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Property Friday: What is Indefeasible Title in Malaysia?

What if Someone Claims Your House/Land Isn’t Yours?

You have the title deed, your name is on the register, but is your ownership truly protected?

 

🛡️Indefeasibility of Title

📖 EXCERPT FROM PROPERTY LAW BY GEORGE MIRANDA:

“Indefeasibility of title means the title is immune from attack by any adverse claim to the land, providing security and certainty to a registered proprietor. The shield of indefeasibility protects the registered title and interest against unregistered claims.”

— Chapter 7: Indefeasibility of Title and Interest, Property Law (Sweet & Maxwell, 2025)

 

Definition of Indefeasibility

Sections 340 & 341 of the National Land Code

📋WHAT IT MEANS:

  • INDEFEASIBLE = Cannot be defeated or challenged

Your title is immune from attack by any adverse claim to the land, providing security and certainty to you as the registered proprietor.

YOUR PROTECTION:

The shield of indefeasibility protects your registered title and interest against unregistered claims. Think of it as an UNBREAKABLE SHIELD for your property rights!

🎯 KEY BENEFIT:

As long as you’re registered, your ownership is recognized and protected by Malaysian law.

 

The Torrens System

The Register is EVERYTHING

📋HOW IT WORKS:

Malaysia uses the Torrens System of land registration. Under this system:

  • Registered document of title = CONCLUSIVE EVIDENCE of ownership
  • Your name on the register = You are the legal owner
  • Your registered title is PROTECTED BY LAW

⚖️ Legal Principle:

“Under the Torrens System, the register is everything”Federal Court in Teh Bee v K Maruthamuthu [1977] 2 MLJ 7

 

4 Exceptions to Indefeasibility of Title

Even indefeasible titles can be challenged in 4 situations under Section 340(2) NLC. Nonetheless, there’s protection for innocent buyers!

1) Fraud

Section 340(2)(a) NLC 2020

⚠️ Exception: Title is NOT indefeasible if obtained through fraud to which the registered proprietor, or their agent, was a party or privy.

Requirements:

  • Must be ACTUAL fraud (not just mistake).
  • Party/privy to the fraud.
  • Must prove intention to cheat.

2) Misrepresentation

Section 340(2)(a) NLC 2020

⚠️ Exception: Title is NOT indefeasible if obtained through fraudulent misrepresentation — false statements made knowingly, or without belief in their truth, with intention to deceive.

Key Test:

  • Making a false statement KNOWINGLY or not believing it to be true + INTENTION TO DECEIVE = Fraudulent Misrepresentation

3) Forgery/Void Instrument

Section 340(2)(b) NLC 2020

⚠️ Exception: Title is NOT indefeasible where registration was obtained by:

  • FORGERY (E.g. Fake signatures)
  • INSUFFICIENT instrument (E.g. Instrument is not attested or insufficiently stamped)
  • VOID instrument (E.g. Invalid documents, signed by minors)

4) Unlawful Acquisition

Section 340(2)(c) NLC 2020

⚠️ Exception: Title is NOT indefeasible where it was unlawfully acquired in the purported exercise of any power or authority conferred by any written law (ultra vires by authorities).

 

BUT: Innocent Buyers Are Protected!

Section 340(3) Proviso – Deferred Indefeasibility

✅ Your Protection:

If you’re a SUBSEQUENT PURCHASER who bought in good faith and for valuable consideration, your title IS indefeasible even if the previous owner obtained it through fraud/forgery!

🎯 Key Benefit:

Malaysia follows “deferred indefeasibility” – innocent subsequent buyers are protected, even if fraud occurred earlier in the chain.

 

For further information, please contact us at Miranda & Samuel:

  • Dato’ George Miranda (george@mirandasamuel.com)
  • Joy Sam Jia Qian (joy@mirandasamuel.com)
  • Alisyah Maisarah (alisyah@mirandasamuel.com)

 

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#PropertyFriday #RealEstate #IndefeasibleTitle #MalaysiaPropertyLaw #Section340NLC #NationalLandCode #PropertyRightsMalaysia #Conveyancing

 

– By George Miranda, Joy Sam Jia Qian, Alisyah Maisarah –

This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.

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