The State Authority Consent is required when the State Authority places a restriction in interest in the Land or Property. In the scenario, the Land or Property cannot be sold or transferred without the approval of the State Authority.
Section 5 of the National Land Code 1965 states that a restriction in interest is any limitation imposed by the State Authority on any of the powers conferred upon a registered proprietor to deal with his land by way of a transfer, lease, charge, easement, tenancy, or statutory lien over his land, as well as his powers to subdivide, partition or amalgamate his land. The effect of a restriction in interest is that it limits the rights and powers of a proprietor to deal with his/her land or property freely.
How to know your Land or Property is under restriction in interest?
1. It will be stated in the title under Sekatan Kepentingan – the most common example of restriction in interest is “Tanah ini tidak boleh dipindahmilik, dipajak atau digadai tanpa kebenaran Jawatankuasa Kerja Tanah”
A proprietor can find out whether his/her land or property is subjected to a restriction in interest where the restriction will be clearly stated in the title. If the title is not in your custody, a land search can be conducted and the same status will be stated in the land search.
Click here to read more: https://hhq.com.my/publications/property-transactions-when-state-authority-consent-is-required/
About the Author
Teoh Jackline
Associate
Real Estate & Banking and Finance
Halim Hong & Quek