Conveyancing Full Notes

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Conveyancing FULL Notes
conveyancing (Universiti Malaya)
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HANIS HAZIDI (LIA160039) Sem II 2019/2020
BOOK OF DESPARATION
CONVEYANCING
SEM II 2019/2020
BY HANIS HAZIDI

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Introduction
Wednesday, 26 February, 2020
1:07 PM
Briefing
• Prepare a conveyancing file:
o SPA - 25%
• Documentation - 15%
• Advise client 10%
o Subsale agreement Drafting (individual) - 15%
o Loan agreement - 25%
• Documentation - 15%
• Advise client - 10%
o Calculation of Legal fees and stamp duty - 10%
o Advice release/discharge of charge -10%
o Test - 15%
Introduction
• Roles of the conveyancing lawyer
o Prepare documentation
• Transfer
▪ MOT - For property with title --> Form 14A
▪ Deed of assignment - When title has not been issued/no title
• Loan/security
o Stakeholder
o Timeline
• Parties
o Vendor: Must transfer clean title to the purchaser
o Purchaser
o Vendor's solicitor: File in the RPGT form. Must file within 60 days from the execution
date as recommended by the act.
o Purchaser's solicitor: conduct land search and ensure that the vendor is the real owner
of the land.
o Vendor's financier: Deed of receipt or reassignment
o Bridging financier
o End-financier
• Titles
o Strata title/block title for high rise building
o Separate or individual title for landed house

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Schedule G
Wednesday, 11 March, 2020
1:11 PM
Introduction to Schedule G
• regulated under HDR 1989.
o property consists of land & building - Schedule G
o property consists of parcel ie a unit in a subdivided building - Schedule H
o BTS, land & building - Schedule I
o BTS, parcel in a subdivided building - Schedule J
• What is residential property?
o Schedule G, H, I or J: only for residential property (housing accomodation)
o S.3 of HD A
o Includes buildings that are part commercial and part residential like SOHO
o Also when a property is declared housing accomodation by the housing minister
• Can a lawyer/developer amend the terms in schedule G,H,I and J?
o Syarikat Chang Cheng (M) S/B) v Pembangunan Orkid Desa
• No
• Buying and selling of commercial property not prescribed by statute even if buying it from
developer
• Solicitor acting for the developer not to act for purchaser
o LPA, SRO and BC ruling: solicitors acting for the developer have to explain to the
purchaser that they cannot act for the purchaser and should inform them that they have
the right to appoint their own solicitor to act for them
• Preparing schedule G
o Developer's solicitor has to fill in the particulars required in the blanks in the preamble
of schedule G
o Particulars:
• name of the developer and its co. reg. no.
• developer's licence no.
• registered address of the developer
• name of the P, ic no and address
• name and relevant particulars of the RP of the master/individual title
• tenure of the land (if land is leasehold)
• expiry date of the leasehold land
• particulars of the master title or separate title (if issued)
• area of the master title
• name and registered office of the bridging financier (if any)
• name of the housing project
• the advertising and sale permit number of D
• lot number of the property
• area of the property
• the description of the building to be erected on the lot
• the 'type' description as given by the D

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Execution of Schedule G
• Docs to prepare for purchaser's execution
o Retainer (doc to show that you are acting for the developer despite preparing the doc is
actually for the purchaser and the purchaser is the one who paid it) - 1 copy
o MOT/ F.14A (for transfer of ownership if the property has a title already) - 2 copies -->
use one je. Lagi satu backup
o SPA - 4 copies --> 4 copies because 2 copies for purchaser, 1 for developer, 1 for lawyer
o Legal fees (if any)
• After the doc is settled, call client and ask the purchaser to execute the doc and remind them
to bring
o ic
o 10% deposit to be paid to developer
• Once meet, ask them to sign the retainer first to make it clear to the purchaser that I am acting
for the developer
• After sign the retainer, sign the MOT (explain as well)
• After MOT, sign the SPA (highlight the salient provisions in the SPA to the client)
o Salient clauses
• Clause 5
• 9
• 10
• 19
• 23
• 26
• Once developer and purchaser sign, the developer bring the SPA to his solicitor for stamping
Schedule G - salient provisions

Sunday, 28 June, 2020
6:10 PM
SPA – Purchase price of the property

Clause 4 I’d just highlight to you again that the pp is (RM3,108,888-00)
SPA – Payment of the purchase price to be made in instalments

Clause 5 • Payment will made according to the manner stated in Third Schedule
Purchaser (you) shall pay the instalments according to the stage of works
completed by the Developer
When payment is requested in accordance to 3rd schedule, a certificate signed by

the Developer’s architect or engineer in charge of the housing development and
every such certificate so signed is required as a proof of the fact that the works
therein referred to have been completed according to the stages
•
Third • Build then sell (BTS)

Schedule

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• After receiving the 10% purchase price from the Purchaser, the Developer will bill
for progressive payments according to stages of completion of the house
The Bank will release the loan sum in a progressive manner according to Third
Schedule which lays down at which stages of the construction should the
payment be made to the developer
Clause 6 *refer to the doc (ASSESSMENT 5) – got new changes there
Clause 6: loan
• o If the purchaser wants to obtain a loan for the payment of the house, he can
within 30 days after receiving stamped copy of the SPA, make a written
application for the loan to the developer. The developer then will help to find a
bank to loan the agreement.
• o If the developer finds one, then the purchaser needs to execute all necessary
loan documents and pay all fees, legal costs and stamp duty within 30 days
• o The loan can only be used for the payment of housing payment
• o If the developer found one, but the loan was not given to the purchaser
because purchaser's ineligibility of income (Example: Purchaser does not have
job / income does not meet the minimum threshold required by the bank) and
the purchaser told the developer so, developer will keep 1% of purchase price,
return the rest (if any) and cancel the SPA
• o If the purchaser fails to accept the loan/ defaulted in the requirement of loan
application causing agreement to be withdrawn by the bank, the purchaser still
need to pay the whole purchase price but pay yourself
• o If developer cannot find any bank, then developer shall within 30 days after
receipt of rejection --> notify purchaser. Nonetheless, the timeline in 3rd
schedule remains
• o After the bank has confirmed that it will pay the loan amount to the
Developer, Developer need to send the bank a letter of undertaking that the
loan money will be refunded to the bank if the land cannot be transferred to the
purchaser (land cannot be registered in your name)
Clause 10 Late payment charges

• If the purchaser pays (any instalment) later than the time prescribed in 3rd
schedule, then there will be late payment charges (interest at 10% per annum,
calculated from day to day)
• But the Developer cannot impose the charge if late payment due to:
• Relevant notice incomplete or does not comply with the requirement of s.5(2) –
Notice from developer x supported by certificate signed by Architect/Engineer
(to prove work has been completed)
• Developer failed to execute & deliver a valid and registrable instrument of
transfer (MOT) to Purchaser
Clause 11 Default by Purchaser

If the purchaser defaults in payment:
• by failing to pay any instalments set out in 3rd schedule, or
• fail to pay any sum under SPA, or

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• breach the term of SPA, or

