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ConveyancingConveyancing LawLaw andand PracticePractice LAD5093LAD5093 DR.DR. ZULKIFLIZULKIFLI HASANHASAN

ConveyancingConveyancing LawLaw andand PracticePractice

LAD5093LAD5093
LAD5093LAD5093

DR.DR. ZULKIFLIZULKIFLI HASANHASAN

CONTENTSCONTENTS
CONTENTSCONTENTS

SaleSale andand PurchasePurchase ScaleScale FeesFees CaveatCaveat CharCharggee SpecificSpecific ReliefRelief LeaseLease andand TenancyTenancy

ScaleScale FeesFees CaveatCaveat CharCharggee SpecificSpecific ReliefRelief LeaseLease andand TenancyTenancy
IntroductionIntroduction
IntroductionIntroduction

ConveyancingConveyancing isis thethe actact ofof transferringtransferring thethe legallegal titletitle inin aa propertyproperty fromfrom oneone personperson toto another.another. ToTo ensureensure thatthat thethe purchaserpurchaser securessecures thethe titletitle withwith allall thethe rightsrights thatthat runrun withwith thethe land.land.

securessecures thethe titletitle withwith allall thethe rightsrights thatthat runrun withwith thethe land.land.
RoleRole ofof solicitorssolicitors
RoleRole ofof solicitorssolicitors

TheThe lawyer:lawyer: assistassist thethe partiesparties fromfrom thethe pointpoint ofof negotiationnegotiation untiluntil thethe titletitle ofof thethe propertyproperty isis transferredtransferred toto thethe purchaser.purchaser. SolicitorSolicitor forfor thethe P:P: PP payspays thethe PPPP andand thethe ownershipownership ofof thethe propprop isis transferred.transferred. SolicitorSolicitor forfor thethe V:V: toto ensureensure thethe vendorvendor receivesreceives thethe PP.PP. YongYong && CoCo vv WeeWee HoodHood TeckTeck DevDev CorpCorp (1984)(1984) 22 MLJMLJ 39.39. LiabilityLiability inin contractcontract andand inin torttort

TeckTeck DevDev CorpCorp (1984)(1984) 22 MLJMLJ 39.39. LiabilityLiability inin contractcontract andand inin torttort
KeyKey LegislationLegislation
KeyKey LegislationLegislation

NLCNLC 19651965 CACA 19501950 LandLand AcquisitionAcquisition ActAct 19601960 StrataStrata TitlesTitles ActAct 19851985 HousingHousing DevelopersDevelopers ((Control&LicensingControl&Licensing)) ActAct 19661966 RPGTRPGT 19761976 StampStamp ActAct 19491949 SolicitorsSolicitors RemunerationRemuneration OrderOrder 19911991 SpecificSpecific ReliefRelief ActAct 19501950

SolicitorsSolicitors RemunerationRemuneration OrderOrder 19911991 SpecificSpecific ReliefRelief ActAct 19501950
OverviewOverview ofof PropertyProperty LawLaw inin MalaysiaMalaysia
OverviewOverview ofof PropertyProperty LawLaw inin MalaysiaMalaysia

TheThe landland registrationregistration system:system: thethe StateState LandLand OfficesOffices andand coordinatedcoordinated byby thethe DepartmentDepartment ofof LandLand andand Mines.Mines. PropertiesProperties cancan bebe either:either:

PropertiesProperties cancan bebe either:either: (a)(a) FFreereehhooldld –– hheeldld iinn

(a)(a) FFreereehhooldld –– hheeldld iinn perpetuperpetuiity;ty; oror (b)(b) LeaseholdLeasehold –– landland ownedowned byby thethe statestate andand leasesleases areare forfor aa termterm ofof usuallyusually forfor 30,30, 6060 oror 9999 years.years. (c)(c) MalayMalay ReservedReserved LandLand –– thethe buyingbuying andand anyany subsequentsubsequent changingchanging ofof ownershipownership isis restrictedrestricted toto BumiputerasBumiputeras only.only.

TitleTitle FreeholdFreehold oror leaseholdleasehold propertiesproperties areare eithereither issuedissued with:with:
TitleTitle
FreeholdFreehold oror leaseholdleasehold propertiesproperties areare eithereither issuedissued with:with:

(a)(a) MasterMaster TitleTitle ––moremore thanthan oneone unitunit ofof propertyproperty isis constructed.constructed. Eg.Eg. registeredregistered inin thethe namename ofof thethe developer.developer. TheThe developerdeveloper maymay submitsubmit anan applicationapplication forfor subdivisionsubdivision ofof thethe mastermaster title.title. (b)(b) IndividualIndividual TitleTitle –– issuedissued underunder thethe NLCNLC forfor landland,, houses,houses, commercialcommercial propertiesproperties thatthat areare commonlycommonly notnot multimulti--storey;storey; oror (c)(c) StrataStrata TitleTitle –– issuedissued underunder thethe StrataStrata TitlesTitles Act.Act. IssuedIssued forfor multimulti--storeystorey buildingsbuildings e.g.e.g. apartments,apartments, condominiums,condominiums, commercialcommercial propertiesproperties andand nownow eveneven forfor houseshouses inin gatedgated andand guardedguarded communities.communities.

andand nownow eveneven forfor houseshouses inin gatedgated andand guardedguarded communities.communities.
S&PS&P TransactionsTransactions
S&PS&P TransactionsTransactions

TheThe conveyancerconveyancer toto gathergather allall thethe relevantrelevant factsfacts andand informationinformation beforebefore draftingdrafting thethe S&PS&P agreement.agreement. ToTo givegive appropriateappropriate adviceadvice ToTo establishestablish whetherwhether thethe purchaserpurchaser intendsintends toto purchasepurchase thethe propprop formform thethe developerdeveloper oror subsub-- salesale transaction.transaction.

toto purchasepurchase thethe propprop formform thethe developerdeveloper oror subsub-- salesale transaction.transaction.
BuyingBuying withwith CashCash oror LoanLoan TheThe cashcash purchaser:purchaser:
BuyingBuying withwith CashCash oror LoanLoan
TheThe cashcash purchaser:purchaser:

