Understanding an SPA - (Part 2)

In this Part 2, the writer continues to explain some additional terms and conditions of a normal and typical
transaction relating to the purchase of a Property from a Vendor, other than a developer.

Memorandum of Transfer or Deed of Assignment

When the Vendor signs a SPA to sell his Property, he is normally required to simultaneously sign a
Memorandum of Transfer (Form 14A) (“Transfer”), in a case of a Property with title, or a Deed of Assignment
(“Assignment”), in a case of a Property without title.

The Transfer or Assignment is usually deposited with the Purchaser’s Solicitor as stakeholder. Sometimes the
Assignment is kept by the Vendor’s Solicitor as stakeholder until the Purchaser bank’s (“Purchaser’s Bank”) has
given a written undertaking to the Vendor to release the Loan to enable the Purchaser to complete the
transaction.

Developer’s consent

In a case of a sale of Property without title, it has been the practice to require the Vendor to obtain the consent
of the Developer to the sub-sale of the Property from the Vendor to the Purchaser (“Developer’s Consent”).
The Developer will normally grant its consent when the conditions stipulated by the Developer are complied
with, including the settlement of an administrative fee, all outstanding charges due in respect of the Property,
and receipt of certain documents, e.g. the Receipt & Reassignment (“R&R”)(if applicable).

Delivery of documents by Vendor

The SPA will provide for the Vendor to deliver the following documents upon or after the signing of the SPA and
payment of the Deposit of 10%:

• Duly executed Transfer or Assignment

• Quit rent and assessment receipts for the current year

• Certified copy of Vendor’s NRIC, Income tax reference no. and place of assessment, if any

• Redemption statement of the Vendor’s bank.

The purchase of a Property without title usually requires the Vendor to produce all documents tracing the
transactions from the original purchaser to the Vendor, including all SPAs, loan agreements, Assignments and
R&R.

Adjudication of Transfer or Assignment and Receipt and Reassignment (“R&R”)

Adjudication is the process of determining the stamp duty payable on the instrument of Transfer or
Assignment. Stamp duty is payable on the relevant instrument based on its consideration or market value,
whichever is higher.

The Transfer or Assignment is submitted by the Purchaser’s Solicitor to the Pejabat Duti Setem, Lembaga Hasil
Dalam Negeri, and this will involve the valuation of the Property by the Valuation Department. Nowadays, the
adjudication process has been computerised in some States, and computerised adjudication will normally take
2-3 weeks to be completed. The manual adjudication will take 2-3 months.

Once the Purchaser’s Solicitor has received the Stamping Notice (Notis Taksiran) from the Pejabat Duti Setem,
he will proceed to stamp the Transfer provided that the Purchaser has deposited the correct amount of stamp
duty with him. The stamp duty is usually deposited earlier by the Purchaser to avoid any delay in the payment
of the same.

The ad valorem stamp duty must be paid within 30 days of the date of the notice, failing which, a penalty is
chargeable.

Unlike a Transfer, an Assignment will not be dated or sent for adjudication, soon after the date of the SPA.
Where the rights over the Property have been assigned by the Vendor as security to the Vendor’s Bank, such
rights have to be reassigned by the Vendor’s Bank to the Vendor by way of the R&R. The R&R is to be signed
by the Vendor and the Vendor’s Bank.

Once the Redemption Sum is paid by the Purchaser or the Purchaser’s Bank, as the case may be, and a copy of
the R&R is received by the Purchaser’s Solicitor from the Bank, the Purchaser’s Solicitor will date the
Assignment and submit the Assignment for adjudication and subsequent payment of ad valorem stamp duty.
(This is one of the reasons why the purchase of a Property without title takes longer to complete than a
Property with title). Based on the Purchaser’s Solicitor’s earlier undertaking to the Purchaser’s Bank, he will
then forward the duly adjudicated and stamped Assignment to the Purchaser’s Bank’s or its Solicitor.