• commits an act of bankruptcy
• the developer can annul the sale of the property and terminate the SPA
if this happens, this SPA will be cancelled, the money paid to Developer before this:
• all late payment charges shall be paid to D
• D can forfeit 10% of Purchase Price
• Residue of the fund will be refunded to you (Purchaser)
[in event of default by Purchaser, D will give at least 30-day notice to P/P’s solicitor to
cancel the SPA & after 30 days (or more) SPA is terminated, unless in the meanwhile
the breach has been rectified / P pays the unpaid instalment / subclause (3) applies
→ before the expiry of 30-day notice, Purchaser:
• obtains approval of loan
• pay the difference between loan amount and Purchase Price
• send undertaking letter from the bank to release loan amount to Developer
• then this SPA will not be terminated
• unless the bank fails to release the amount within 30 days from the expiry of
the notice]
Clause the adjustment of the property in the event that the area of the land is bigger or
14(1) smaller than the area stated in the SPA
If the area of the land is different from the measurement in the final IDT when issued,
then the purchase price will be adjusted RM60.00 per square foot. (max amount
claimed by D up to 2% of total area in final IDT)
Clause 20 • The developer will handle the maintenance of the property (collect rubbish, clean
drain, cut grass) from the time the purchaser takes vacant possession of the
property until the maintenance service is taken by the appropriate authority (as it
should be)
• Since developer is maintaining it, the purchaser must pay for the costs and
expense now and then
• The purchaser shall pay the contribution (fees for maintenance service) for the first
6 months in advance
• From the 7th months onwards, payable monthly in advance
• After such maintenance service is taken over by the appropriate authority, within
30 days, developer will refund you the amount of contribution you paid, after
deducting the amount due to the authority
*Clause 1 Interpretation - Appropriate Authority to provide water, electricity,

telecommunication, sewerage services and other related services;
Clause 24 • The vacant possession will be given to you (Purchaser) within 24 months from the
date of SPA
• If the developer doesn't give it within that 24 months, the Developer must pay to
the Purchaser sum of 10% per annum of the purchase price (calculated from day to
day) until the purchaser gets the property

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• Developer has to pay the liquidated damages to Purchaser immediately after D

gives P notice requesting P to take vacant possession
• If the developer doesn't pay immediately after the notice, the purchaser is entitled
to deduct such sum (liquidated damages) from any instalment of purchase price
• If the purchaser wants to take any action against developer, can only do so after
the purchaser takes possession of the property.
*vacant possession
- Clause 26
- D will let P into possession of the property after:
• - certificate of completion and compliance (CCC) is issued (to certify the
property has been properly construction according to the approved plan &
safe for inhabitation)
• - water and electricity supply have been connected
• - Purchasers have paid all the monies under 3rd Schedule
• - Delivery of vacant possession – CCC & handing over keys
Clause 27 Defect liability period

If there is any defect or damage (due to defective workmanship/material, or
building not constructed according to approved plans) within 24 months after the
purchaser takes possession of the land, the developer shall repair it at its own
costs, within 30 days of written notice from Purchaser.
• If D x make good/repair within 30 days, Purchaser can repair it himself & claim the
repair fee from the Developer
• Such cost can be deducted from the sum held by D’s solicitors as stakeholder
(under item 5 of 3rd Schedule)
• Provided that Purchaser has to notify D of the cost of repairing & give chance to D
to repair first
Schedule H
Wednesday, 6 May, 2020
9:43 PM
Schedule H
• Schedule H is a standard form of SPA which is under regulation
o To protect the buyer from the developer
o The developer needs to adopt the terms and conditions under Schedule H
o The developer needs to enter all necessary information under Schedule H
• Difference between Schedule G and H

o G applies when buyer buys landed property
o H applies when buyer buys high-rise unit from the developer
• High-rise unit is called parcel
o There are instances where buyer buy condo from the developer but no need to sign
Schedule H. Instead, he has to sign subsale agreement because at the time of signing,
the building is already completed.
• In this case, developer has the right to set the terms and condition under the
subsale agreement

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• Issue of integrity:
o If you act for developer, you cannot act for the purchaser as well
o s.84(1) LPA: requires solicitor to get certificate signed by the purchaser and it must be
attested in the presence of commissioner of oath
• So make it clear to the purchaser that you are acting for the developer and not the
purchaser
• Prepare a certificate and declaration that purchaser sign to ensure that the
purchaser is well aware that you are acting for the developer
• Sign before they sign the rest of the agreement
• Once signed, they have to get it attested by a commissioner of oath
• The copy must be given to the developer and purchaser
o Purchaser has the right to hire his new solicitor. In that case, --> see reg 11(4) HDR 1989
--> The developer cannot charge the purchaser for schedule H
o Usually, very unlikely that the P will engage his own solicitor to act for him because the
solicitor had attended to the pl in the signing of schedule H agreement and had given
stamped copies of the agreement to the P
• Preparing Schedule H agreement

o Even if the purchaser has his own lawyer, the developer usually will prepare schedule H
too
o Infor under Schedule H
On part of developer, fill:
• Name of the developer and its co reg no
• Developer's license no
• Developer's registered address
On part of purchaser, fill:

• Name of the P, ic no, and address
• Name and relevant particulars of the RP (registered proprietor of the master
title/individual title)
• Tenure of the land
• Expiry date of the leasehold land
• Particulars of the master title or separate title
▪ Usually under schedule H, only master title because schedule H involves
strata title which is the individual title, Strata title will only be issued during
later stage of construction since developer can issue strata title at that stage
• Area of the master title
• Name and registered office of the bridging financier (if the developer takes a loan
from the bank)
• Name of the housing project (usually developer will specify particular name of the
project like Selesa Homes etc)
• The advertising and sale permit no of developer
▪ Need because the purchaser has a right to know if the developer has a valid
advertising permit no. If it is expired, then the solicitor must get a new one
for the developer. If it is not valid, the purchaser can sue the developer.
• Exact unit number of the parcel
• Area of the parcel (for condo, it refers to how big is the condo like 1000sq ft)
• Description of the accessory parcel
▪ refer to the parking lot. Like in buying condo, should get one parking lot.
Must specify if get more etc

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o Other particulars need to fill (refer to the one uploaded in spectrum):

• Clause 3: the purchase price must write in number AND full sentences
• Clause 12(3): fill in the blank the compensation price per sq metre in the event that
built up area is less than the stated in the SPA
▪ Eg: in the SPA, purchaser is buying 1000 sq ft unit of condo. Upon delivery of
vacant posession, turns out only 800 sq ft. Purchaser is entitled to get a
variation of purchase price.
▪ For this compensation price, it must be mentioned in clause 12(3).
• Third schedule: must specify each progressive payment of the purchase price
(similar to Schedule G)
• Fifth schedule: form of service charge statement
▪ Different than Schedule G (takda benda ni)
▪ For H, it contains what are those items that the developer can charge the
purchaser (refer to maintenance fees etc)
• Salient provisions of schedule H (refer to slides uploaded)

o Next note
• Deed of Mutual Covenants

o Apart from preparing schedule H, must also prepare DMC
• Hence this differ from schedule G because under G, no need to prepare G
o Purchaser must sign DMC along with the schedule H
o What is DMC?
• A set of regulations governing the use of building and binds all the parcels owners
and the D. Once the purchaser buys, it will come together with other facilities.
DMC is to control the conduct of the purchaser (It has the Dos and Donts in
relation to the conduct in the common facilities and the duties of the developer in
maintaining it)
• Previously, developers have the right to set the terms in DMC. However, now
regulated under Schedule 3 of the Strata Management (Maintenance and
Management) Regulations 2015. So now, the developer follow this one under the
regulation
o Who has to sign DMC?
• The developer and the purchaser of a unit in the housing development
• If manager of the building already appointed, manager also need to sign
• When the purchaser get the key, he must make it known to the tenant about the
content of DMC (if he wishes to rent the unit)
• DMC binds all owners, tenants, and users of the building
o How long is the lifespan of DMC
• Only valid for a period not more than 12 months
▪ 12 months start upon the delivery of the vacant possession to the purchaser
• Within this 12 months, the developer must always see and maintain the common
facilities pending the handing over the management to the joint management
body (JMB which is formed within the 12 months).
▪ Once JMB has been appointed, the DMC will cease to apply. Developer then
have no responsibilities for the infrastructure and facilities
• The house rules set by the JMB will become the new rules
o JMB is like a normal contract
• Violation of the rules will cause the other party to be allowed to take actions
• Can get remedies like damages, injunction, declaration

