SUNGAI PETANI: The Kedah government has warned sellers of 'lot lidi' (individual housing lots) that the state would confiscate their lands for violating the National Land Code (NLC).

Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the state Land and Mines Office could issue a show cause letter to them over a possible breach of civil law.

"The state Land and Mines Office has the authority to issue show cause letters to the sellers on why their lands should be confiscated because they have violated the law.

"It is not a criminal offence, but it can be tantamount to committing a civil offence," Sanusi said at a press conference after opening a seminar on the issue, which was organised by the state Land and Mines Office, at Sungai Petani Municipal Council headquarters here today.

Present was state Land and Mines Office director Datuk Mohd Shahadan Abdullah.

Sanusi said that although the state government does not recognise the legality of 'lot lidi' transactions, many buyers fall for the scam due to their lack of legal awareness.

He said the problem was occurring as the sellers were selling the individual housing lots at cheaper prices, as well as promising to buyers that they had legal agreement papers, land titles and land surveyor documents for the plots of land to make the illegal transactions.

"The public should understand that under Section 206 of the NLC, the court may recognise the buyer's equity rights, but it cannot supersede Section 205 of the NLC pertaining to the registration rights.

"There are a lot of legal aspects that need to be taken into consideration, so our advice to the people - don't buy 'lot lidi', especially those located on agriculture land.

"The sellers are making a big profit by skipping legal processes to sell the plots of land at cheaper prices but the buyers will bear the risk because these can't be passed down to their children.

"It is safer to buy properties sold by developers, as they will handle all the legal processes pertaining to land titles and others," he said.

Sanusi urged the authorities to mobilise efforts to amend the NLC in Parliament to impose heavier punishment on "lot lidi" sellers.

Meanwhile, Shahadan said the sale of "lot lidi" through a sales and purchase agreement violates the land ownership principle under the NLC, which uses Form 14A as an instrument.

"Those who bought a 'lot lidi' must go back to square one by making a proper submission to the local council and apply for planning approval and land usage."

https://www.nst.com.my/news/nation/2024/04/1044242/sanusi-lot-lidi-sellers-could-get-their-lands-confiscated