1.1. ToTo procureprocure writtenwritten confirmationconfirmation fromfrom thethe DD toto ensurensuree thethe propertyproperty isis freefree fromfrom encumbrances.encumbrances. 2.2. InIn thethe eventevent thatthat thethe propertyproperty isis charged,charged, shallshall requerequestst fromfrom thethe D’sD’s bankbank aa redemptionredemption statementstatement cumcum letterletter ofof undertakiundertakingng beforebefore payingpaying forfor thethe purchasepurchase price.price. 3.3. TheThe purchaserpurchaser ppayay thethe redemptionredemption sumsum directlydirectly toto thethe developerdeveloper’’ss bankbank andand subsequentlysubsequently requestrequest thethe bankbank toto acknowledgeacknowledge receiptreceipt ofof thethe paymentpayment viavia aa letterletter ofof disclaimer.disclaimer. TheThe LoanLoan Purchaser:Purchaser:

TheThe LoanLoan Purchaser:Purchaser: WhoWho payspays forfor thethe propertyproperty withwith aa

WhoWho payspays forfor thethe propertyproperty withwith aa bankbank loan.loan. ItIt isis subjectsubject toto thethe bank’sbank’s ownown internalinternal andand creditcredit assessmassessmentent guidelines.guidelines.

OverviewOverview OfOf TheThe SaleSale ProcessProcess
OverviewOverview OfOf TheThe SaleSale ProcessProcess

OfferOffer toto PurchasePurchase PaymentPayment ofof firstfirst 10%10% ofof purchasepurchase priceprice SigningSigning ofof thethe (SPA),(SPA), DeedDeed ofof MutualMutual CovenantCovenant (DMC)(DMC) (if(if applicable),applicable), MOTMOT (if(if subsub--divideddivided titletitle issued)issued) ForFor nonnon--Malaysian,Malaysian, theythey areare requiredrequired toto seekseek approapprovalval fromfrom EconomicEconomic PlanningPlanning UnitUnit ((““EPUEPU””)) (if(if applicable)applicable) andand consentconsent fromfrom thethe StateState AuthorityAuthority AcceptingAccepting thethe bank’sbank’s LOLO andand signingsigning thethe loanloan documedocumentsnts PaymentPayment ofof thethe balancebalance PPPP eithereither byby cashcash oror loanloan DeliveryDelivery ofof VacantVacant PossessionPossession (Within(Within 2424 monthmonth forfor ScheduleSchedule GG oror 3636 monthsmonths forfor ScheduleSchedule H)H)

(Within(Within 2424 monthmonth forfor ScheduleSchedule GG oror 3636 monthsmonths forfor ScheduleSchedule H)H)
PropertyProperty fromfrom thethe DeveloperDeveloper S&PS&P shallshall bebe inin accordanceaccordance withwith
PropertyProperty fromfrom thethe DeveloperDeveloper
S&PS&P shallshall bebe inin accordanceaccordance withwith HousingHousing
DevelopersDevelopers ((Control&LicensingControl&Licensing)) ActAct 19661966
ActAct 19661966 IfIf landedlanded prop:prop: ScheduleSchedule GG (24(24

IfIf landedlanded prop:prop: ScheduleSchedule GG (24(24 months)months) IfIf subdividedsubdivided buildingbuilding egeg apartmentapartment oror landedlanded strata:strata: ScheduleSchedule HH (36(36 months)months) DefectDefect LiabilityLiability Period:Period: 2424 monthsmonths ManagementManagement Corp:Corp: JointJoint ManagementManagement BodyBody formedformed underunder thethe BuildingBuilding andand CommonCommon PropertyProperty (Maintenance(Maintenance andand Management)Management) ActAct

2007.2007.

SubSub--SaleSale TransactionTransaction
SubSub--SaleSale TransactionTransaction

ItIt isis governedgoverned byby thethe lawlaw ofof contract.contract. T&CT&C ofof thethe S&PS&P needneed toto bebe negotiatednegotiated btnbtn thethe parties.parties. TheThe paymentpayment ofof purchasepurchase priceprice isis usuallyusually mademade withinwithin 33 monthsmonths fromfrom datedate ofof SPASPA providedprovided thatthat nono restrictionrestriction ofof interestinterest onon thethe title.title.

datedate ofof SPASPA providedprovided thatthat nono restrictionrestriction ofof interestinterest onon thethe title.title.
PreliminaryPreliminary IssueIssue toto bebe ConsideredConsidered
PreliminaryPreliminary IssueIssue toto bebe ConsideredConsidered

PropertyProperty withwith anan individualindividual issueissue documentdocument ofof titletitle landedlanded oror stratastrata PropertyProperty withoutwithout title,title, hashas yetyet toto bebe issued.issued. LeaseholdLeasehold oror freeholdfreehold SubjectedSubjected toto anyany restrictions,restrictions, liens,liens, caveats,caveats, andand charges.charges. IndividualIndividual purchaserpurchaser oror multiplemultiple purchaserspurchasers ForeignersForeigners

IndividualIndividual purchaserpurchaser oror multiplemultiple purchaserspurchasers ForeignersForeigners
PreliminaryPreliminary SearchesSearches
PreliminaryPreliminary SearchesSearches

LandLand titletitle BankruptcyBankruptcy searchsearch OtherOther searchessearches BankBank Statement:Statement: ifif propertyproperty isis stillstill underunder bankbank financing.financing. RequestRequest fromfrom thethe vendor,vendor, thethe bankbank statement.statement.

bankbank financing.financing. RequestRequest fromfrom thethe vendor,vendor, thethe bankbank statement.statement.
LandLand TitleTitle SearchSearch
LandLand TitleTitle SearchSearch

ToTo ascertain:ascertain:-- TheThe existingexisting proprietorproprietor ofof thethe propprop PropertyProperty isis encumberedencumbered oror notnot AnyAny restrictionrestriction inin interestinterest AnyAny typetype ofof caveatcaveat LandLand acquisitionacquisition FreeholdFreehold oror leaseholdleasehold IfIf leasehold,leasehold, expiryexpiry datedate ofof thethe leaselease ChargeeChargee ofof thethe propprop