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• After the purchaser has signed Schedule H and DMC, the lawyer for developer need to
o Prepare 4 copies of schedule H and 4 copies of DMC
o Once purchaser signed, forward the signed schedule H and DMC to developer
o Once developer sign, go get it stamped (stamp hasil) --> amount RM10
o Once it has been stamped,
• 1 original and duplicate give to Purchaser
▪ Why purchaser need to have original? So that it can apply for withdrawal
and forward it to the bank if he is getting a loan from the bank
• 1 copy for the developer
• 1 copy for the solicitor's file (your own file)
• Issuance of strata title
o Since Schedule H is respecting high rise building, it is the responsibility of the developer
to ensure that the strata title is applied to the land office so that every owner of the
parcel can obtain the strata title (strata title is important especially for purchaser who
wants to obtain loan because this will be the final instrument charged by the bank for
the loan)
• STA 1985: upon completion of the building, Developer has to apply for strata titles
within 6 months of Cert of Completion and Compliance of the building being
issued
• Once it has been issued, the developer will ask his solicitor to inform the
purchaser that strata title has been issued and then the purchaser has to sign the
MOT (to transfer the individual title/strata title to purchaser)
o At this juncture, a legal fee will have to be paid by the purchaser.
• At this stage also, the purchaser has the right to appoint his own solicitor and
reject you (developer's solicitor)
o Acting for purchaser when strata title is issued
• Get purchaser's IC
• Prepare MOT to transfer the strata title into the name of the purchaser
• Then execute, adjudicate, register the MOT, title and charge (if the purchaser has
existing loan) at the land office
• The duly registered title and charge will be kept by the purchaser's financier/bank.
If purchaser is a cash buyer, send to purchaser straight away so that he can keep
them
Schedule H - salient provisions

Wednesday, 6 May, 2020
11:36 PM
Schedule H - salient provisions

• Front page
o Looks like Schedule G
• On the date of execution, must prepare the Schedule H, DMC, cert/declaration that you are
acting for the developer
o Sign the cert first before the rest of the doc
• Page 2
o Purchase price must be written in numbers and full sentence
o The amount that he has to pay
• Before ask them to sign, highlight to them the important clauses in respect of the rights of the
purchasers

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o One of the important clauses to highlight

• Schedule of payment
▪ Not in lump sum because the property is still under construction
▪ Pay based on third schedule
▪ If buy in Schedule G, need not be in lump sum but based on progression of
the building of the house.
• Ask also whether buy with cash or loan

▪ If need help, ask the developer because D can help you find a loan
▪ Ask also is it govt loan or normal loan
• Govt loan is different because has more syarat and the developer
needs to prepare documentation and submit to the purchaser to
support the application for the govt loan.
• Interest on late payment

▪ Once the status of the progressive work has been completed, the developer
will remind to produce a certificate and the developer will remind the
payment from the purchaser or the financier.
• If the purchaser tak apply for loan yet, then on his name je
• The purchaser has to ensure that the bank also made payment, if
made by the financier within the time frame. If not, developer will
have the right to enforce late payment to the purchaser
▪ The interest must be settled within 21 working days
▪ If late payment, the interest counted on a daily basis at the rate of 10% per
annum
• If before everything settles, the purchaser bankrupt etc, then developer has the
right terminate the SPA and sell the house to someone else
• High-rise building is always built upon a master title. So, a developer must always
apply for strata title (title asing) for the purchaser --> Clause 11
▪ After strata title has been issued only that MOT can be signed
• Even if the strata title is pending, the purchaser can still assign or sell the unit to
subsequent purchaser but must get consent from the developer --> consent to
assignment on page 9 clause 12
▪ In such case, the developer cannot withhold consent to any assignment etc
to a 3rd party pending the issuance of strata title
▪ Developer MUST consent to the subsale transaction despite the separate
title has yet to be issued.
▪ Purchaser must pay RM500 to the developer for the developer to endorse
the assignment
• Clause 13: adjustment of the purchase price

▪ This takes place when the measurement of the real property differs from
the one mentioned in the SPA
▪ Adjustment rate is up to the purchaser
• Clause 17: infrastructiure and maintenance

▪ Include drains, sewage system etc

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▪ Responsibility of the developer to maintain and build the infrastructure for

the enjoyment of the owner
▪ The purchaser has to pay upon the possession of the unit
• Clause 18: duty to construct common facilities

▪ Public drains, cutting grasses, clean swimming pool etc
▪ Maintenance fees include this
▪ All costs and expenses covered by the vendor until such date when the
purchaser takes vacant possession of the said parcel
• Clause 19: The purchaser has a duty to pay the service charges for maintaining the
common property
▪ Pay directly to the developer prior to the establishment of JMB
• Clause 20: sinking fund

▪ Sinking fund is an amount where the purchaser has to pay for the purpose of
painting and repairing the common facilities, acquisition of any moveable
property, or the renewal or replacement of any fixture or fitting comprised
in the common property
▪ How much has to pay?
• Clause 20(2): 10% of the service charge
• Clause 21: Insurance

▪ In the event that any fire etc happens to your unit, then he has to pay the
insurance to the developer --> to ensure that the purchaser's unit is
protected from any disaster
• Clause 22: payment outgoing

▪ Payment outgoings: pay directly to the developer
▪ Pay when you get your key to your unit from the developer
▪ Prior to the taking of possession, the developer is the one responsible
• Clause 23: water, electricity, gas piping, telephone trunking

▪ Developer will demand the payment because it has to pay the deposit first
▪ Developer will pay first and then ask the purchaser to pay for it. Purchaser
has to pay within 14 days after the receipt of a notice requiring such
payment
• Clause 26: time for delivery of vacant possession

▪ For schedule G, within 2 years from the date of the SPA the developer must
deliver the vacant possession
▪ For schedule H, the timeline to complete the building is 3 years from the
date of the SPA/Schedule H
• Eg: 26/4/2020 -- > 26/4/2023
• Clause 30: defect liability period

▪ Any defect to the property, must get it claimed within 18 months from the
date the taking of vacant possession
▪ If schedule G, it is 24 months from the date of the taking of vacant
possession.

