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 Anyone got experience with Land Acquisition Act?

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2Chio4U P
post Feb 7 2021, 09:39 AM

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QUOTE(grahamaker93 @ Dec 29 2020, 10:39 AM)
Hi Lowyat,

Thank you for stumbling upon my post. I'm posting because I need some help and perspective from the knowledgeable people in here.

Basically I live in a town in JB very very near to the new RTS station about to be built. I love this neighborhood even though it isn't exactly safe or pristine.
My late father left this house for us and we grew up here. It is a nice Semi-D house with around 6000 Sqft of land. I grew up here and I seen it transform from
a beautiful neighborhood to a neighborhood ruined by the people working across the causeway illegally parking in my neighborhood and literring away.

But with that said I still love this little home of mine, it is convenient and spacious and my family feels a deep bond with this house.

You can imagine my devastation when I saw an article on edgeprop that says that there is a high chance my neighborhood will be acquired by developers to be transformed
into a commercial zone. The young naive Malaysian in me died when I researched and found out that in Malaysia there is little chance to fight forced land acquisitions or ask
for fair compensations. Nothing is set in stone yet but I have already predicted that the acquisition will one day come and probably not too far into the future.

I am also sick with worry about a few major points:

1. We love the spaciousness of our home and we are worried we wouldn't be able to get another home that is somewhat still convenient location-wise and as spacious in the overinflated property market of JB.

2. My mother is 67 years old, should I start house hunting now before the prices go up further so my mum in her old age wouldn;t have to deal with the whole relocation down the line.

3. My father left us some assets and we have income from the business but I am too young and my income is not high enough to get bank loans, my mother gets aid from the shares of the business we are left behind but she is old and the banks wouldn't approve any loans for her. (Family business stuff, so it's complicated)

But mainly I want to know how you folks who have been through something like this navigated the situation and what I need to look out for.

Thank you for reading
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Hi, I had the opportunity to learn about the Land Acquisition Act 1960 as part of my course. If the developer has the permission from the state authority, it means he can do it. The valuers would normally use comparison method to value your property. In this process, you can claim for disturbance claim as you are forced to relocate. In the act, it states the acquiring body shouldn't stand to gain from the acquisition and the landlord should be provided the amount he loses from disposing the property. Also, note that if it is a compulsory acquisition, the Land Administrator must provide a gazette.

You're allowed to appeal if you aren't happy with the compensation provided but it is only valid for measurement of land, person(s) who receive the compensation, amount of compensation and allocation of compensation.
2Chio4U P
post Feb 7 2021, 09:44 AM

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QUOTE(grahamaker94 @ Dec 29 2020, 10:19 PM)
Thank you so much. Does LAA account for the building in the land or any recent renovation costs incurred of the landowner? Or is the valuation purely on the land size according to the area market price?

What kind of dialogue will typically go down in the meetings?

My area doesn't seem to be drafted into the RTS plan but to be honest it is a prime land, 10 minutes to RTS station. Most likely will be acquired for commercial use instead of public if someone ever comes to acquire our area. To be honest, I'd love to stay here forever if I could but I still want to learn more about LAA just in case the government with the developers force their way which isn't uncommon for Malaysia.

Do you think I should start house hunting?

Again, thank you for being so detailed with your answers. It's what I really needed.
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Improvements made after the gazette has been made would be ignored. They would calculate the building cost and add depreciation to it as what really appreciates is your land. The valuation weightage is always from the land and it is always derived from previous transactions within your area with similar features.

I don't think you should go for house hunting yet unless a Land Administrator has served you with a notice that your house has been set under compulsory acquisition. I think it is best to check with your local land office if a gazette has been placed.
AgentVIDIC
post Feb 7 2021, 10:30 AM

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QUOTE(icemanfx @ Dec 30 2020, 01:19 AM)
yes, the gomen acquired a portion of my land for mrt.

a experienced valuer should be familiar with the process. with the right guidance, laa is not scary but great opportunity.

ManutdGiggs
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Hi, may i ask, if government wanted to acquire your land, do we take government's valuation as good? Because their valuation is normally very very very low?

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icemanfx
post Feb 7 2021, 10:38 AM

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QUOTE(AgentVIDIC @ Feb 7 2021, 10:30 AM)
Hi, may i ask, if government wanted to acquire your land, do we take government's valuation as good? Because their valuation is normally very very very low?

icon_question.gif  icon_question.gif  icon_question.gif
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JPPH valuation is based on past transactions, tend to be lower than 'perceived current market value'. it is advisable to appoint your own valuer to justify your counter claim.

AgentVIDIC
post Feb 8 2021, 11:27 AM

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QUOTE(icemanfx @ Feb 7 2021, 10:38 AM)
JPPH valuation is based on past transactions, tend to be lower than 'perceived current market value'. it is advisable to appoint your own valuer to justify your counter claim.
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Oh ok, yeah so we have the right to appoint out own valuer in the event of:

1. government acquisition
2. land sale (as government valuation is lower hence the RPGT will be very HIGH!)

correct?
icemanfx
post Feb 8 2021, 11:45 AM

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QUOTE(AgentVIDIC @ Feb 8 2021, 11:27 AM)
Oh ok, yeah so we have the right to appoint out own valuer in the event of:

1. government acquisition
2. land sale (as government valuation is lower hence the RPGT will be very HIGH!)

correct?
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On land acquisition, it is highly recommended to appoint own valuer.

