2 6 O CT O B E R 2 0 2 1

CONVEYANCING
PRACTICE
COURSE CODE: LLB 40403
Presentation VARIOUS PROPERTY DEALINGS/TRANSACTIONS
Overview SALE AND PURCHASE OF PROPERTY - SUBSALE
APPOINTMENT OF SOLICITORS
PRE CONDITIONS PRIOR TO FORMATION OF A SALE AND PURCHASE
AGREEMENT
PRELIMINARY SEARCHES AND INQUIRIES
TITLE SEARCH AT THE RELEVANT LAND OFFICE/LAND REGISTRY
PARTIES RELEVANT TO A SALE AND PURCHASE TRANSACTION
SOLICITORS' CHECKLIST FOR A SALE AND PURCHASE AGREEMENT
PROPERTY SALE AND PURCHASE
DEALINGS/ AGREEMENT - SUBSALE
TRANSACTIONS
SALE AND PURCHASE PERFECTION OF TRANSFER
AGREEMENT UNDER SCHEDULE
G & H OF THE HDA Presentations are communication tools
that can be used as demonstrations.
HOUSING LOAN/FINANCING OF TENANCY AGREEMENT
PROPERTY Presentations are communication tools
that can be used as demonstrations.

SETTLEMENT OF LOAN JOINT VENTURE AGREEMENT

Presentations are communication tools
that can be used as demonstrations.
Sale and Purchase of
Property - SUBSALE
SALE AND PURCHASE
AGREEMENT
SUBSALE

1. Sale and Purchase Agreement are not prescribed by

Statute.
2. Sale and Purchase of Property where building is
completed and certificate of fitness for occupation (CF)
or certificate of completion and compliance (CCC) issued
by the Local Authorties (PBT).
3. Sale and Purchase of Property where Purchaser purchase
a Property from a Vendor who is not a Developer.
4. Basic terms and conditions mutually agreed by Purchaser
and Vendor under the Sale and Purchase Agreement.
 SOLICITOR TO ACT FOR ONE
Appointment PARTY ONLY
of Solicitors Who is a Lawyer?
1.Advocates & Solicitors who possess a valid practising certificate
for Sale and issued by the Registrar of the High Court of Malaya (Section 29 of
the LPA 1976)
2.Members of the Bar Council Malaysia (Section 43 of the LPA
Purchase 1976)
Solicitors Remuneration Order, 2006
Agreement Order 7. No acting for more than one party
(1) In any transaction referred to in the First, Second, Third and
Fourth Schedules, a solicitor shall not act for more than one party in
a particular transaction.
(2) Notwithstanding subparagraph (1), a solicitor may, where
there is no conflict of interest, prepare, file or witness the
miscellaneous documents specified in the Fifth Schedule for
another party to the transaction.
Purchaser and Vendor to
Engage own Solicitor
First Question Solicitor has to ask the
Purchaser is 'Whether the Vendor has
appointed his own Solicitor to act for him' in
respect of the Sale and Purchase Agreement?

A Solicitor shall act for one party only in any transaction under the
First, Second, Third and Fourth Schedules of the 'Solicitors'
Remuneration Order' but may witness or attest the signature of the
other party without charge.

The Purchaser's Solicitors is professionally NOT allowed to act for

the Vendor.
Solicitors in a Sale and Purchase
transaction

To ensure that the obligations of the Vendor and Purchaser are clearly
spelt out in the Sale and Purchase Agreement

Stages involved in the sale and purchase of Property may be

classified into two parts:-
1. Preliminary Stage
2. Completion Stage
PRIOR TO THE FORMATION OF A SALE
AND PURCHASE AGREEMENT

PRE-CONDITIONS
 Pre-Conditions
1 Ensure there is no conflict of interest or potential
conflict of interest.
[Note: Solicitors must not act or purport to act for both the
Vendor and the Purchaser in the same transaction].

To obtain instructions with regards to the sale and

2
purchase transaction
[Names of parties, property details, payment terms, particulars
of any tenancies in respect of the property and if so, whether
property sold with vacant possession or subject to existing
tenancy, name and contact, particulars of the Vendor’s
Solicitors, if any and any other salient/principle terms etc].
 Pre-Conditions

To ascertain if a letter of offer i.e. offer to purchase

3
has been executed by the parties.
If yes, to obtain a copy and to ascertain deadline for
execution of the Sale and Purchase Agreement, if any.
[Note the deadline for execution of Sale and Purchase
Agreement].