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Subsale Agreement
Saturday, 23 May, 2020
5:40 PM
Subsale Agreement
• On-statutory purchase because not covered under the Act
• Subsequent sale of the property by the vendor who originally purchased the property ffrom
housing D
o Abu bought the house from a developer. Then he wants to sell it to another person
o This is called as a subsale
• All purchasers other than from developers are called subsales
• However, there are instances where p buy from developer, it can be subsale
o This is applicable when the purchaser buy a property that the certificate of fitness (CCC -
-> completion and certificate of fitness by authorities).
o If you buy a commercial property from a developer (like shop lot)
• Sebab tak govern under HDA
• The terms of subsale not governed under HDA, but governed under Contracts Act
o Hence, the parties have the freedom to negotiate the terms of the subsale based on
willing seller willing buyer basis
• In practise, subsale agreement is also known as the 3 +1 agreement
o 3 months for the purchase price to be paid, Failing which 1 month will be given extra
where interest will be payable
Different stages of subsale agreement

1. Preparation for interview with client
• Get IC, previous SPA (to know the date of acquiring the property --> to know the tax)
• Review the documents
2. Drafting the SPA

• Before drafting, must conduct the land search, co, search, bankruptcy search etc
• Be careful if it involves redemption sum. If got, settle loan first
• Once draft, send to the opposite counsel
• Usually in practise, the party who has the better knowledge of the property will prepare the
draft (the vendor)
3. Signing of the SPA

• Documents to prepare for signing
o SPA (3 copies; 1 copy for purchaser, 1 for vendor, 1 copy for your file);
o MOT (Form 14A)/transfer form (2 copies; 1 je perlu but the other one as back-up) -->
printed in A3 form size
• If no title, use DOA (3 copies as well)
o Private caveat form and SD
• Refer to NLC (same with Form 14A)
• Usually land office, need to prepare in Malay version
o Form PDS 15 Stamping Proforma
• Required for adjudication of transfer form later on
o CKHT form
• If acting for purchaser, need to prepare Form 2A
• If acting for developer, need to prepare Form 1

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• If vendor wants to apply for exemption of RPGT tax, need to prepare Form 3 as
well.
• CKHT form is for the purpose of RPGT tax
o If property has restriction in interest where state authority's consent is needed, the
consent forms must also be provided
o Invoice for legal fees
• Must be prepared before client sign the agreement
• So that the client can pay during the signing
• Before making appointment with client to sign, check thoroughly all the docs (especially the
name, address etc). If there is any missing facts or legal issues, must highlight to client before
proceeds to signing
• Before the P turns up at office to sign the doc, advice him to bring along with him when he
comes to execute the docs:
o His ic (required for registration of the transfer at the land office);
o If the P is not a natural person, to obtain corporate docs such as resolutions and M&A;
o His payment for the first 10% of the purchase price (PP) to pay the vendor and the
solicitor's fees; and
o Payment for legal fees and disbursements.
4. After signing/during compeletion period

• If acting for purchaser, forward to vendor's solicitors
o SPA
o Deposit sum (10%)
o MOT (if no title, forward DOA/assignment)
o Stamping proforma
o Information requested by vendor's solicitors
• Forward to vendor's solicitor so that he can arrange with the signing by vendor.
• Once signed by vendor, the docs will be returned to the purchaser's solicitor
• The documents that you have to forward to vendor's solicitor does not involve private caveat
because it only relates to the people who has interest in the land. The developer dah ada
proprietory right. SO no need
o The private caveat should be lodged as soon as practicable once the SPA has been
signed. However, this is only applicable if SPA not subjected to CP
o If SPA subjected to CP, the CP must be obtained first before private caveat can be
lodged. This is because conditional CP gives rise to caveatable interest once it has
become unconditional interest.
• For the MOT, it should only be submitted for adjudication, if there is no CP and differential
sum dah bayar, then can submit for adjudication (submitted via online to stamping office to
know the amount of stamp duty purchaser has to pay)
o If the MOT is subjected to CP, can only go for adjudication after CP settled
o What if you have submitted for adjudication but CP not done yet?
• Very risky because once adjudicated, you have 1 month to pay the stamp duty.
Bayar lambat = kena penalty.
• If acting for vendor,

o Return docs to p's solicitors and deal with deposit sum in the manner provided in the
SPA
• During conditional period (if any) (the SPA cannot be carried out until the condition
precedents are fulfilled by the parties. So conditional period refers to the time when CP has
yet to be fulfilled),

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o Take steps to fulfil the CP

o Once CP has been settled, the 3 months period starts from here
• During completion period (the 3 months), if you are acting for Purchaser,
o Lodge a private caveat
o Submit MOT or assignment for adjudication of stamp duty payable (except that the
assignment for adjudication upon obtaining the endorsement of a developer to the
assignment)
o Request vendor's solicitor to obtain redempytion statement (if any) addressed to
purchaser, or where P is applying loan, the purchaser's financier
• Redemption statement is only applicable if the vendor has a loan with the bridging
financier
o Lodge CKHT form within 60 days of the SPA date (if got CP, then 60 days upon
conditional date)
• What do you do with the payment of the deposit (or balance of deposit)
o Depends on the terms of SPA
• If subject to CP, payment of deposit should only be released to vendor upon
fulfilment of the CP. After CP has settled, then only vendor can get the deposit.
Hence, solicitor cannot release before CP is settled (why? Because it is dangerous
if the vendor tak dapat, he can run away with the money)
▪ If vendor fails to do CP, then breach --> purchaser can terminate agreement
5. Redemption (if the vendor still has existing loan with the financier)
• How is the manner to settle the redemption sum?
o If the purchaser tak apply loan, then the redemption sum is paid from the balance
purchase price.
• Redemption sum paid by the vendor himself. This is done by vendor solicitor on
vendor's solicitor and pay straight to vendor's financier. Once paid, then only the
financier will release title to give to purchaser's solicitor to register change of
name in land officer
o If the purchaser applies loan, then redemption sum will be paid off from the loan
amount
• The purchaser's solicitor will have to write in to the vendor's financier to obtain
redemption statement
• The financier will then issue redemption statement to purchaser's financier and
solicitor so that the financier can remit from the loan sum to settle the
redemption sum
• However, if the redemption sum is more than loan sum, then the balance must be
paid by the vendor.
o Once the vendor pays the difference between the balance purchase price and the loan
sum, then the purchaser's financier will release the loan sum to the vendor's financier
• A common problem during the redemption stage is that of late delivery of the redemption
docs (eg title/assignment) by the vendor's financier chargee after receipt of the redemption
sum.
o The solicitor needs to play a role and make sure vendor's financier does not delay it. Put
it in SPA so that purchaser's right is protected
• In the case of property without individual title,
o deeds of receipt and reassignment (DRR) must be endorsed and executed by the
developer (if developer is not the vendor)
o At the same time, must bring the DRR to the HC for revocation of POA given to the
financier assignee

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o Basically the same with discharge of charge.

