Section