Law Society airs concern over land ownership

Members of the Law Society of Brunei Darussalam have expressed great concern over reports in the press in relation to a policy decision by relevant authorities that seeks to render invalid certain types of equitable or beneficial interests in landed property in Brunei Darussalam, specifically where landed property is registered in the name of a citizen, but for which the beneifical or economic interest is held in trust for a permanent or temporary resident, or "ineligible person".

Since the policy has been announced, there have been no amendments to the laws relating to the ownership of and interests in land in Brunei.

The Law Society of Brunei Darussalam said this in a statement on proposed changes to the laws relating to the ownership and interests over landed property.

The Law Society wishes to state that prior to this policy announcement, there have been no published laws that specifically prohibit non-citizens from holding interests in landed property.

In decisions that date back to the 1970s until as recently as 2010, Brunei courts have on the basis of the laws of contract and equity given effect to unregistered interests in land in Brunei. In the recent past, there has also been implicit acceptance of ownership of beneficial interests in land, in relation to applications for permanent residency by temporary residents, and the requirement for proof of investment into Brunei.

Based on an understanding of what has been previously been known or permitted, individuals have arranged their affairs, made investments and conducted their business dealings.

The Law Society notes that with the policy announcement the authorities wish to take steps to invalidate all existing beneficial or trusts arrangements that are deemed "ineligible". In order to give effect to this policy a law would need to be passed that would have retrospective effect over existing arrangements.

The Law Society wishes to note its concern with the passing of any law with retrospective effect over individual's property rights, without warning or compensation.

The Law Society would state this type of action would ignore any accepted standards of the rule of law, and would set a very grave precedent which would not foster confidence both locally and internationally.

The Law Society has made representations to authorities concerned to consider with care any proposed amendments or changes to the law relating to the ownership of land and has requested for a draft of proposed laws or amendments to be circulated for the purpose of public consultation.

The Law Society strongly believes that as far as possible, changes in the law should not create uncertainty, lead to disputes and unduly cause unfairness or hardship.

The Law Society is , as always, guided by the wise leadership of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam.

The Law Society was established in 2003 by the passing of the Legal Profession (Law Society of Brunei Darussalam) Order.

By the Order, the purposes of the society are "to represent, protect and assist members of the legal profession in Brunei Darussalam" and "to protect and assist the public in Brunei Darussalam in all matters touching or ancillary or incidental to the law". It is thus one of the functions of the Law Society to raise matters of public interest.

All practising advocates and solicitors in Brunei are members of the Law Society.

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