Jual Janji_Land law

8/18/2019 Jual Janji_Land law

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LAND LAW IILAND LAW II

(JUAL JANJI)(JUAL JANJI)


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DefinitionDefinition

A sale of a promiseA sale of a promise

Conditional sale.Conditional sale.


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Origin of Jual JanjiOrigin of Jual Janji

Come into existence after theCome into existence after thecoming of Islam to the Tanahcoming of Islam to the Tanahela!"#to a$oid the practice ofela!"#to a$oid the practice of

"s"r!"s"r! In the earl! da!s the concept ofIn the earl! da!s the concept of

%transfer& in '"al 'an'i is onl! in%transfer& in '"al 'an'i is onl! inform of oral "nderstandingform of oral "nderstanding

eteen the creditor andeteen the creditor andorroer and no act"alorroer and no act"aldoc"mentation or registration ofdoc"mentation or registration ofan! doc"ments ta*es place.an! doc"ments ta*es place.


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Tengku Zahara v Che Yusuf Tengku Zahara v Che Yusuf

[1951] 17MLJ[1951] 17MLJ

+riggs J, -+riggs J, - TheThewhole purpose ofwhole purpose of

jual janji jual janji

transaction is totransaction is to provide a provide a procedure for procedure forsecuring a loan…securing a loan…Without infringingWithout infringing

the prohibition ofthe prohibition ofusury which isusury which isbinding on thebinding on theconscience of allconscience of allgood Muslimsgood Muslims..


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W.E Maxwell (The Law and Custom W.E Maxwell (The Law and Custom

of the Malay with Reference to theof the Malay with Reference to the

Tenure of Land) Tenure of Land)

““the jual janji (conditionalthe jual janji (conditionalsale), the only form ofsale), the only form of

hypothecation of landhypothecation of landnown to Malay law, is, innown to Malay law, is, in

principal incidents, !uite principal incidents, !uite

unlie our mortgage ofunlie our mortgage ofreal property"""real property""" ##


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Effect of NLC 1965 on JJEffect of NLC 1965 on JJ

No more oral agreement.No more oral agreement.

"t"al "nderstanding on onership"t"al "nderstanding on onershipof land d"ring loan period cannot eof land d"ring loan period cannot e

practised an!more.practised an!more.

oner m"st compl! ith theoner m"st compl! ith themandatory requirement formandator

y requirement forregistrationr

egistration of land titles.of land titles.

Dealings ere reg"lated and J"al Jan'iDealings ere reg"lated and J"al Jan'ihas tohas to conform to the proceduresconform to the

proceduresof transfer of landof transfer of land..


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/0W1/0W1

The land ill e transferred The land ill e transferred

into the name of the lenderinto the name of the lenderand a e$ent"all! aand a e$ent"all! a collateralcollateralagreementagreement ill e exec"tedill e exec"tedhere! it is stated that thehere! it is stated that the

lender is oliged to transferlender is oliged to transferthe propert! to the orroerthe propert! to the orroer"pon f"ll repa!ment of the"pon f"ll repa!ment of theloan.loan.

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WHAT ISWHAT IS

COLLATERALCOLLATERALAGREEMENT?AGREEMENT?

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A A collateral agreementcollateral agreement is anis an

agreementagreement where thewhere the

consideration is the entry intoconsideration is the entry into

anotheranother agreementagreement,,

SoSo this agreementthis agreement co-existsco-exists

side by side with theside by side with the mainmain

agreementagreement..

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Elements of Jual JanjiElements of Jual Janji

LenderLender

+orroer2+orroer2

Loan2Loan2 Land as a sec"rit!2Land as a sec"rit!2


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!" #$ "!%&S'!" #$ "!%&S'

3.3.A loanA loan

granted !granted !Lender toLender to

thethe+orroer+orroer


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4. As a consideration4. As a consideration

to the loan5to the loan5

+orroer transfer+orroer transferland elonging toland elonging to

the +orroer to thethe +orroer to theLenderLender

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6.6. With a condition orWith a condition orpromise ! the Lender topromise ! the Lender to

retransfer to the +orroerretransfer to the +orroer(collateral agreement)(collateral agreement)

"pon f"ll and 7nal"pon f"ll and 7nal

settlement of the loan !settlement of the loan !the +orroer ithin anthe +orroer ithin an

agreed d"rationagreed d"ration

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8. If +orroer fail to8. If +orroer fail to

ma*e pa!ment ithinma*e pa!ment ithin

the agreed time5 thethe agreed time5 thetransaction is declaredtransaction is declared

as an asol"te sale i.e.as an asol"te sale i.e.

