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Sunday, June 17, 2012

Freehold title become 99 years leasehold title!

DSC_0777 Press Release by YB Wong Kah Woh, the State Assemblyman for Canning on 16/06/2012 (Saturday):-

(IPOH, 16 June 2012) - A number of residents currently living in Taman Mirindi, Kampung Simee, Ipoh, have recently received notices from Pejabat Tanah dan Galian (PTG) informing them that there is a change in their title. In a press conference today, YB Wong Kah Woh and the residents expressed their shock to learn that their land status has been changed from a freehold title to a 99 years leasehold title!

Wong said that in the past month, the residents in Taman Mirindi received letters from PTG with instructions to go to PTG to collect the title change. PTG has cited reasons for this change in title as a previous mistake. However, when residents appeared to collect the new title at the PTG office, the found that the old title (Geran) was cancelled and was replaced with a leasehold title (Pajakan Negeri) of 99 years.

To add to their dismay, residents were not properly informed that the exchange of title will give them a 99 years leasehold title when they were at the land office. The residents feel misled by PTG.

Wong said, “The National Land Code (NLC) protects the people’s rights to the land by providing the indefeasibility of title. Since the title held by the residents up till now has been a freehold title and not a state lease with an expiry date, morally and legally, the PTG cannot force the people to accept the change in title especially in this case when the changes were done without their knowledge!”

Taman Mirindi was developed nearly 30 years ago. The recent instructions from PTG have caused major confusion. Residents are wondering if they bought a house with a freehold title or if it was just leasehold. During this period, a lot of houses have exchanged hands by way of sub-sale and if the title were to be changed from freehold during the purchase to 99 years leasehold, it is unfair to the residents. PTG’s reason of it being a “mistake” cannot stand.

Wong said that a resident bought a house in the year 1998/1999 costing around RM50, 000. During the time of sale, the title was clearly stated as freehold title. Now that the resident has collected the new title from PTG, the title states that it is a 99 years lease expiring in 2081. This affects their indefeasibility in land ownership.

“Before PTG issues such letters, they should first check with the proprietors concerned and verify if the title was freehold or leasehold during their purchase. If PTG can send a notice of cancelation of title or exchange the title from freehold to leasehold on a whim, it means that the title in hand, which is protected under NLC, is just a useless piece of paper,” said Wong.

Another problem foreseen is that if banks get wind of the fact that the status of the title has changed and the house is currently under bank loan and payments are made in instalments, it would be an issue as to whether banks will recall the loans as the value of the property has dropped.

“PTG should give Taman Mirindi residents a clear explanation. Also, PTG should allow those who have returned their old title in exchange of a new one to recollect their old title until further decisions are made by the PTG,” said Wong.

Democratic Action Party

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