IfIf leasehold,leasehold, expiryexpiry datedate ofof thethe leaselease ChargeeChargee ofof thethe propprop
BankruptcyBankruptcy andand WindingWinding--upup SearchSearch
BankruptcyBankruptcy andand WindingWinding--upup SearchSearch

SearchSearch onon thethe vendorvendor-- ifif bankrupt,bankrupt, unableunable toto sell.sell. OAOA wouldwould stopstop intointo thethe vendor’svendor’s shoes.shoes. SearchSearch onon thethe company.company. RegisterRegister andand SearchSearch atat (cost(cost atat RM12):RM12):

andand SearchSearch atat (cost(cost atat RM12):RM12): www.ewww.e--services.com.myservices.com.my

www.ewww.e--services.com.myservices.com.my www.myeg.com.mywww.myeg.com.my www.rilek.com.mywww.rilek.com.my

CCMCCM SearchSearch
CCMCCM SearchSearch

ToTo ascertainascertain whowho thethe directorsdirectors andand shareholdersshareholders ofof thethe co.co. RegisteredRegistered addressaddress andand businessbusiness address.address.

ofof thethe co.co. RegisteredRegistered addressaddress andand businessbusiness address.address.
DraftingDrafting thethe S&PS&P PropertyProperty withwith TitleTitle
DraftingDrafting thethe S&PS&P PropertyProperty withwith TitleTitle

PartiesParties toto thethe AgreementAgreement RecitalsRecitals DepositDeposit sumsum ConditionCondition precedentprecedent ModeMode ofof paymentpayment TimeTime PeriodPeriod

DepositDeposit sumsum ConditionCondition precedentprecedent ModeMode ofof paymentpayment TimeTime PeriodPeriod
DraftingDrafting ofof thethe S&PS&P withoutwithout titletitle
DraftingDrafting ofof thethe S&PS&P withoutwithout titletitle

EssentialEssential preliminariespreliminaries RecitalRecital CPCP ModeMode ofof PaymentPayment DocumentationDocumentation andand executionexecution ofof documentsdocuments RPGTRPGT RedemptionRedemption ofof thethe propprop LodgmentLodgment ofof privateprivate caveatcaveat byby purchaserpurchaser NonNon--perfectionperfection ofof thethe deeddeed ofof assignmentassignment

caveatcaveat byby purchaserpurchaser NonNon--perfectionperfection ofof thethe deeddeed ofof assignmentassignment
Cont…Cont…
Cont…Cont…

DocumentationDocumentation andand executionexecution ofof documentsdocuments affectingaffecting thethe transfertransfer ProcedureProcedure forfor redemptionredemption formform thethe existingexisting chargeechargee ReleaseRelease ofof moniesmonies ofof balancebalance PPPP RPGTRPGT SuperveningSupervening EventsEvents VacantVacant possessionpossession MiscellaneousMiscellaneous clausesclauses

SuperveningSupervening EventsEvents VacantVacant possessionpossession MiscellaneousMiscellaneous clausesclauses
ParticularsParticulars inin S&PS&P 1.1. 2.2.
ParticularsParticulars inin S&PS&P
1.1.
2.2.

3.3.

PartiesParties toto thethe agreementagreement andand datedate Recitals:-Recitals:- RepresentationRepresentation byby thethe vendorvendor asas toto titletitle WhetherWhether propertyproperty encumberedencumbered ((egeg ChargeCharge toto financier)financier) WhetherWhether therethere isis restrictionrestriction ofof interestinterest onon titletitle andand whetherwhether consentconsent fromfrom statestate authorityauthority isis requiredrequired forfor transfertransfer ofof propertyproperty

isis requiredrequired forfor transfertransfer ofof propertyproperty OperativeOperative PartPart ofof Agreement-Agreement-

OperativeOperative PartPart ofof Agreement-Agreement-

OperativeOperative PartPart ofof thethe S&PS&P 1.1. 2.2. 3.3.
OperativeOperative PartPart ofof thethe S&PS&P
1.1.
2.2.
3.3.

ConsiderationConsideration clauseclause PurchasePurchase PricePrice ofof propertyproperty ObligationObligation ofof vendorvendor ToTo applyapply forfor consentconsent toto transfertransfer ToTo deliverdeliver vacantvacant possessionpossession ToTo paypay RealReal PropertyProperty GainsGains TaxTax ObligationsObligations ofof thethe purchaser-purchaser- ToTo paypay thethe purchasepurchase priceprice ToTo bearbear costscosts ofof stampstamp dutyduty andand registrationregistration feefee foforr transfertransfer

registrationregistration feefee foforr transfertransfer 4.4. 5.5. ExecutionExecution ofof TransferTransfer

4.4.

5.5. ExecutionExecution ofof TransferTransfer contemporaneouslycontemporaneously withwith thethe S&PS&P

6.6. DeadlineDeadline forfor paymentpayment ofof balancebalance ofof purchasepurchase priceprice

Cont.Cont. 7.7. GraceGrace PeriodPeriod forfor paymentpayment ofof balancebalance ofof purchasepurchase priceprice 8.8.
Cont.Cont.
7.7. GraceGrace PeriodPeriod forfor paymentpayment ofof balancebalance ofof purchasepurchase priceprice
8.8. DeliveryDelivery ofof vacantvacant possessionpossession uponupon paymentpayment ofof balanbalancece
ofof purchasepurchase priceprice
9.9. Vendor’sVendor’s rightright toto forfeitforfeit 10%10% ofof purchasepurchase priceprice uponupon
terminationtermination ofof agreementagreement byby purchaserpurchaser
ofof agreementagreement byby purchaserpurchaser 11.11. RealReal PropertyProperty GainsGains Tax;Tax; sumsum

11.11. RealReal PropertyProperty GainsGains Tax;Tax; sumsum fromfrom purchasepurchase priceprice toto bbee setset asasididee fforor paymentpayment ooff venvenddoror’’ss RPGTRPGT