• To meet the completion date, the purchaser's financier may have to rely on undertakings (eg
by the vendor on refund of the purchaser's loan and by the present financier assignee on
delibery of the DRR) for it to release the balance loan after redepmption.
6. Presentation/endorsement of consent by developer to the assignment

• Present at land registry
o If got title, MOT
o If no title, the assignment towards beneficial ownership.
• Presentation should be made only after
o All payments (eg differential sum, redemption sum) have been made by the relevant
parties (purchaser pun dah kena bayar stamp duty and registration fees);
o A thorough research has been made at the land office;
o All the NLC forms have been complied with
• No presentation is required in the case of a property to which individual title is yet to be
issued.
o The practice is to treat the assignment (if it has been duly stamped for the amount of
the duly adjudicated stamp duty) as evidence of beneficial ownership which entitles the
beneficial owner to the transfer of the individual title to his name upon its issuance.
o The assignment (as a transfer) attracts stamp duty under Stamp Act. It should be dated
only after or simultaneously with the dating of the DRR.
• For the assignment, it should only be dated same or after date of receipt of receipt and
reassignment.
o Why? Because by right, the financier must release to vendor first baru vendor can give
DOA to the purchaser.
7. Completion
• No requirement to meet f2f.
• Payment of BPP.
o If P is applying for a loan, payment of the differential sum by P and release of the loan
sum by F.
• The practice usually is that the P will initiate completion by the delivery of the necessary
cheque for the BPP to the V's sols on the terms of their stakeholding which are to deal with
the BPP in accordance with the terms of the SPA and to forward the original issue document of
title in exchange for payment.
o Delivery of vacant possession should be made simultaneously with or as soon as
practicable with the payment of the BPP to the V.
o The P should have another inspection of the property prior to release of the BPP to the
V's sols. This is especially so where the SPA includes fixture and fittings.
8. Events after completion

• Both vendor and purchaser must give notice to local authority on the change of ownership
o Cth: cukai pintu --> notify city council by filling in the form to change the ownership of
the property. Must also furnish the stamped SPA to let the make the necessary change
of name and invoice of the assessment on the property
o Failure to do so is an offence
o All retention sums or the balance after pyment should be released only after receipt of
documentary evidence of payment
• Collection of original IDT from the land registry

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o To collect the original issue document of title duly registered from Land Registry.
Endorsements/memorials on the title are verified. This task will be carried out by the P's
F if the P has obtained a loan.
• Adjudication and stamping of assignment
o Depends whether got title or not
Main terms of subsale agreement

• Date
o Date after both purchaser and vendor have signed the agreement
o After signing, get it stamped with RM10 setem hasil
• Details
o Describe the vendors and the purchaser with IC and address of the parties
o Bear in mind parties tak semestinya individual but can also be companies
o But cannot be a minor because a minor is unable to hold a land in his own name but he
may be a beneficiary to a trust where the trustee holds in his behalf.
o Trust can be registered at land office
• "Whereas…" --> recital of agreement
o Describe the background of properties
• Can be registered title or property where individual title has yet to be issued
o Describe whether the title is subjected to RII or land use etc
• For example: land cannot be charged without consent of state authority
• It is important to highlight because if it is present, it shows that CP is applicable
• The 3 months can be calculated starting from the completion of CP only.
• During the conditional period --> time for vendor to get consent from state
authority --> once get consent only that 3 months start
o The property is charged to RHB Bank: this shows that there is an existing loan with
vendor financier --> redemption sum is present and hence must be settled so that the
present chargee will release the charge to the purchaser
o Don't make mistake because if got, then purchaser can rescind the contract
• Definition and interpretation clause
o Set out the meaning of each clauses and the terms as to how it should be construed
o Usually concerns gender pronouns, singular and plural
o Can also be specific --> refer to specific stuff
• Clause 2: Agreement
o To confirm the intention of parties
• Clause 3: CP
o If CP is not fulfilled, the agreement is unenforceable
o If the vendor fails to get approval of state authority etc, the agreements shall become
null and void
o Under 3.4, it explains what happen
• Clause 4: covenants for fulfilment of CP
o Describe which party has the obligation to fulfil CP
o 14 days: conditional period
o Once the CP is fulfilled, the completion period of 3 months will start running --> the term
is called unconditional period
• Clause 5: Purchase price and terms of payment
o Payment in the form of
• Deposit
• Balance of deposit
• Balance purchase price

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o If the property has been charged by the vendor before, then part of the loan sum of the
purchaser will be used to redeem the property from the vendor financier. If the
redemption sum is more than the loan sum, the full loan sum with differential sum will
be used to redeem the property from the vendor financier
• Hence, first need to get the amount from vendor financier
• If less than loan amount of purchaser, loan can be used to pay the redemption
sum
• If more, the vendor has to pay
o If the purchaser obtains loan, financier will release loan to developer only after
differential sum is settled (the difference between the amount of loan and the purchase
price
o 5.2(a) deposit sum
• 5.2(a)(i) purchaser has to pay 2% to LHDN as part of the RPGT
▪ Why? Because at this time, the house was sold within 5 years. Hence, the
property is subjected to 2% RPGT tax
• 5.2(a)(ii) the balance of deposit sum baru bagi kat developer
o Within 3 months from the completion period, then the purchaser have to settle all the
purchase price
• Deposit pay immediately after getting state authority consent
• The rest can be done within 3 months
o If subject not subjected to CP, deposit sum paid upon signing the agreement
• Clause 6: execution of transfer
o Transfer here refers to MOT/Form 14A
o Transfer form signed with the SPA
o When do we need to adjudicate (send to LHDN to know the stamp duty) the transfer?
• Upon the settlement of differential sum
• If the vendor still got loan, then adjudication is conducted after redemption sum
has been paid
o Who bear the stamp duty for transfer?
• It involves ad valorem stamp duty and counted based on purchase price or market
price of property (whichever is higher)
• Clause 7: Completion period
o If the agreement not subjected to CP, the completion period begins 3 months after date
of signing
• Obligation of purchaser and vendor discharged upon the full balance purchase
price received by vendor
• Purchaser then will be the registered proprietor of the property and will get
delivery of vacant possession of the house
o However, if there is CP, the completion will be calculated only from the date of
fulfillment of CP, not the date of the signing of CP
• The 3 months start from the date the vendor obtains state authority's consent
o Ideally completion date should be a working order
• If you determine it will fall on Sunday or public holiday, it will be tedious for
solicitor just to hand over the key during that day
o What if the purchaser couldn't settle the balance of purchase period within 3 months?
• There will be an automatic extension of time
• This is granted automatically according to SPA
• This period comes with interest (usually 8%)
o 7.2: describe vendor's obligation to hand over to purchaser's solicitor certain docs stated
here for the purpose of registration and change of name.

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• The vendor will only forward the doc after redemption sum is settled (because it is
only after that the vendor will get the valid and registrable discharge of charge,
original IDT and the other doc listed in 7.2)
• Payment that comes from purchaser would be on transfer form and/or private
caveat (if any)
• All the doc will be compiled with duly paid and adjudicated transfer form and will
be presented together at the land office for the purpose of registration of change
of name from vendor to purchaser
o 7.4: Once all doc has been registered and presented at land office, within 14 days, the
purchaser solicitor has to give the copy of the balance slip to purchaser's financier to
release the balance of payment of purchase price to vendor (or vendor solicitor if he is
the stakeholder)
o At the same time, if there is any outstanding bill, the vendor has to settle and then baru
give the vacant possession and the key to purchaser (This will mark the end of the
subsale agreement)
• Clause 8: forfeiture
o Situation of non-completion of subsale agreement
o Non-completion can be caused by default of either party
• Usually involves non-payment of the balance of purchase price. In this case,
usually there will be forfeiture of deposit sum by the vendor. Any other money
give back to purchaser free of interest
• The purchaser also has to return and deliver back the vacant possession
o 8.2: if vendor yang salah
• The purchaser can proceed with specific performance at court
• Or purchaser can ask for termination by notice in writing to the vendor
• The vendor then has to refund all money free of interest to purchaser
• Clause 9: Outgoings
o Quit rent, assessment, indah water and other outgoings will be apportioned when the
purchaser gets a vacant possession
o GR:
• Before delivery of vacant possession: vendor pays
• After delivery of vacant possession: purchaser pays
• If vendor pays extra, the purchaser has to reimburse the amount to vendor
• Clause 10: representations, warranties, undertakings of vendor and purchaser
o Concerns express representations etc by both parties
• Clause 11: real property gain tax (RPGT)
o A clause whether RPGT is applicable or not must be inserted here
o 11.2: purchaser solicitor must retain 2% of the purchase price if the disposition of the
property is less than 5 years after vendor has acquired it. The 2% comes from the 10%
deposit sum. The balance 8% will be given to vendor.
o Parties also have to file in relevant forms to the Director of Inland General Revenue
within 60 days from SPA date (if CP is present, 60 days calculated upon the completion
of CP)
• Vendor fill:
▪ Fill in CKHT Form 1
▪ If asking for exemption of tax, fill form 3
• Purchaser fills:
▪ Form 2A
• Clause 12: land acquisition
o To cater situation where notice of acquisition is served before completion of agreement
• In that case, purchaser