On rpgt, lhdn only take jpph valuation.

digitalz
post Feb 9 2021, 03:30 PM

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QUOTE(AgentVIDIC @ Feb 8 2021, 11:27 AM)
Oh ok, yeah so we have the right to appoint out own valuer in the event of:

1. government acquisition
2. land sale (as government valuation is lower hence the RPGT will be very HIGH!)

correct?
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For RPGT, I've seen cases where the value of the land through the LHDN is higher than the purchase price. LHDN will tell you the land is under-valued so you can appeal against it if you are not happy with it.
icemanfx
post Feb 9 2021, 04:59 PM

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QUOTE(digitalz @ Feb 9 2021, 03:30 PM)
For RPGT, I've seen cases where the value of the land through the LHDN is higher than the purchase price. LHDN will tell you the land is under-valued so you can appeal against it if you are not happy with it.
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Appeal could end in either unchanged, reduced or increased value.

digitalz
post Feb 9 2021, 05:15 PM

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QUOTE(icemanfx @ Feb 9 2021, 04:59 PM)
Appeal could end in either unchanged, reduced or increased value.
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Yep. I've seen a few that's remained unchanged despite the lower price stated in the SPA.
carz
post Apr 22 2022, 02:45 PM

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QUOTE(wejazzitup @ Dec 30 2020, 10:55 AM)
I fully emphathise with your situation especially if the house brings sentimental value to you. Unfortunately the laws in Malaysia are such that when the governement wants to trigger LAA, there is very little you can do to keep the land (even if its freehold). What you can do is to fight for a higher valuation for the house. And yes, do be on a lookout for a new house.

Based on my experience working with valuers, renovations (such as extensions done to the house) will be factored into the value of the house PROVIDED those extension plans are approved by the local authority -- and you will need to provide the documentary evidence. If the extension is done without approvals, then the area done via the extension will not be part of the valuation, and anything built on top of the extended area (e.g built in cabinets etc) will not be factored into the house value.
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From your experience, does the land administrator usually follow the private valuer's valuation, especially if he factor in development potential of the land, building cost, and other factors, on top of the land value?

Things that the govt valuer might have omitted or missed?

How many percent of the cases goes to High Court for appeal?

carz
post Apr 22 2022, 02:52 PM

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QUOTE(wejazzitup @ Dec 30 2020, 04:33 PM)
For doing the groundwork to survey the building, they'll assign some junior. But the person signing reports will be a senior qualified guy. And if the matter escalates and goes to court, the senior qualified guy will be the one presenting the case.
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Won't the big firms like Henry Butcher, Rahim & Co, C H Williams Talhar be very expensive? Expecially if you need follow up rebuttal and court appearances? They will do the presentation during the LAA enquiry stage right?

PAChamp
post Apr 22 2022, 03:19 PM

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QUOTE(carz @ Apr 22 2022, 02:52 PM)
Won't the big firms like Henry Butcher, Rahim & Co, C H Williams Talhar be very expensive?  Expecially if you need follow up rebuttal and court appearances?  They will do the presentation during the LAA enquiry stage right?
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Valuers fees are fixed by scale and the costs of the valuer is borne by the acquiring body. So go ahead and find the best you can get.
mini orchard
post Apr 22 2022, 04:42 PM

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Del.

This post has been edited by mini orchard: Apr 22 2022, 04:58 PM
carz
post Apr 22 2022, 04:50 PM

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QUOTE(PAChamp @ Apr 22 2022, 03:19 PM)
Valuers fees are fixed by scale and the costs of the valuer is borne by the acquiring body. So go ahead and find the best you can get.
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Thanks for the reply. Does the fee being covered by the govt /acquisition body cover everything, incl report, initial enquiry presentation, rebuttals and subsequent high court hearing?

Do you need to pay them upfront and claim fees from the govt or they will claim it on your behalf?
carz
post Apr 22 2022, 05:01 PM

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I understand that the owners are given 3 months from date of issuance of borang E to object to the land acquisition at the court.

Have anyone done that successfully, and for what reasons?
I understand that section 3 (1) © allows the pejabat tanah to acquire the land for RESIDENTIAL purpose.

But the law doesn't state whether it can or cannot do they acquisition on behalf of a private developer.

Have anyone challenge the legality of the Land Office acquiring it on behalf of a private developer? And what's the outcome of the court cases?



PAChamp
post Apr 22 2022, 06:00 PM

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QUOTE(carz @ Apr 22 2022, 05:01 PM)
I understand that the owners are given 3 months from date of issuance of borang E to object to the land acquisition at the court.

Have anyone done that successfully, and for what reasons?
I understand that section 3 (1) © allows the pejabat tanah to acquire the land for RESIDENTIAL purpose.

But the law doesn't state whether it can or cannot do they acquisition on behalf of a private developer.   

Have anyone challenge the legality of the Land Office acquiring it on behalf of a private developer?  And what's the outcome of the court cases?
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Bro, you are worrying over nothing as nothing has happened yet. Only after you receive the Notice of intended acquisition, then go seek a lawyer to represent you. All your questions can be referred to lawyer but expect to pay some fees lah... No free lunch...

 

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