12.12. PurchaserPurchaser obtainingobtaining financefinance

13.13. ApportionmentApportionment ofof outgoingsoutgoings atat datedate ofof VPVP

14.14. CompulsoryCompulsory acquisitionacquisition byby governmentgovernment

15.15. CostsCosts toto bebe borneborne byby eacheach partyparty

16.16. TimeTime ofof thethe essenceessence

17.17. NoticesNotices

18.18. SuccessorsSuccessors inin TitleTitle

ScaleScale FeesFees Fees??:Fees??: TheThe risksrisks areare passedpassed toto thethe solicitor.solicitor. FixedFixed
ScaleScale FeesFees
Fees??:Fees??: TheThe risksrisks areare passedpassed toto thethe solicitor.solicitor.
FixedFixed ScaleScale Fees:Fees:
solicitor.solicitor. FixedFixed ScaleScale Fees:Fees: TheThe Solicitors’Solicitors’ RemunerationRemuneration

TheThe Solicitors’Solicitors’ RemunerationRemuneration OrderOrder 2005:2005: FeesFees forfor S&PS&P andand transfertransfer oror assignment.assignment. DiscountsDiscounts prohibitedprohibited Disbursement:Disbursement: costcost actuallyactually incurredincurred SolicitorSolicitor toto actact onlyonly oneone partyparty only:only: eithereither lenderlender oror borrowerborrower oror purchaserpurchaser oror borrower.borrower.

Solicitors’Solicitors’ RemunerationRemuneration OrdersOrders Solicitors’sSolicitors’s fee:fee:
Solicitors’Solicitors’ RemunerationRemuneration OrdersOrders
Solicitors’sSolicitors’s fee:fee:

1.1. thethe valuevalue ofof thethe househouse 2.2. thethe loanloan oror financingfinancing amount.amount. TheThe scalescale feesfees excludeexclude thethe following:following:-- 1.1. feesfees payablepayable onon thethe registrationregistration ofof documentsdocuments 2.2. stampstamp dutiesduties oror feesfees 3.3. auctioneers,auctioneers, valuers.valuers. 4.4. travellingtravelling andand accommodationaccommodation 5.5. miscellaneousmiscellaneous notnot exceedingexceeding RM50.RM50.

andand accommodationaccommodation 5.5. miscellaneousmiscellaneous notnot exceedingexceeding RM50.RM50.
FeesFees forfor SaleSale andand TransferTransfer
FeesFees forfor SaleSale andand TransferTransfer

11 stst scheduleschedule 11 stst RM150k=1%RM150k=1% minimumminimum RM300RM300 NextNext RM850k=0.7%RM850k=0.7% NextNext RM2RM2 M=0.6%M=0.6% NextNext RM2RM2 m=m= 0.5%0.5% NextNext RM2.5=RM2.5= 0.4%0.4% InIn excessexcess ofof RM7.5RM7.5 m=m= negotiablenegotiable butbut shallshall notnot exceedexceed 0.4%0.4% ofof suchsuch excess.excess.

ofof RM7.5RM7.5 m=m= negotiablenegotiable butbut shallshall notnot exceedexceed 0.4%0.4% ofof suchsuch excess.excess.
Charges,Charges, debenturesdebentures andand otherother securitysecurity documentsdocuments
Charges,Charges, debenturesdebentures andand otherother
securitysecurity documentsdocuments

11 stst RM150k=RM150k= 1%1% minmin RM300RM300 NextNext RM850k=RM850k= 0.7%0.7% NextNext RM2m=RM2m= 0.6%0.6% NextNext RM2m=0.5%RM2m=0.5% NextNext Rm2.5m=0.4%Rm2.5m=0.4% InIn excessexcess ofof RM7.5RM7.5 m=m= negotiablenegotiable butbut notnot exceedexceed 0.4%0.4%

Rm2.5m=0.4%Rm2.5m=0.4% InIn excessexcess ofof RM7.5RM7.5 m=m= negotiablenegotiable butbut notnot exceedexceed 0.4%0.4%
StampStamp DutyDuty
StampStamp DutyDuty

StampStamp ActAct 1949=is1949=is leviedlevied byby thethe govtgovt onon instrumentsinstruments ofof transfer.transfer. PropProp transaction=transaction= adad valoremvalorem (according(according toto thethe value)value) MOTMOT andand DOA:DOA:

toto thethe value)value) MOTMOT andand DOA:DOA: 11 s t s t RM100k=RM100k= 1%1%

11 stst RM100k=RM100k= 1%1% RM100,001RM100,001--RM500,000=RM500,000= 2%2%

AnyAny amountamount excessexcess ofof RM500k=3%RM500k=3% Charge:Charge: LoanLoan sum=0.5%sum=0.5% eacheach copy=RM10.copy=RM10.

RPGTRPGT
RPGTRPGT

GainsGains fromfrom disposaldisposal ofof residentialresidential andand commercialcommercial propertiesproperties areare taxedtaxed underunder thethe RPGT.RPGT. Objective:Objective: toto controlcontrol speculationspeculation inin landedlanded propertyproperty andand toto curbcurb anyany excessiveexcessive riserise inin realreal proprop.p. ItIt dependsdepends onon thethe holdingholding periodperiod ofof realreal propertiesproperties Exemptions:Exemptions:

1.1. onceonce--inin--aa--lifetimelifetime 2.2. disposaldisposal byby wayway ofof aa giftgift btnbtn parent-parent-child,child, spouse,spouse, etc.etc.