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▪ Can terminate; or
• If go this way, the purchase money that has been paid will be
refunded by the vendor to the purchaser and in exchange of re-
delivery of doc by vendor
• The vendor then will be entitled to the compensation money by
agreement
▪ Proceed with the agreement
• The purchaser will be the one entitled to the compensation by govt
• Clause 13: private caveat
o To protect purchaser interest and prevent vendor from dealing with the property
o Private caveat can only be entered when the individual title has been issued
o Lodge upon SPA and deposit (if not subjected to CP)
o If subject to CP, the purchaser can only lodge private caveat upon fulfilment of CP
because purchaser's interest only arises upon the fulfilment
o If private caveat cannot be withdrawn, the instrument later cannot be registered.
• This why Form 19G (refer to loan doc - H) is important
• Clause 14: delivery of vacant possession
o Refers to the valid handing over of the ownership free from encumbrances etc from
vendor to purchaser
o Usually done by passing of keys from vendor to purchaser (can be f2f or through
solicitors)
o Issue: when and how can the delivery be affected?
• Usually given within reasonable period after payment of balance of purchase price
to the vendor. After cheque is cleared and final account is prepared
• Usually within 5 working days upon receiving payment of balance of purchase
price including payment of outgoing
o Inspection of property
• Done prior balance of purchase price is made
• Advisable for purchaser to inspect the property before the completion period of
agreement
o If vendor fails to deliver vacant possession, the purchaser is entitled for specific
performance and damages
• Clause 15: non-registration of transfer
o In the event transfer form cannot be registered, how the agreement should be
determined?
• The situation provided in 15.1
o Usually this provision drafted generally because even if cannot register, usually can fix
• During this time, the vendor will become a bare trustee for the purchaser
o If transfer really cannot be fixed and registered, parties can terminate agreement within
14 days from such date
• Clause 17: costs and fees
o Bulk of fees and cost will be paid by the purchaser.
o But if subsale involves fulfilment of CP, then it depends on which party has the
obligation to fulfil CP.
• Eg: if vendor has the obligation to get consent, the cost will be borne by vendor
o Solicitors fees will be paid by each party according to whose solicitor it is
• Clause 19: Notices
o Mode of communication usually take place within 3 days and must be in the form of
letter by prepaid registered post or 5 days if ordinary posts
• Clause 21: successors in title

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o If either party dies, then the heir/personal representative can take the responsibility to
carry out the agreement and the responsibilities provided here
Intro to loan documents

Friday, 5 June, 2020
12:54 PM
Intro to loan documentation

• If a purchaser buys without loan, then the person is called cash buyer and the solicitor only
need to prepare SPA
• Loan documentation only applicable when the purchaser applies for a loan
• The solicitor who prepares loan documentation is acting for the bank (the end financier)
o Although the one paying the legal fees is the borrower or the purchaser
• Solicitor's job is to prepare the loan documents.
• Usually for housing loans, the bank will have the standard loan documents
o So no need to prepare from scratch
o The only part you need to fill in is the schedule part
• Even the loan documentation is standard, we still have to familiarise ourselves with the terms
of the loan agreement
o SO that we know the basics of it
• Two types of loan documentation

o Loan agreement/facility agreement
• Spells out the terms and conditions of the loan
o Security document
• Expressly states the property to be charges/assigned to the bank (financier) as
security
▪ Charge form/form 16A is needed when the title has been issued
▪ If no title, then it will be in the form of Deed of assignment or deed of
agreement cum assignment
• The loan agreement is more on the terms and conditions with regard to the loan
• Security is basically the bank requires the borrower to give something in return for the loan
being granted
o Why need security? To ensure that in the event the borrower defaults, the bank has
some kind of property where they can recover the loan (usually bank akan jual etc)
o Usually the house itself (the one purchased) or any other immovable property will be
the security
o Sometimes the bank will require other security like the guarantee by a 3rd party etc
o If the borrower is a co, it will require further types of security like the pledging of
shares/charge over movable assets of a company.
• Types of security documents

o Charge document
• Will only be required to be signed by the borrower if the property has title
• The one that has to sign is the land owner/registered proprietor (chargor)
• The bank is the chargee ( because the bank is the one who received the benefit of
the charge)
• Usually, the loan documentation has to be signed by the borrower, not the land
owner

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▪ When the chargor is also the borrower --> the 1st party charge
▪ When the chargor is not the borrower --> 3rd party charge
• Consists of 2 parts
▪ Form 16A (front part) signed by the owner and the bank (financier)
▪ Charge annexure
• Not NLC form
• Comes from the bank
• Signed by the borrower and the bank
• Hence, when you call the borrower, you must first see whether 1st
party charge or 3rd party charge.
• If the 3rd party charge, the land owner must also come for the
loan documentation because land owner needs to sign it
▪ Must be registered with the relevant land office
o If the land has no title, the must have loan agreement, deeds of assignment and power
of attorney
• Loan agreement - signed by the Borrower and the financier
• DOA - signed by the owner and the financier
• Power of attorney - signed by the financier --> to be registered with the HC
▪ Give power to the bank to sell the property in the event that the borrower
defaults payment
o Loan agreement cum assignment (LACA)

• Sometimes the loan agreement is combined with the DOA into one doc
• Stamp duty ad valorem has to be paid on the loan agreement and rm10 stamp duty
will be paid on the clause operating as the assignment
• The power of attorney is still prepared as a doc separate from the LACA --> to save
cost in the registration fee at HC (because court charge according to number of
pages)
o LACA for property pending IDT

• Sometimes when the property is bought under schedule G, and the title is not yet
issued.
• In this situation, LACA can act as temporary security doc
• When the title is later issued, the solicitor will prepare a charge over the property in
favour of the bank.
• The stamp duty for the charge will be nominal RM10.
• Stamping of loan document

o Go to the stamp office and have it stamped
o By virtue of s.4(3) of Stamp Act, only one instrument needs to be stamped with duty ad
valorem
• Ad valorem: the amount of stamp duty will be calculated the amount of loan
amount
▪ Usually the LA or FA is the principal document for payment of stamp duty ad
valorem
• Unlike SPA (nominal RM10), the stamp duty for LA/FA will be based on the loan
amount
• For charge document/DOA --> stamp is subsidiary --> nominal stamp duty of RM10
each
▪ HENCE,

