Call to amend National Land Code to curb forgery

17/03/2007 NST

KUALA LUMPUR: Dozens of landowners have had their properties sold by forgers and cannot get them back.

While many of these cases involve undeveloped land, at least one involved a house.
 

Now, homeowners, businessmen and lawyers are concerned that property rights are being undermined, helped by a controversial Federal Court decision in 2001.
 

The decision in the case, Adorna Properties Sdn Bhd v Boonsom Boonyanit, protects innocent buyers of such properties, leaving the original owners with little recourse.
 

Eventually, it could mean title deeds no longer conferred full protection, they said.
 

At least 85 such cases have come to light in Kuala Lumpur and Selangor alone, said a police source, adding that police were waiting for information on cases in other states.
 

Separately, the MCA Complaints Department had collated details of 16 cases, which involve properties worth RM20 million in total.
 

Typically, forged identity cards were used to obtain duplicate title deeds. The forgers then sold the property, sometimes to collaborators first, then to an innocent third party.
 

"There seems to be an increase in the number of cases," said Datuk Theng Book, the bureau’s legal adviser.
 

The latest case to emerge involved a double-storey house in Puchong, Selangor.
 

Using a forged identity card, the forgers applied for, and got, a new title deed to the house, which had been left empty for some time.
 

They then sold the house through a real estate agent, according to Theng.
 

The owner happened to be at the house when the buyer dropped by. As such, she managed to prevent a full transfer.
 

Landowners in the other cases were much less fortunate, and many are embroiled in lengthy court battles.
 

Even restrictions, such as caveats, have not prevented fraudulent transfers. In a 2005 case, a 6.5ha land in Cheras, valued at more than RM10 million, was transferred despite a caveat on the property.
 

Another case was discovered in 2004 involving a piece of land in Durian Tunggal, Ma lacca, worth RM1.5 million.
 

"The rights of landowners are not being protected," Theng said.
 

The main consequence of the Adorna case had been that forgers were getting away with their crimes, said a Bar Council representative.
 

"Because of this, you could almost call land title fraud a thriving business," said Roger Tan, who chairs the Convey- ancing Practice Committee.
 

Owners should keep tabs on their properties, especially if left empty and without transfer restrictions, such as charges arising from bank loans.
 

National House Buyers Association honorary secretary-general Chang Kim Loong said the association wanted the National Land Code to be amended, to reverse the effects of Adorna. "So in cases like this, owners will not risk losing their property as in the Adorna case."