Indefeasibility of title: a comparative study between Malaysia and Australia / Catherine Anak Agam … [et al.]

The concept of indefeasibility of title and interests is central in any Torrens System of land registration. The Torrens System provides the concept of indefeasibility wherein all registered title and interests are guaranteed by the State to be good against the whole world in the absence of fraud or other vitiating circumstances statutorily specified or judicially laid down. Section 340 of the National Land Code 1965 provides for the concept of indefeasibly. The 2000 case Adorna Properties Sdn Bhd v Boonsom Boonyanit decided by the Federal Court was no longer good law pursuant to the judgment of the Federal Court in the case of Tan Ying Hong v Tan Sian San & 2 Ors delivered on Thursday 21 January 2010 wherein deferred indefeasibly concept has been reinstated. There is a loophole in the National Land Code in relation to the prevention of fraud and forgery. The Land Department is embarking on a long journey in efforts to amend the Section 340. Malaysia only have the mirror and curtain principles and lack the insurance principle that provides an avenue of indemnity for loss of rights and interest on a registered property due to fraud and forgery pursuant to creation of an assurance fund is a major step in restructuring our land administration the banking practice.