Calculation of Premium on Land Q7

Thomas Sim PEA2066

Q.
a) Land alienation premium is determined by the State Authority upon approval of land alienation to either individual or body. The calculation of premium depends on five (5) main factors.

For Premium and Land use in Sarawak, refer here.

Using appropriate examples, explain the above factors. (10 marks)

b) Additional premium will be imposed if the State Authority approved a number of categories of application. Clarify the meaning of additional premium and explain the situations where additional premium is imposed. (15 marks)

(25 marks, 2011 Q7)

A.

a) State land can be alienated to an individual or body corporate with a lease term of 60 or 99 years with or without an express condition in the title. Before the title is issued, the applicant must pay a premium to the State Authority, usually at the office of Land and Mines (Land and Survey in East Msia). The land alienation premium is usually calculated in consideration of the following five (5) factors:

  1. Condition of the land
  2. Approved use for the land
  3. Term of lease (years)
  4. Location of the land
  5. Shape & Size of the land
b)
A number of categories of application include conversion of land use from category to category or extension of lease term to a longer duration.
Please refer to Premium on land conversion for answer to this part.

Ref:
JPPH at http://www.jpph.gov.my/mobile/pdf/Category_of_Land_Use.pdf