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• CHARGE DOC/DOA/SPA: NOMINAL SUM OF RM10 FOR STAMP DUTY

• FA/LA: NEED TO GO FOR ADJUDICATION. THROUGH THE
ADJUDICATION PROCESS, THE AMOUNT OF STAMP DUTY IS BASED
ON THE LOAN AMOUNT
• Letter of undertaking and confirmation

o Required by the bank as a part of their SOP before they can draw down the loan amount
o The parties involved:
• Developer as the vendor
▪ Once loan has been approved, usually the bank will require the developer to
confirm whether the differential sum has been settled
▪ Once confirmed, the developer needs to issue a letter saying whether the
sum has been settled or not
▪ Differential sum is the difference between loan amount and the purchase
price. Like 90% loan so the differential sum 10% will be paid by the
purchaser himself.
• So long as the purchaser has not paid the 10%, the bank cannot
release the loan amount. Once paid, the bank can give
▪ The developer also need to undertake to deliver the clean title and refund
the bank if the title is not clean
• This is why the developer needs to issue the letter of undertaking
• Purchaser's solicitor
▪ This is in the event the purchaser's solicitor and the end financier's solicitor
not the same person
▪ He needs to issue a letter of undertaking to the bank to forward a
registrable MOT for the property to the end financier's sol for the purpose of
registering the transfer together with the charge
• Why? Because the purchaser's solicitor is usually the one holding the
MOT
▪ Since the end-financier's sol preparing the doc and registering it, must give it
to them lah
• End-financier's solicitor
▪ To request confirmation of differential sum settled
▪ To arrange for settlement of redemption sum (in the event that there is an
existing loan
• If the developer has an existing loan, then the financier needs to settle
for an arrangement of redemption sum to bridging financier because
part of the loan will be given to pay the redemption sum. The rest
baru bagi developer.
• The bank usually will write and request for the redemption sum
▪ Once the developer obtains the redemption sum, he is no longer entitled to
the said property being sold to the purchaser --> must be written in
redemption statement.
▪ The redemption statement must also incorporate an undertaking from the
BF that upon receiving the redemption sum, they will disclaim any interest
over the said unit and exempt it from any foreclosure against the vendor
• Who will pay the redemption sum?

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• The end-financier will use the amount of loan that is supposed

to be used for vendor to settle the redemption sum. Once the
redemption sum dah habis, baru the vendor will get its money.
• If the amount of redemption sum is more than the amount of
loan given by the end-financier, the balance will be borne by
the vendor itself.
Understanding the Letter of offer

• Before prepare letter of presentation, must know letter of offer
o All information for CA etc will need to gather from letter of offer
• For islamic type, we call it islamic financing, not loan
• In the example:
o The name of customer is the name of the borrower
o The bank will usually offer 90% of the purchase price while the balance of 10% will be
borne by the purchaser himself and he needs to settle it himself with the developer
o Liability reducing term takaful contribution -->

• when the bank offer a loan amount, it will come together with the
insurance/takaful.
• This takaful the bank offers to the borrower to cover in the event that the borrower
dies before he completes the repayment of the debt in full/or when he suddenly
becomes incapable to pay due to permanent disability etc
• Takaful usually offered for older borrowers. For younger borrowers, you can ask to
waive it
• Why waive? Because it will increase the monthly instalment that you have to pay
• Subject to the bank's approval
o Ijarah rate: prescribed rate of interest (for conventional loan) otherwise known as profit
rate
• The prescribed rate depends on the base landing rate
• Like for example if the base landing rate is 5%, then it is 5% - 2.45% (the one in the
letter of offer) = 4.05%
▪ But don't say the 4.05% because it is uncertain depending on the BLR (base
landing rate)
• The changes only occur for conventional loan
• But for islamic loan, no change. The rate will be the same throughout everything
despite economic changes etc
o Ijarah period
• Usually will mention how long
• For young borrowers, usually give 35 years
• The tenure depends on the period of the loan (by when the repayment of the loan
must be paid)
o Ceiling rate
• Refers to the max interest rate that can be charged.
• p.a stands for per annum
• If during economic recession, the interest rate can go up to 14%. But in islamic
banking, the interest rate won't go above the prescribed ceiling rate.

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o Tenor
• For how long the agreement last
o Security
• This part is important and must tally with the SPA
• Usually bank will require security in the form of immovable property.
• There are instances where the bank requires a guarantee too (usually happen when
the borrower is a company)
• The security is in the event that the borrower tak bayar, the bank will foreclose the
property to settle the loan
• When the borrower and the owner of the house are the same person, this is called
as 1st party loan
▪ If 3rd party house finance, the borrower and the registered properietor not
the same person
▪ For example, owner of house to A and B. But yang borrow the loan is only A.
The house is being charged, then it is called as 3rd party loan
o Log in period
• The time where you cannot settle your debt before this time
▪ Cth: the period is 3 years. So within 3 years, you cannot settle the debt and
sell the property.
• But can ask the bank to waive it. Subject to the bank's approval
• Usually bank will impose interest if you want to settle it before the log in period
ends
o Draw down means the release of the loan
o Condition precedent
• Just like in the SPA, the loan agreement and letter offer pun ada Bank set kan
• This means the documentations that need to be prepared by the solicitor before the
borrower can sign
o Events of default
• Stipulates the events which trigger the bank's right to exercise the demand for full
payment of debt
o Default interest rate

• In the event of default by borrower, the prescribed default interest rate will be
applied after that
• This is applied on top of the BLR
• Hence, it is higher. Kira lambat bayar, lagi banyak interest kena bayar
Loan Documentation - G
Friday, 5 June, 2020
11:09 PM
Procedure for preparing Housing loan documentation - Schedule G

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1. Begin when the bank forward a letter of instruction to the solicitor

o Confirmation letter to authorise solicitor to prepare security documentation for the
loan offered to the borrower
o Solicitor act for the bank although the borrower pays for you
• But there are instances where the loan amount covers the legal fees. Depends
on the agreement between the borrower and the bank.
• If borrower tak nak bayar, they can include in the loan amount
o Security documents refer to instruments which give the bank a hold on the property
secured to them (cth: charge or deed of assignment)
o What to do as solicitor/what security documentations to prepare:
• See whether the property has title
▪ If title, prepare Form 16A and charge annexure
▪ If no title, prepare DOA and the POA
o Once solicitor accepts the Letter of instruction, it will be enclosed with a copy letter of
offer and the SPA
2. Make land search, bankruptcy search for borrower, developer and bank
o Why need land search even if got a copy of title already?
• To confirm that all information in the title is correct/tally
• What do you need to identify?
▪ Who is the registered proprietor
• Sometimes RP and developer may be different person
• Like in our case pun mcm ni.
• The RP will have the right to transfer the title, not the developer
▪ Whether there is any charge against the property in favour of the bridging
financier
• If the developer is taking a loan from the bridging financier, we must
do discharge of charge from the bridging financier so that it can
release the title to the end financier.
• Once the bridging financier dah release baru boleh charge the land
to the end financier.
• If there is no existing chargee, no hal and the end financier can
charge terus
▪ See if there is any restriction in interest endorsed in the title
• If there is restriction to the charge, then must get a blanket consent
from the state authority
• Blanket consent allows transfer of land
• Biasa developer dah buatkan, if not kita kena buat
• Why do you need a bankruptcy search/winding up search?
▪ To see if the borrower or developer is a bankrupt or a co wound up
▪ If they are a bankrupt/wound up, they cannot apply for a loan
▪ Hence, that's why need to check and tell the bank
3. Write to the developer

o Inform that the housing loan has been approved to the purchaser.
o Request from the developer that the bank's interest is protected all the time
o Find out whether the property is currently charged to bridging financier. If yes, must
get the redemption statement. Usually developer suruh cek dengan bridging snediri
o If got charge by bridging financier, then the developer will pay the redemption sum.
Once settled, the bridging financier will release the title and the discharge of charge to
you (end financier)