$ual %utus $ual %utus..

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9. Lender ta*es9. Lender ta*es

proceeds ofproceeds ofthe landthe landd"ring thed"ring theloan periodloan period

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(( is(( is notnot

governgovern by theby the)*+ 1965)*+ 1965

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So when (( case broht toSo when (( case broht to

cort, the cort can interrete ((cort, the cort can interrete ((

by re/errin to one o/ theby re/errin to one o/ the

interretations beowinterretations beow

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Judicial Opinions/Views Judicial Opinions/Views

A.A. Strict interpretationStrict interpretation :"rel! contract of sale:"rel! contract of sale

here time is of essencehere time is of essence

exceptionsexceptions

B.B. Liberal interpretationLiberal interpretation ;


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A. A.STRICT INTERPRTATIONSTRICT INTERPRTATION

Purely Contract - time is ofPurely Contract - time is of

essenceessence

Leading case,Leading case,

&j 'bdul ahman v &assan &j 'bdul ahman v &assan

(*+) ' -.*(*+) ' -.*““it was not a securityit was not a security

transaction or mortgage astransaction or mortgage as

the only form of mortgage inthe only form of mortgage in

Malaysia is charge or lien"Malaysia is charge or lien"

/ince it was a contract, the/ince it was a contract, the

claim was statute barred0 claim was statute barred0

http://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppthttp://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppthttp://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppthttp://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppthttp://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppthttp://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppt


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Cont…Cont…

Cases s"pported /' Ad"lCases s"pported /' Ad"l

=ahman=ahman

A >anapath! :illa! $ JosephA >anapath! :illa! $ Joseph

Chong (3?@3) 4LJ 33 (BC)Chong (3?@3) 4LJ 33 (BC)

#prac of JJ ! non ala! com"n#prac of JJ ! non ala! com"n

Wong ee Leng $ arasath!Wong ee Leng $ arasath!

Ammal 3?98E LJ 383 CAAmmal 3?98E LJ 383 CAIrahim $ Ad"llah (3?F8)Irahim $ Ad"llah (3?F8)

LJ 36?LJ 36?


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Cont…Cont…

If the +orroer failed toIf the +orroer failed to

compl! ith the terms ofcompl! ith the terms of

the contract5 the co"rt illthe contract5 the co"rt ill

not assist him to in$o*e thenot assist him to in$o*e theterms of the agreement i.e.terms of the agreement i.e.

to otain retransfer of theto otain retransfer of the

landland


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Exceptions to strict interp:Exceptions to strict interp:

3.3. ;xtension of time;xtension of time

Ismail /' ;mong $ La"Ismail /' ;mong $ La"

>ong /an (3?G) 4LJ 436>ong /an (3?G) 4LJ 436

Ad"l /amid +in aad $Ad"l /amid +in aad $

Ali!asa* Ismail 3???EAli!asa* Ismail 3???E

3A= 3G93A= 3G9


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Cont…Cont…

4.4. ;$ading pa!ment of loan;$ading pa!ment of loan

Ahmad +in 0mar $ /'Ahmad +in 0mar $ /'

alleh +in hai*h 0smanalleh +in hai*h 0sman

3?@E 3LJ 66@3?@E 3LJ 66@

/ati'ah +te =e'a $/ati'ah +te =e'a $

Ad"llah aad 4GG8E 4Ad"llah aad 4GG8E 4

A= FF9A= FF9


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B.B.LIBERAL INTERPRETATIONLIBERAL INTERPRETATION

Equitable PrinciplesEquitable Principles

The collateral agreement for The collateral agreement for

a retransfer in aa retransfer in a jual janji jual janji transaction is in the nat"retransaction is in the nat"re

of an e


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Cont…Cont…

Haaco +in Leai J"soh $ Haaco +in Leai J"soh $

/amisah +t aad 3?9GE/amisah +t aad 3?9GE

LJ 499LJ 499

Naa Din $ ohamedNaa Din $ ohamed

harif 3?96E 3? LJ 34harif 3?96E 3? LJ 34

/ali'ah $ orad 3?4E 4/ali'ah $ orad 3?4E 4

LJ 3FFLJ 3FF


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Recent Development inRecent Development in

MalaysiaMalaysia

The ala!sian co"rts The ala!sian co"rtsrel"ctant to de$iate fromrel"ctant to de$iate fromthe case of /a'i Ad"lthe case of /a'i Ad"l

=ahman.=ahman./ati'ah te =e'a $/ati'ah te =e'a $

Ad"llah aad (4GG8) 4Ad"llah aad (4GG8) 4

A= FF9A= FF9


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Jual Janji_Land law