4 To carry out searches and enquiries pertaining parties to

the Sale and Purchase Agreement and Property
Preliminary Searches and Inquiries prior to the preparation
of a Sale and Purchase Agreement.
PRELIMINARY REQUEST ON DOCUMENTS - MAIN DOCUMENTS
SEARCHES 1 a. For individuals, identity card (or passport, if foreigner) of the Vendor
and Purchaser.
AND b. For companies, certified true copy of the Memorandum and Articles
of association, latest Forms 49, 44 and all Forms 24, and the Board of
ENQUIRIES Directors’ and members’ (if applicable) resolutions authorising the
entry into the Sale and Purchase and execution of the Sale and
PRIOR TO PREPARATION OF Purchase Agreement and associated documents.
SALE AND PURCHASE c. Issue document of title.
AGREEMENT d. Principal Documents (Previous SPA/Loan Agreements)
e. Current quit rent receipt and assessment receipt.
f. Offer to Sale and Purchase between the Vendor and Purchaser
LOCUS
2 a. To determine whether the Vendor and Purchaser has locus to sell
and buy the Property
b. To conduct a bankruptcy or winding up searches
c. To conduct a company search
PRELIMINARY CONDUCT SEARCH ON THE LAND TITLE
SEARCHES 3 a. Take note of any encumbrances on the property including charges or
caveats, restrictions in interest, express conditions, any special
AND conditions such as 'Malay Reserved land'.
b. Highlight results to client if the search discloses anything different
ENQUIRIES or more than what your client may have been informed by the Vendor
PRIOR TO PREPARATION OF
or believes to be the case.
SALE AND PURCHASE
AGREEMENT
PRE-REQUISITES (IF APPLICABLE)
4 Note whether the sale and purchase of Property requires parties to
obtain consent for the sale of the Property from relevant authorities or
Confirmation from Developer for without title case.
PRELIMINARY ADVISE CLIENT OF YOUR CHARGES
SEARCHES 5 Note the provisions of the Solicitors’ Remuneration Order 2005,
Solicitors Remuneration (Amendment) Order 2016 and Solicitors
AND Remuneration (Amendment) Order 2017 in respect of the mandatory
scale of rates for the conduct of sale and purchase transactions and
ENQUIRIES related matters thereto.
PRIOR TO PREPARATION OF a. To give an estimate cost incurred in relation to the sale and
SALE AND PURCHASE purchase transaction.
AGREEMENT b. It is prudent for a proper title search to be conducted at first to
verify the type of Property, ownership, existence of restriction in
interest and encumbrance.
MAIN PARTIES TO A SALE AND PURCHASE AGREEMENT
 PARTIES RELEVANT TO A SALE
AND PURCHASE AGREEMENT

THE THE THE VENDOR'S THE VENDOR

PURCHASER PURCHASER'S SOLICITORS
SOLICITORS
 VENDOR
PURCHASER

-Being party that sells property;

-Being party that -Legal capacity to sell the
purchase/buy the property; and
property; and -Registered Proprietor
-An obligation to settle (ownership registered at the land
the purchase price in full office for individual title case)
to the Vendor, the OR
manner of which shall be -Beneficial ownership (owner of a
provided in the Sale and parcel where the title of property
Purchase Agreement. has yet to be issued and that the
Developer is still the registered
owner of the master title).


PURCHASER'S
SOLICITORS
-Solicitors acting on behalf of the Purchaser;
-To ensure that the property is properly
conveyed/transferred to the Purchaser; and
-To carry out title search at the land office to verify
that Vendor is the rightful owner of the property
(for Property with individual title);
OR
-To confirm with the Developer the beneficial
ownership of the property who is the registered
owner of the master title ( for Property without
title).
VENDOR'S
SOLICITORS
-Solicitors acting on behalf of the Vendor;
-To ensure that the purchase price is received by the
Vendor within the Completion Date;
-To ensure that the title to the property is rendered
clean and delivered to the Purchaser’s Solicitors free
from encumbrances;
-Responsibility to apply and obtain the consent to
transfer from the appropriate authority where the
property is subject to restriction in interests (if any); -
Responsibility to redeem the Vendor’s existing loan
and perfect the discharge of charge (for property with
Individual title)/deed of receipt and reassignment (for
property without title) from the Vendor’s financier.

 PARTIES RELEVANT TO A SALE AND PURCHASE
TRANSACTION
THE VENDOR'S
FINANCIER
-Being a party involved in the
conveyancing process if the Vendor has
yet to fully settled his housing loan at
the time of sale;
-Property charged to the financier as
security for the loan taken by the
Vendor during the purchase of property;
-To release the Original Issue Document
of Title and other principal documents,
loan documents etc to the Vendor’s
Solicitors upon settlement of the
Purchaser/Borrower;
redemption sum by the Purchaser’s
loan/Vendor (as the case maybe);
-Vendor’s Solicitors to prepare
discharge of charge /deed of receipt
and reassignment for execution by the
Vendor’s financier upon settlement of
redemption sum.
THE PURCHASER'S
FINANCIER
-Being a party involved in the
conveyancing process in the event the
Purchaser obtains a housing loan to
part finance the purchase of the
Property;
-Property charged/assign by the
Purchaser/Borrower to the Financier as
security for the loan granted by the
Financier for the purchase of property.
THE PURCHASER'S
FINANCIER'S SOLICITORS
-Solicitors acting for the Financier
- Solicitors to prepare Loan
documentations
-To ensure that the bank's rights and
interests is fully protected;
- Request Confirmations and
Undertakings from SPA Solicitors
-To ensure that the Property is registered
and charged to the Financier as security
for the loan granted to the
-Responsible to apply and obtain the
consent to charge from the appropriate
authority where the property is subject to
restriction in interests (if any);
- To advise the Financier for the release
of loan facility for the settlement of
redemption sum to the Vendor's Financier
or balance facility to Vendor's Solicitors
as stakeholders for the Vendor.


CONDUCTING LAND
SEARCHES AT THE
RESPECTIVE LAND
OFFICE/LAND REGISTRY

 PRIVATE OFFICIAL
LAND LAND
SEARCH SEARCH
(Carian Persendirian) (Carian Rasmi)

Section 384 of the Section 385 (2) of the

NLC NLC
NATIONAL LAND CODE
 TYPES OF TITLE AT THE RELEVANT LAND OFFICE/
LAND REGISTRY
LAND REGISTRY (PEJABAT LAND OFFICE (PEJABAT
TANAH DAN GALIAN NEGERI) TANAH DAERAH)
1. GERAN 1. GERAN MUKIM
2. PAJAKAN NEGERI 2. PAJAKAN MUKIM
3. H.S.(D) [Hakmilik Sementara 3. H.S.(M) [Hakmilik Sementara
Daerah] Mukim]
P R O C E S S

O F W O R K

SOLICITORS' CHECKLISTS
THANK YOU!