 URGENT

 VERY URGENT

 BY HAND
Mohd Fazreen Izuan bin Noordin  BY FAX
BLS (Hons), UITM. LL.B (Hons), UITM.
 BY POST
Muhammad Shakeel bin Mohd Saifuzzaman  BY REGISTERED POST
BLS (Hons), UITM. LL.B (Hons), UITM. DLSA, UITM.  BY COURIER
LL.M, UITM. AMIArb.
 BY COLLECTION
 BY EMAIL

IDEA FOR SOCIAL MEDIA ARTICLE POSTING-LEGALAIS

Idea 1

Do you know why the bank is hesitant in approving joint loan especially when it involves a boyfriend
and girlfriend relationship?

Let see an example of scenario with regards to joint loan with your boyfriend/girlfriend.

Agnes and her boyfriend purchased a condo 2 years ago and obtained the loan under Agnes’ name
(third party loan). Unfortunately their relationship came to an end. Agnes requested her boyfriend to
assign the undivided half shares, interest and rights in the Property to her name. She thought that this
will not affect the loan facility.

If such situation happen, her boyfriend’s undivided half shares, interest and rights in the Property can
be assigned to Agnes via Deed of Assignment (by way of transfer).

However, since the Property’s has already been assigned to bank as security for the loan; Agnes
must first obtain prior written approval of the Bank before the assignment of the boyfriend’s undivided
half shares to herself can be done. Upon bank’s written approval, the loan as well as the security
documents need to be restructured and new set of loan documentations are to be executed in order to
effect the aforesaid assignment of undivided half shares.

Therefore, it is better for you to think twice before deciding on a joint loan with your boyfriend or
girlfriend.

Idea 2

Have you ever come across an advertisement for Home Sharing? They will display a low rental but
with a very promising facilities and aesthetic looking room.

Is it the same as rent?

Home sharing faced difficulties in some areas of jurisdiction not because of the landlord-tenant law,
but due to local authorities zoning legislation.

According to the latest strata law, homeowners are allowed to rent out their rooms to paying guests up
to a maximum stay of 180 nights in a year. The law requires homeowners to register their properties
with the local authorities and to comply with the prescribed terms and conditions.

As long as one is using one’s residential property for residential purposes which includes rental
purposes, there is no need for you to apply for a business license or permits.

However, landlords and property owners should confirm the position of the local government planning
department before they start their business for short-term rental. As of now, a license is not required
for homestays or home sharing purposes and there are no guidelines in place at this moment for
short-term rentals.

From a legal standpoint, short-term rental could means operating an illegal lodging house without a
lodging house license issued by the local authority.

Always check with the authority whenever you plan to engage a new concept.

LEGALAIS
T3-22-16 3 Towers
No 296 Jalan Ampang
50450 Kuala Lumpur
Wilayah Persekutuan

T: +60 3 8408 2060 F: +60 8408 2060 W: -www.legalais.my E: hello@legalais.my

Idea 3

Water must be flowing and electricity running when handing over Vacant Possession: says Court of
Law

Hence, delivery of VP shall be completed with actual supply of water and electricity with the
connection of utility meters and this has been the legitimate expectation following the introduction of
Housing Development (Control and Licensing) Regulations 1989 (HDR 1989).

More importantly, the introduction of HDR 1989 allows the purchasers to claim for liquidated damages
for the period from the expiry of the 24 months (Schedule G & I) or 36 months (Schedule H) till the
actual supply of water and electricity to the properties if such supplies are not ready at the time of
delivery of the VP.

With this, housing developers, especially state economic agencies who deliver vacant possessions to
their purchasers without connection and supply of water and electricity supply available and expect
the purchasers or customers to queue up at TNB and Syabas or Service Providers offices are now
warned.

Upon the collection of their keys, purchasers are entitled to expect a proper supply of water, with
water running once they turn on the tap, as well as a running supply of electricity, where appliances
such as lightbulbs work when affixed and switched on.

According to Justice James Foong in Lew Yoke Leng & others v Sykt Kar King Sdn Bhd (2000) 4 CLJ
184

“It is not sufficient for the developer to just lay the pipes and cables for electricity and water to connect
the building to the substation or water mains. The developer must ensure, at the time of delivery of
vacant possession of the said building, that there is supply of water and electricity ready for tapping
into the building”

By yours faithfully,
Nurazreen
Associate