Guidebook on Registering Property in Malaysia.pdf
Guidebook on Registering Property in Malaysia.pdf
Guidebook on Registering Property in Malaysia.pdf
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GUIDEBOOK <strong>on</strong> REGISTERING PROPERTY <strong>in</strong> MALAYSIASTEP 1 Private Land Search <strong>on</strong> Master TitleA private land search is a process which allows a pers<strong>on</strong> to obta<strong>in</strong> up-to-date <strong>in</strong>formati<strong>on</strong> <strong>on</strong> thestatus of a particular piece of land.The <strong>in</strong>formati<strong>on</strong> stated <strong>on</strong> the private land search report is extracted from the Register Documentof Title (“RDT”) and is usually similar to the <strong>in</strong>formati<strong>on</strong> stated <strong>in</strong> an IDT. It should be noted theprivate land search report may reveal additi<strong>on</strong>al <strong>in</strong>formati<strong>on</strong> not available <strong>on</strong> the IDT such asprivate caveats or charge.To c<strong>on</strong>duct a land search <strong>on</strong> the Master Title, the lawyer has to fill up a form known as PrivateLand Search Form (Borang Permoh<strong>on</strong>an Carian Persendirian) (Appendix 2).30Submissi<strong>on</strong> is made at the Kuala Lumpur Land Registry with payment of a prescribed fee ofRM 30 per title search.Bankruptcy SearchThe search is c<strong>on</strong>ducted at the Insolvency Department of <strong>Malaysia</strong> (Jabatan Insolvensi<strong>Malaysia</strong>) to determ<strong>in</strong>e the legal status of both Johari and Hakimi.• The search is c<strong>on</strong>ducted <strong>on</strong>l<strong>in</strong>e with a prescribed fee of RM 12 per name search.• If Johari is a bankrupt, the sale transacti<strong>on</strong> requires the Official Assignee’s approval.• If Hakimi is a bankrupt, he is prohibited by law from enter<strong>in</strong>g <strong>in</strong>to a c<strong>on</strong>tract of sale and thuscannot purchase any property.W<strong>in</strong>d<strong>in</strong>g-Up Search• W<strong>in</strong>d<strong>in</strong>g-up search is c<strong>on</strong>ducted if either or both Seller and Buyer is a company.STEP 2 Sign<strong>in</strong>g of SPAHakimi and Johari will sign the SPA.• Deed of Assignment• PDS 15 (Appendix 5 or 5A)STEP 3 Redempti<strong>on</strong> StatementJohari needs to settle all of his outstand<strong>in</strong>g loan to his bank before he can sell his <strong>Property</strong> toHakimi. The SPA will address the arrangement to the effect that Johari’s outstand<strong>in</strong>g loan to hisbank will be paid by Hakimi or the bank from which Hakimi is obta<strong>in</strong><strong>in</strong>g the Loan. Such paymentwhich will form part of the purchase price is known as “Redempti<strong>on</strong> Amount”.• Johari’s lawyer will proceed to request for a Redempti<strong>on</strong> Statement from Johari’s bank.• Johari’s Bank will, up<strong>on</strong> receiv<strong>in</strong>g such request issue a Redempti<strong>on</strong> Statement usually with<strong>in</strong> 2work<strong>in</strong>g days <strong>in</strong> favour of Hakimi (if cash purchase) or <strong>in</strong> favour of Hakimi’s bank (if purchasewith Loan) as set out <strong>in</strong> Diagram 10.