2.2. disposaldisposal byby wayway ofof aa giftgift btnbtn parent-parent-child,child, spouse,spouse, etc.etc.
RateRate ofof RPGTRPGT
RateRate ofof RPGTRPGT

DisposalDisposal inin 11 stst year=year= 10%10% DisposalDisposal inin 22 ndnd year=10%year=10% DisposalDisposal inin 33 rdrd year=5%year=5% DisposalDisposal inin 44 thth year=year= 5%5% DisposalDisposal inin 55 thth year=5%year=5% DisposalDisposal inin 66 thth year=year= 0%0%

5%5% DisposalDisposal inin 55 t h t h year=5%year=5% DisposalDisposal inin 66 t h t h
CaveatCaveat
CaveatCaveat

CaveatCaveat isis endorsedendorsed onon thethe IssueIssue DocumentDocument ofof titletitle NoticeNotice toto thethe worldworld thatthat thethe personperson enteringentering thethe caveatcaveat hashas aa claimclaim toto anan interestinterest inin thethe land.land. ProhibitsProhibits anyany furtherfurther dealingdealing onon thethe saidsaid landland

inin thethe land.land. ProhibitsProhibits anyany furtherfurther dealingdealing onon thethe saidsaid landland
CaveatCaveat
CaveatCaveat

PrivatePrivate caveat:caveat: SS 323323 LienLien Holder’sHolder’s Caveat:Caveat: ss 322,322, ifif therethere isis anan issuedissued documentdocument ofof titletitle whichwhich hashas beenbeen depositeddeposited asas securitysecurity forfor loan.loan. FormForm 19A19A TrustTrust caveat:caveat: ss 332,332, maymay bebe enteredentered byby thethe RR uponupon applicationapplication byby thethe trustees.trustees. FormForm 19E19E (Perpetual(Perpetual unlessunless itit isis cancelledcancelled byby thethe R.)R.) RegistrarRegistrar CaveatCaveat SS 329329 (1):(1): liableliable toto paypay compensationcompensation ifif sufferssuffers damagedamage oror lossloss arisingarising fromfrom thethe wrongfulwrongful entryentry ofof thethe privateprivate caveat.caveat.

oror lossloss arisingarising fromfrom thethe wrongfulwrongful entryentry ofof thethe privateprivate caveat.caveat.
HowHow toto LodgeLodge CaveatCaveat SS 323323 andand 324324 ofof thethe NLC:NLC:
HowHow toto LodgeLodge CaveatCaveat
SS 323323 andand 324324 ofof thethe NLC:NLC:

FormForm 19B19B whichwhich hashas toto bebe attested.attested. PCPC willwill bindbind thethe landland forfor aa periodperiod ofof 66 yrs.yrs. WongWong KuanKuan TanTan vv GambutGambut DevDev SdnSdn BhdBhd TheThe caveatorcaveator mustmust satisfysatisfy thethe courtcourt thatthat hehe hadhad caveatablecaveatable interestinterest inin thethe landland MexalandMexaland DevDev SdnSdn BhdBhd && OrsOrs vv ScoreScore OptionOption SdnSdn BhdBhd && OrsOrs MerelyMerely relyingrelying onon thethe JointJoint--ventureventure agreementagreement diddid notnot conferconfer aa caveatablecaveatable interest.interest.

thethe JointJoint--ventureventure agreementagreement diddid notnot conferconfer aa caveatablecaveatable interest.interest.
ConditionsConditions toto extendextend thethe CaveatCaveat
ConditionsConditions toto extendextend thethe CaveatCaveat

1.1. SufficientSufficient groundsgrounds forfor caveatcaveat-- TheThe onusonus ofof proofproof isis onon thethe caveator.caveator. ((KumpKump SuaSua BetongBetong SdnSdn BhdBhd vv DataranDataran SegarSegar SdnSdn BhdBhd)) A.A. TheThe applicantapplicant mustmust satisfysatisfy thatthat hehe hashas aa ‘‘caveatcaveatableable interest’interest’ inin thethe land.land. B.B. thethe evidenceevidence C.C. toto showshow onon thethe balancebalance ofof convenienceconvenience UrethaneUrethane SystemsSystems SdnSdn BhdBhd vv QuekQuek YakYak KangKang NoNo caveatablecaveatable interestinterest asas thethe claimclaim waswas basedbased onon monetarymonetary loss.loss. PengPeng DanaHartaDanaHarta NasionalNasional BhdBhd vv AstronAstron ltd-ltd- MonetaryMonetary lossloss-- notnot caveatablecaveatable interest.interest.

BhdBhd vv AstronAstron ltd-ltd- MonetaryMonetary lossloss-- notnot caveatablecaveatable interest.interest.
WithdrawalWithdrawal ofof aa privateprivate caveatcaveat
WithdrawalWithdrawal ofof aa privateprivate caveatcaveat

SS 327327 1.1. byby thethe caveator:caveator: ss 325:325: FormForm 19G19G 2.2. byby thethe Registrar:Registrar: ss 326:326: FormForm 19C19C 3.3. byby anan orderorder givengiven byby thethe court:court:

thethe Registrar:Registrar: ss 326:326: FormForm 19C19C 3.3. byby anan orderorder givengiven byby thethe court:court:
RemovalRemoval ofof CaveatCaveat SS 325:325: byby givinggiving noticenotice inin formform 19G19G andand payingpaying
RemovalRemoval ofof CaveatCaveat
SS 325:325: byby givinggiving noticenotice inin formform 19G19G andand payingpaying
thethe prescribedprescribed fee.fee.
SS 325:325: byby givinggiving noticenotice inin formform 19G19G andand payingpaying thethe prescribedprescribed fee.fee.
RemovalRemoval ofof CaveatCaveat ByBy thethe Registrar:Registrar: SS 326326 ofof thethe NLCNLC
RemovalRemoval ofof CaveatCaveat
ByBy thethe Registrar:Registrar: SS 326326 ofof thethe NLCNLC

Procedure:Procedure: FormForm 19H19H andand paypay thethe prescribedprescribed feefee UponUpon receiving,receiving, thethe RR willwill serveserve aa noticenotice ofof intendintendeded removalremoval inin FormForm 19C19C ToTo extendextend PC:PC: s326Cs326C forfor anan extensionextension orderorder toto thethe court.court.

FormForm 19C19C ToTo extendextend PC:PC: s326Cs326C forfor anan extensionextension orderorder toto thethe court.court.
RemovalRemoval ofof thethe CaveatCaveat
RemovalRemoval ofof thethe CaveatCaveat

ByBy thethe Court:Court: SS 327327 ofof thethe NLCNLC TheThe onlyonly partiesparties areare caveateecaveatee andand caveatorcaveator “the“the aggrievedaggrieved parties”.parties”. LuggageLuggage DistributorsDistributors MM SdnSdn BhdBhd vv TanTan HorHor TengTeng && AnorAnor IfIf groundsgrounds areare insufficient,insufficient, thethe caveatcaveat mustmust bebe removed.removed.

