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> MALAYSIA1Pre-Registrati<strong>on</strong>: C<strong>on</strong>tract of SaleThere are 2 types of sale and purchase of property namely:1 Purchase from property developers• The sale and purchase of property (hous<strong>in</strong>g accommodati<strong>on</strong>) which is under c<strong>on</strong>structi<strong>on</strong>from a property developer is governed by the Hous<strong>in</strong>g Development (C<strong>on</strong>trol and Licens<strong>in</strong>g)Act, 1966; or• The sale and purchase of completed property from a property developer.2 Purchase of completed property direct from owner of the property (sub-sale)• Sub-sale purchase is between the buyer and the owner; it is by way of private c<strong>on</strong>tract wherethe parties are free to dictate their respective terms and c<strong>on</strong>diti<strong>on</strong>s.5Regardless, a n<strong>on</strong>-regulated c<strong>on</strong>tract of sale between the seller and the buyer needs to be <strong>in</strong>written form, signed and duly stamped for the protecti<strong>on</strong> of the <strong>in</strong>terest of both parties <strong>in</strong> thedischarge of their respective legal obligati<strong>on</strong>s. Both seller and buyer are advised to appo<strong>in</strong>t theirown lawyer to represent them <strong>in</strong>dividually <strong>in</strong> the c<strong>on</strong>duct of the sale and purchase transacti<strong>on</strong>through completi<strong>on</strong>.Some of the salient po<strong>in</strong>ts of the Sale and Purchase Agreement (SPA) are:• Detailed particulars of the buyer and the seller;• Details of the property as specified <strong>in</strong> the Issue Document of Title (IDT);• The purchase price and the mode of payment;• Payment of the deposit, normally 10% of the purchase price;• Normally the time frame to pay the entire purchase price is with<strong>in</strong> 3 m<strong>on</strong>ths free of <strong>in</strong>terest(“Completi<strong>on</strong> Date”) plus another <strong>on</strong>e m<strong>on</strong>th extensi<strong>on</strong> period (“Extended Completi<strong>on</strong> Date”)with <strong>in</strong>terest at a mutually agreed percentage payable to the seller;• If the buyer fails to pay with<strong>in</strong> the time frame, the deposit paid will be forfeited by the sellerand the SPA resc<strong>in</strong>ded;• Inspecti<strong>on</strong> of the property and list<strong>in</strong>g of any fixtures and fitt<strong>in</strong>gs (if applicable);• The time and manner to hand over the property to the buyer; and• The remedy for any breach and liquidated damages for failures by either party.Once detailed terms of the SPA have been agreed, the buyer and seller will sign:• The SPA;• Form 14A under the Nati<strong>on</strong>al Land Code, 1965 (NLC) (for property with <strong>in</strong>dividual title); or• Deed of Assignment (DOA) (for property without <strong>in</strong>dividual title).