Redemption Statement from Vendor’s bank and release of documents

The Vendor’s Solicitor or the Purchaser’s Solicitor (in a case where the Vendor is not represented) will write to
the Vendor’s Bank for a redemption statement, which will set out the amount owing by the Vendor
(“Redemption Sum”). The Vendor’s Bank is usually requested to furnish an undertaking to refund the
Redemption Sum in the event that (a) the discharge of the Vendor’s Bank cannot be registered for any reason
(for Property with title) or (b) the R&R or the Assignment cannot be perfected for any reason.

The Vendor’s Bank is also required to give to the Purchaser or the Purchaser’s Bank a letter of undertaking that
upon the receipt of the Redemption Sum by the Vendor’s Bank:

(1) it will release the original title, duplicate charge and instrument of discharge to the Purchaser’s Solicitor (in
a case of Property with title); or

(2) it will deliver the duly executed R&R, original loan documents and other documents in its possession (in a
case of Property without title).

Disebabkan hartanah terbabit didalam bentuk “geran induk” pemaju akan membina perjanjian asing
yang mana ia dipanggil Surat Ikatan Tugasan (Deed of Assignment atau DOA). Pada dasarnya ia
bertujuan untuk membuktikan bahawa pihak pemaju sebagai pemilik tanah bersetuju dan berjanji
untuk membenarkan anda sebagai pemilik sementara menggunakan hartanah ini tetapi tertakluk
pada syarat dan terma yang terkandung didalam perjanjian DOA yang telah di setem. Walau pun
anda yang membayar wang ansuran bulanan, rumah itu tetap bukan hak milik anda sehinggalah
adanya sijil pegangan strata atau lebih dikenali sebagai “Strata Title”(untuk rumah bertingkat) atau
Sijil pegangan individu “Individual Title” (untuk rumah bertanah) dikeluarkan.

Sham
pada 14/09/2016
salam, saya dalam proses untuk buat proses pindahmilik rumah saya yang di beli pada tahun
2010…masalah sekarang saya tidak ada lagi salinan (hilang) untuk Deed of Assigment (By way of
transfer) yg diperlukan utk pindahmilik…pejabat lawyer yg uruskan pembelian rumah pun dah
tutup/bungkus…hubungi penjual rumah tetapi dia pun tak jumpa salinan DOA tersebut…
Bagaimana cara terbaik untuk dapatkan salinan DOA (By way of transfer) yang dibuat dahulu?
…kalau tidak, terpaksa bayar semula duti setem…naya…

c-mi
pada 09/11/2016
doa atau deeds of assigment pada pemaju lah
kalau pemaju bankrupt.. dia ada liquidator.. cari liquidator..
bila dah ade referance.. doa ni soh lawyer awak buat..
awak lantik je lawyer baru..

Deed of Assignment is actually a legal document initiated to assign rights, title and interests from an assignor to
the assignee where title is not yet issued to the property. For example, a vendor assigns to the purchaser. If the
purchaser takes a bank loan, then the purchaser will next assign the property to the purchaser's financier. If so,
two deeds of assignment will be applied to complete the assignment from the initial vendor to the purchaser's
financier. Deed of Assignment is important because this is the legal document to assign the rights, title and
interest to the rightful proprietor within the completion date of the sale & purchase agreement.
Adjudication fees will be assessed and paid on the deed of assignment to finalise the assignment within the
completion date. Any delay, late penalty will be incurred. As for property with title issued, the Memorandum of
Transfer (MOT) under statutory form 14A National Land Code 1965 is applied since this is a statutory instrument
meant only for the purposes of transfering from the transferor to the transferee. For example, in a sale &
purchase transaction, the vendor executes a MOT by transfering the property free from encumbrances to the
purchaser(transferee) within the completion date. Where the assignment is applied for property, (where title is
not yet issued), upon the issuance of title, the MOT will be applied to complete the transfer. The property cannot
remain not transferred without the use of MOT because the land office only accepts presentation for registration
by way of a duly adjudicated & executed stamped MOT.