AnorAnor IfIf groundsgrounds areare insufficient,insufficient, thethe caveatcaveat mustmust bebe removed.removed.
ChargeCharge
ChargeCharge

SecuritySecurity overover thethe land.land. MustMust bebe registeredregistered inin thethe landland officeoffice inin orderorder toto bebe valid,valid, enforceableenforceable andand binding.binding. TheThe chargeechargee hashas thethe rightright toto applyapply forfor anan orderorder toto forecloseforeclose thethe land.land.

chargeechargee hashas thethe rightright toto applyapply forfor anan orderorder toto forecloseforeclose thethe land.land.
EnteringEntering aa ChargeCharge
EnteringEntering aa ChargeCharge

SS 241241 NLC,NLC, aa chargecharge maymay bebe enteredentered onon thethe wholewhole butbut notnot aa partpart onlyonly oror thethe wholewhole butbut notnot aa partpart onlyonly ofof anyany undividedundivided shareshare oror anyany lease.lease. FormForm 16A16A-- toto securesecure thethe repaymentrepayment ofof aa debt.debt. FForor aa companycompany toto regregiister:ster: FilFilee iinn tthhee fformorm 3434 ooff thethe CompaniesCompanies ActAct 19651965 withinwithin 3030 daysdays ofof thethe creationcreation ofof chargecharge pursuantpursuant toto SS 108.108. TheThe registrationregistration ofof chargecharge willwill createcreate indefeasibleindefeasible interestinterest forfor thethe chargee.chargee.

ofof chargecharge willwill createcreate indefeasibleindefeasible interestinterest forfor thethe chargee.chargee.
ChargeeChargee toto applyapply forfor orderorder forfor salesale TheThe chargeechargee hashas thethe rightright toto
ChargeeChargee toto applyapply forfor orderorder forfor salesale
TheThe chargeechargee hashas thethe rightright toto sellsell thethe propertyproperty inin thethe eventevent
thethe chargorchargor isis unableunable toto repayrepay thethe debt.debt.
SS 254254 (1):(1):
toto repayrepay thethe debt.debt. SS 254254 (1):(1): BreachBreach forfor atat leastleast 11 monthmonth oror

BreachBreach forfor atat leastleast 11 monthmonth oror suchsuch alternativealternative perperiodiod asas specifiedspecified inin thethe chargee;chargee; TheThe chargorchargor mustmust bebe servedserved aa noticenotice inin FormForm 16D16D-- UponUpon thethe expiryexpiry ofof thethe suchsuch notice,notice, thethe chargeechargee wouldwould havehave thethe rightright toto applyapply forfor anan orderorder forfor salesale ofof ththee landland SS 255:255: PayablePayable onon demanddemand-- FormForm 16E-16E- 11 monthmonth stillstill notnot paidpaid-- orderorder forfor salesale withoutwithout FF 16D.16D.

SpecificSpecific ReliefRelief
SpecificSpecific ReliefRelief

IfIf therethere isis aa breachbreach ofof thethe T&CT&C ofof aa S&P:S&P:-- 1.1. repudiationrepudiation oror rescissionrescission ofof thethe agreementagreement 2.2. thethe paymentpayment ofof liquidatedliquidated damagesdamages 3.3. toto enforceenforce aa SPSP order.order. ThThee llawaw govegoverninrningg ththee rreemmeeddyy ooff SPSP iiss ththee SSpecpecifiificc ReliefRelief ActAct 1950.1950. PalmerstonPalmerston HoldingsHoldings SdnSdn BhdBhd vv ChongChong SiewSiew EngEng (2007)(2007) 77 CLJCLJ 5656 TheThe PtPt waswas notnot entitledentitled forfor aa decreedecree ofof SP:SP: S&PS&P diddid notnot specificallyspecifically provideprovide thethe saidsaid reliefrelief andand thethe PtPt waswas entitledentitled toto liquidatedliquidated damagesdamages underunder thethe HDCLRHDCLR 1966.1966.

thethe PtPt waswas entitledentitled toto liquidatedliquidated damagesdamages underunder thethe HDCLRHDCLR 1966.1966.
TheThe TribunalTribunal forfor HomebuyerHomebuyer ClaimsClaims Easier,Easier, cheapercheaper andand fasterfaster
TheThe TribunalTribunal forfor HomebuyerHomebuyer ClaimsClaims
Easier,Easier, cheapercheaper andand fasterfaster meansmeans ofof disputedispute resolutionresolution
a)a) AA claimclaim isis filedfiled nono laterlater thanthan 1212 monthsmonths fromfrom thethe datedate ofof::

(i(i)) issueissue ofof thethe CertificateCertificate ofof ComplianceCompliance ofof thethe property;property; oror (ii)(ii) thethe expiryexpiry datedate ofof thethe defectdefect liabilityliability periodperiod asas ssetet outout inin thethe SPA.SPA. bb)) ThThee SPASPA--hhousousiingng accommoaccommoddatatiionon bbuuililtt iinn aa resresididententiiaall area.area. c)c) EachEach claimclaim doesdoes notnot exceedexceed RM50,000RM50,000 perper causecause ofof actioactionn unlessunless (i(i)) thethe claimantclaimant agreesagrees toto forgoforgo thethe balancebalance ofof thethe cclaimlaim;; oror (ii)(ii) thethe acquiescenceacquiescence ofof thethe developerdeveloper isis obtainedobtained inin wwritingriting forfor thethe mattermatter toto bebe heardheard atat thethe Tribunal.Tribunal. d)d) SPASPA isis signedsigned beforebefore 11 DecemberDecember 20022002 cancan alsoalso bebe consideredconsidered providedprovided thethe claimsclaims fulfillfulfill thethe criteriacriteria ststatedated above;above;

consideredconsidered providedprovided thethe claimsclaims fulfillfulfill thethe criteriacriteria ststatedated above;above;
TenancyTenancy andand LeaseLease
TenancyTenancy andand LeaseLease

