Malaysia Land Chapter 5: Land Acquisition for Public purpose and Compensation and Right of Way

Chapter 5: Land Acquisition for Public purpose and Compensation and Right of Way

There is always a risk in investing something, and one of the risk in investing land is that the government may acquire it anytime for the follwing public purpose such as:

a) General public purpose
b) Development or improvement of township
c) Public works such as any port, airport, railway, road and others
d) Public ultility such as electricity, water, sewerage and others
e) Any scheme relating to the settlement or re-settlement of any community
f) Cultivation for padi or for agricultural research
g) Conservation, improvement or exploitation of natural resources (forest, minerals, etc)

So, just in case the land is acquire by the government for the above purposes, land office will value the land accordingly and compensate to the land owner according to their value. If one think the value is too low, one can always appeal to the land office for higher valuation.

As always, please check at land office and town planning or relevant department for any land that you intend to buy. Just to make sure the land has not been acquire by the government for public purposes. If it is road, electricity and water utility, it is not a bad thing as it will brings potential development to your land.

A 10 acre is up for sale by A. The government has acquired 1acre for river widening that is running through the land and already compensate the money to the A. Then A sell the 10 acre land to B for 100k. After B pay the price for 10 acres land, only then he knows that the government has acquire 1acre of his land, and he does not get the compensation as it has been paid to the A, somemore he paid extra 10k price for nothing.

Right of way is a creation of rights of way over land. There are two kinds of right of way which is private and public.

Private right of way is apply by land owner to gain access to their land over other land.
a) Private right of way can be apply through the land owners or land office. For example, your land is 2nd lot, and you need access to your land. You cannot enter your land through the first land as it would be tresspassing. So the fastest way to gain access to your land is to buy a right of way from the 1st lot land owner. If the 1st lot owner does not want to sell you the right, you can apply through land office and district office (if applicable), and consideration will be given. Any cost derive from the application are to be borne by those who has interest in it.

b) Public right of way is the right for the benefit of public, such as kampung. If your land is on the first lot, and there will be a kampung settlement at the 2nd lot, public right of way will be given to the kampung people by the government. Therefore, you are entitle or not entitle (depending on situation) for compensation.

That why those land with road access cost more than those without road access. Always try to invest in land with road access which gives you less hassle, headache and trouble while appreciates more.

Author: Edyek

Disclaimer: The article above is solely for reference purpose and any legal issue please consult a lawyer for proper legal advices.