JUAL JANJI

Siti Naquiah Mohd Jamel

Mohd Azrizal Hamzi

Question 1
a) Discuss the nature, rationale
and validity of Jual Janji as one
of the land transaction in
Malaysia. (10 marks)

Nature

Literally means a sale with a promise

Posses certain characteristics e.g land used as
security is usually small
Borrower transfers land, lender takes possession

Lender

Lender pays money to borrower, borrower receives the money as loan and entitled
to resume the land upon discharging the debt
2

 Jual janji: Transfer of land belonging to

Borrower to Lender for consideration of a loan
granted by Lender with a condition or promise
to retransfer land to Borrower upon full &
final settlement of loan by Borrower within an
agreed duration.
Jual Putus: If borrower fails to redeem land
within agreed duration
3

Rationale
Practiced commonly amongst Malay Muslim
community to avoid payment of riba, come
into existence after the coming of Islam to
Tanah Melayu
To help the poor by providing loan,
duration to pay is also flexible

Validity
Can be registered by execution of set of Form
14A by the Lender as a transferor to retransfer
the land to the Borrower - upon full and final
settlement of the loan within the agreed
duration
Usually not registered lender can bring civil
action to recover debt
Security transaction or contract of sale?
5

 Recognized as Jual Janji transaction by Court

in:
Wong See Leng v Saraswathy Ammal
Abdul Hamid Saad v Aliyasak Ismail
Also by:
W.E. Maxwell -The Law and Custom of the
Malay with Reference to the Tenure of Land
s.4(2) NLC