Lease:Lease: thethe lesseelessee holdsholds anan estateestate inin thethe landland durinduringg thethe termterm ofof thethe lease.lease. AnAn interestinterest oror estateestate inin lanlandd confersconfers thethe lesseelessee withwith ownershipownership ofof thethe leaseholdleasehold estateestate duringduring thethe termterm ofof thethe lease.lease. SS 55 ofof thethe NLC:NLC: leaselease-- registeredregistered leaselease oror subleasesublease ofof alienatedalienated land.land. SS 213213 tenancytenancy exemptexempt formform registration=registration= 1.1. tenancytenancy oror subtenancysubtenancy forfor aa termterm notnot exceedingexceeding 33 yrsyrs-- ss 223223 2.2. tenancytenancy oror subtenancysubtenancy notnot exceedingexceeding 11 yr-yr- previousprevious landland law.law.

2.2. tenancytenancy oror subtenancysubtenancy notnot exceedingexceeding 11 yr-yr- previousprevious landland law.law.
DifferencesDifferences btnbtn aa TenancyTenancy andand aa LeaseLease Lease:Lease:
DifferencesDifferences btnbtn aa TenancyTenancy andand aa LeaseLease
Lease:Lease:

mustmust bebe registeredregistered underunder ss 222222 (1)(1) ofof thethe NLCNLC ExceedingExceeding 33 yearsyears WhereWhere anyany subsub--leaselease relatesrelates toto aa partpart onlyonly ofof anyany alienatedalienated landland-- notnot exceedexceed 3030 yrs.yrs. Tenancy:Tenancy:

LessLess thanthan 33 years,years, ss 213213 SubtenancySubtenancy mustmust notnot exceedexceed 33 yrsyrs and/orand/or thethe tenancytenancy periodperiod

ss 213213 SubtenancySubtenancy mustmust notnot exceedexceed 33 yrsyrs and/orand/or thethe tenancytenancy periodperiod
TenancyTenancy AgreementAgreement
TenancyTenancy AgreementAgreement

SS 223223 (2):(2): maymay bebe createdcreated verballyverbally oror inin writingwriting IdentifyIdentify thethe landlordlandlord andand tenanttenant correctlycorrectly TheThe verifyverify thatthat thethe landlordlandlord isis thethe actualactual proprietproprietoror AllAll proprietors,proprietors, toto executeexecute thethe TenancyTenancy AgreementAgreement InquireInquire :: 1.1. depositdeposit sumsum 2.2. utilitiesutilities depositdeposit 3.3. ththee seweragesewerage deposit.deposit. Duration:Duration: notnot exceedexceed 33 years.years. ExtensionExtension ofof tenancytenancy periodperiod IdentifyIdentify useuse ofof premisepremise TerminationTermination ofof thethe agreementagreement

periodperiod IdentifyIdentify useuse ofof premisepremise TerminationTermination ofof thethe agreementagreement
FeesFees forfor TenancyTenancy
FeesFees forfor TenancyTenancy

MonthlyMonthly rent:rent: forfor thethe 11 stst RM10k=RM10k= 25%25% minimumminimum RM300RM300 NextNext RM90k=10%RM90k=10% InIn excessexcess ofof RM1000,000=RM1000,000= negotiablenegotiable butbut shallshall notnot exceedexceed 10%.10%.

InIn excessexcess ofof RM1000,000=RM1000,000= negotiablenegotiable butbut shallshall notnot exceedexceed 10%.10%.
StampStamp DutyDuty onon TenancyTenancy BelowBelow RM2400=RM2400= exempted.exempted. RentRent xx 11 yr=yr= A,A,
StampStamp DutyDuty onon TenancyTenancy
BelowBelow RM2400=RM2400= exempted.exempted.
RentRent xx 11 yr=yr= A,A, AA--RM2400=B,RM2400=B, BB÷÷250=C250=C
BelowBelow RM2400=RM2400= exempted.exempted. RentRent xx 11 yr=yr= A,A, AA--RM2400=B,RM2400=B, BB÷÷250=C250=C
LandmarkLandmark CasesCases
LandmarkLandmark CasesCases

AdornaAdorna PropertiesProperties SdnSdn BhdBhd vv BonsoomBonsoom BoonyanitBoonyanit TanTan YingYing HongHong vv TanTan SianSian SanSan && OrsOrs DrDr MM MahadevanMahadevan MahalingamMahalingam vv SS LourdenadinLourdenadin && AnotherAnother casecase LeongLeong LaiLai KuenKuen vv SentulSentul MurniMurni SdnSdn BhdBhd KumpKump SuaSua BetongBetong SdnSdn BhdBhd vv DataranDataran SegarSegar SdnSdn Bhd.Bhd. LinggiLinggi PlantationsPlantations LtdLtd vv JagathesanJagathesan

BhdBhd vv DataranDataran SegarSegar SdnSdn Bhd.Bhd. LinggiLinggi PlantationsPlantations LtdLtd vv JagathesanJagathesan
AdornaAdorna PropertiesProperties SdnSdn BhdBhd vv BonsoomBonsoom BoonyanitBoonyanit (2001)(2001) 11 MLJMLJ 241241
AdornaAdorna PropertiesProperties SdnSdn BhdBhd vv BonsoomBonsoom
BoonyanitBoonyanit (2001)(2001) 11 MLJMLJ 241241

FC,FC, EusoffEusoff Chin,Chin, WanWan AdnanAdnan,, AbuAbu MansorMansor Ali.Ali. AA purchaserpurchaser inin goodgood faithfaith andand forfor valuablevaluable considerationconsideration isis excludedexcluded fromfrom thethe applicationapplication ofof thethe substantivesubstantive provisionprovision ofof ss 340340 (3).(3). SuchSuch registeredregistered proprietorproprietor obtainsobtains immediateimmediate indefeasibleindefeasible titletitle toto thethe lands.lands. EvenEven ifif thethe instrumentinstrument ofof transfertransfer waswas forged,forged, thethe respondentrespondent neverthelessnevertheless obtainedobtained anan indefeasibleindefeasible title.title.

thethe respondentrespondent neverthelessnevertheless obtainedobtained anan indefeasibleindefeasible title.title.
TanTan YingYing HongHong vv TanTan SianSian SanSan && OrsOrs [2010][2010] 22 CLJCLJ 269269
TanTan YingYing HongHong vv TanTan SianSian SanSan && OrsOrs
[2010][2010] 22 CLJCLJ 269269

FCFC revisitedrevisited thethe AdornaAdorna case.case. ((TunTun Zaki,Zaki, AlauddinAlauddin MohdMohd Sheriff,Sheriff, ArifinArifin ZakariaZakaria,, ZulkifliZulkifli AhmadAhmad MakinudinMakinudin,, JamesJames Foong).Foong). AdornaAdorna isis nono longerlonger goodgood lawlaw andand inin factfact wrong,wrong, uncertain,uncertain, unjustunjust oror outmodedoutmoded oror obsolete.obsolete. TheThe benchbench inin thethe AdornaAdorna casecase hadhad miscontruedmiscontrued s340s340 andand appliedapplied ss 340(2)340(2) whichwhich ledled toto erroneouserroneous conclusion.conclusion. TheThe courtcourt restoredrestored protectionprotection toto originaloriginal landownerslandowners fromfrom losinglosing theirtheir propertiesproperties toto forgers.forgers.

toto originaloriginal landownerslandowners fromfrom losinglosing theirtheir propertiesproperties toto forgers.forgers.
DrDr MM MahadevanMahadevan MahalingamMahalingam vv SS LourdenadinLourdenadin && AnotherAnother casecase
DrDr MM MahadevanMahadevan MahalingamMahalingam vv SS LourdenadinLourdenadin
&& AnotherAnother casecase [1988][1988] 11 CLJCLJ (Rep)(Rep) 168168

SC,SC, ((AbdAbd HamidHamid Omar,Omar, HashimHashim YeopYeop SaniSani andand SyedSyed AgilAgil BarakbahBarakbah)) TheThe SCSC decideddecided thatthat thethe CtCt hashas discretiondiscretion toto grantgrant SpecificSpecific Performance.Performance. TheThe applicantapplicant mustmust firstfirst proveprove toto thethe ctct thatthat underunder thethe circumstancescircumstances thethe casecase b4b4 thethe ctct ifif fitfit andand properproper forfor thethe grantinggranting ofof SP.SP.

thethe casecase b4b4 thethe ctct ifif fitfit andand properproper forfor thethe grantinggranting ofof SP.SP.
LeongLeong KaiKai KuenKuen vv SentulSentul MurniMurni SdnSdn BhdBhd (2004)(2004) 55 CLJCLJ 2525
LeongLeong KaiKai KuenKuen vv SentulSentul MurniMurni SdnSdn BhdBhd
(2004)(2004) 55 CLJCLJ 2525

HCHC (James(James FoongFoong)) TheThe ctct decideddecided thatthat thethe ptpt hadhad aa rightright toto claimclaim forfor damagesdamages specifiedspecified underunder aa rescindedrescinded contract.contract. TheThe claimclaim forfor damagesdamages waswas allowedallowed onlyonly forfor reasonablereasonable compensationcompensation notnot exceedingexceeding thethe sumsum claimedclaimed byby thethe Pt,Pt, whichwhich waswas toto bebe assessedassessed byby thethe SAR.SAR.

thethe sumsum claimedclaimed byby thethe Pt,Pt, whichwhich waswas toto bebe assessedassessed byby thethe SAR.SAR.
KumpKump SuaSua BetongBetong SdnSdn BhdBhd vv DataranDataran SegarSegar SdnSdn BhdBhd (1992)(1992) 11 MLJMLJ 263263
KumpKump SuaSua BetongBetong SdnSdn BhdBhd vv DataranDataran SegarSegar
SdnSdn BhdBhd (1992)(1992) 11 MLJMLJ 263263

SCSC ((JemuriJemuri SerjanSerjan,, GunnGunn ChitChit Tuan,Tuan, Charles).Charles). AnAn appealappeal fromfrom aa judgmentjudgment ofof thethe HCHC claimingclaiming thethe removalremoval ofof aa privateprivate caveat.caveat. TheThe HCHC grantedgranted thethe applicationapplication toto removeremove thethe caveat.caveat. TheThe SCSC allowedallowed thethe appealappeal andand thethe orderorder isis setset aside.aside. TheThe SCSC laidlaid downdown thethe principalsprincipals thatthat aa caveatorcaveator hashas toto showshow toto thethe RR whenwhen hishis privateprivate caveatcaveat isis challenged.challenged.

hashas toto showshow toto thethe RR whenwhen hishis privateprivate caveatcaveat isis challenged.challenged.
LinggiLinggi PlantationsPlantations LtdLtd vv JagathesanJagathesan (1972)(1972) 11 MLJMLJ 8989
LinggiLinggi PlantationsPlantations LtdLtd vv JagathesanJagathesan (1972)(1972) 11 MLJMLJ 8989

PCPC (Lord(Lord Hailsham,Hailsham, LordLord HodsonHodson,, LordLord Cross)Cross) WtrWtr aa vendorvendor waswas entitledentitled toto forfeitforfeit aa depositdeposit paidpaid onon aa contractcontract followingfollowing itsits noncompletionnoncompletion byby thethe purchaser.purchaser. TheThe termsterms ofof anan agreementagreement areare toto discoverdiscover therefromtherefrom thethe intentionintention ofof thethe parties.parties. WhenWhen thethe ctct decideddecided onon thethe issuesissues ofof liquidatedliquidated damages,damages, rulesrules ofof equityequity provideprovide thatthat thethe sumsum providedprovided inin thethe contractcontract shouldshould inin substancesubstance bebe genuinegenuine prepre--estimateestimate ofof thethe damagesdamages likelylikely toto bebe sufferedsuffered andand notnot aa penalty.penalty.

ofof thethe damagesdamages likelylikely toto bebe sufferedsuffered andand notnot aa penalty.penalty.