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• But can be paid from the amount of loan gotten by the purchaser. So meaning
end-financier akan bayarkan and then lebihan loan after bayar redemption sum
baru amount tu bagi kat developer.
o Hence, then it is safe to charge the property in favour of the end financier
o Payment of charge etc will be paid by the developer
4. Charge by bridging financier

o Where the title is charged to a bridging F, the D would pay the redemption sum and
obtain from the bridging F the IDT together with the discharge of charge (DOC).
o The RM10 stamp duty on the DOC has to be borne by the D.
o The title, the DOC together with the registration fee will be delivered to the end-F's
sol for the purpose of registering the transfer and charge.
o If the D does not redeem the title from the bridging F, then the end-F's sol has to
lodge a private caveat to drawdown on the redemption sum and obtain the title and
DOC from the bridging F - the cost of discharging the charge will be borne by the D.
• This is the common situation and in this situation that the end-financier will pay
the redemption sum.
• But tak selalu berlaku sebab kalau dia kena bayar and dia mampu bayar, why
would the vendor needs to charge it in the first place.
• Hence, this is why the end-financier will pay using the loan amount for the
redemption sum. If ada lebih, baru vendor dapat duit purchase price. Kalau tak
cukup, then vendor kena bayar sendiri lebih tu and habis kira tak dapat lah the
purchase price.
5. Write to Purchaser's solicitor

o Because usually developer will liaise with purchaser solicitor by delivering the title
o Write to inform that the purchaser has obtained the loan
o Request a letter of undertaking to deliver the MOT, the current quit rent receipt and
the registration fees for the transfer
o Jobscope of purchaser's solicitor on the transfer. Hence, must liaise
6. Prepare the loan document

o It is a standard document prepared by the bank.
o So, can just access it
o This document is made standard so that it will be easier for the bank to check the
relevant particukars
o If property has title, must prepare:
• Facility agreement/loan agreement
• Form 16A (charge form) signed between chargor and chargee --> land owner
and the bank
• Charge annexure --> comes from the bank. Not a NLC form
o For property without title, need to prepare:
• Loan agreement
• Doa (to give power to the bank to sell the property in the event of default of
repayment by purchaser)
• POA --> register at HC
• No need to register at land office
o No need to change content because it is standardised.
o Only need to fill in the information in the schedule
• Date of the loan agreement (fill after both parties sign)
• Name, ic and address of the borrower

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• Partciulars of the property

▪ Must tally, if not kena reject
7. Prepare the charge form (Form 16A)

o How to fill in?
• Any division must be drawn at left margin of each page and the solicitor needs
to put initial of the solicitor. No need to put the round cop
• Previously it was done by simply using the initial of solicitor at every deletion of
the word
• Initials on the form must be made in permanent black ink
• No divisions by using the round cop. Otherwise, tolak markah
8. Prepare and apply consent to charge

o In the event that the D did not apply for consent to charge to the end-F, the F's sol will
have to apply for consent to charge the property to the Bank.
o The form for application of consent to charge could be obtained from the respective
land office.
9. Prepare statutory declaration

o Some Banks require the borrowers to sign a SD to declare among other things that
they are not bankrupt and that they are purchasing the property for their own
occupation.
o Get this SD prepared for signing by the borrower.
10. Prepare the bill and legal fees
11. Execution by borrower

o 4 copies of:
• The loan agreement
• Form 16A
• Bills
• Statutory declaration
• Consent form (if any)
o 1 copy retain by Land office, 1 by bank, 1 by borrower and 1 for us (solicitor)
o During signing, must explain the important points etc
o Differential sum must be settled by the borrower --> must make it clear to the
borrower about this
o Selagi tak bayar differential sum, bank will not release loan to the developer
o If co, kena tambah Form 34 apart from Form 16A
12. After that, forward the documents to the end-finacier to execute

o The bank's attorney will check
o If in order, the attorney will sign on behalf of the bank
13. Power of Attorney registration number

o After that, the documents together with the covering letter pass back to the solicitor
(us)
o Inform the sol in the covering letter as to the name of the manager who has signed as
the attorney of the bank, his identity card number and the PA presentation number of
the PA
o These infos must be mentioned on page 3 of Form 16A (see sample)

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14. Stamp loan docs

o Make sure you already have the MOT and the original title from the developer
o This is because after stamp, must present the above doc to the land office
o Only one instrument will be stamped --> ad valorem
• The rest will be based on stamp ad valorem
• Ad valorem is based on the amount of market price of the purchased property
▪ The original LA/FA --> stamped ad valorem --> must go for adjudication to
determine the amount of stamp duty based on the market price of the
purchased property
▪ All other copies of the FA and 4 copies of charge doc need only be
stamped with RM10 stamp duty
15. Endorsement on original charge doc

o Get it paid over the counter or online
o Why endorse?
• Where stamp duty is paid over the counter, the original charge doc has to be
endorsed by the Stamp Office to state that full stamp duty ad valorem has been
paid on the original LA, otherwise the land office will not accept the charge for
registration.
o Where the stamp duty is paid online, submit the charge doc for adjudication, pay the
adjudicated sum (RM10) and get a sijil setem for the original charge doc.
o The land office requires this sijil setem specifically for the original charge doc before
they would accept the charge for registration.
16. Presenting charge docs for registration at land office

o These documents must be present when you present to land office
• Original MOT/Form 14A
• Original charge/Form 16A
• Duplicate copy of the charge
• A copy of the current year's quit rent receipt (cukai tanah and pintu)
• Original IDT
• Consent to charge (if got restriction in interest)
• The registration fees
17. Advising drawdown

o After presenting the MOT, the charge and form 16N for registration at the land office,
the next step is to advice drawdown of the loan.
o Banks would normally have their own checklist for sol to tick off the items to be
submitted.
o Where the Bank does not provide a checklist, please see sample in the spectrum.
o Docs that must be forwarded to the Bank for advising a drawdown of the loan:
• A letter received from the D setting out the necessary u/takings;
• A letter from the D confirming that the difference between the PP and the loan
sum has been paid;
• A copy of the land search done showing that the property is registered in the
name of the D/V and is free from encumbrances;
• A report from the official assignee's office confirming that the borrower and the
guarantor (if any) is/are not a bankrupt;
• SD required by the Bank and are attested by the Commissioner for Oaths;
• The original stamped SPA and original stamped FA;

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• The receipt from the land office for the presentation of the transfer and charge;
• The presentation number of the transfer and charge.
18. Loan will be released to the developer according to schedule

o Bank will release according to work done progressively like stated in Schedule 3 in our
SPA
o Purchaser has the responsibility to follow up with the payment from the bank to the
developer because if developer dapat lambat, developer akan kenakan duty to the
purchaser
o Each notice of payment from the D for the progressive payment of the PP must be
accompanied by a certificate from the D architect certifying that the relevant stage of
construction has been completed.
19. Forward the copies of documentation to the relevant parties

o The original FA/LA with stamp duty ad valorem paid and duplicate stamped charge
will be given to the Bank.
o The original charges were delivered to the land office for registration of transfer and
charge.
o The stamped copy of the FA and the charge doc will be given to the borrower for safe
keeping together with the presentation number printed on the receipt from the land
office is attached onto the borrower's copy.
o Keep also a copy of the FA and charge for the office file.
20. The bank will forward the loan amount

o Usually bank akan forward terus ke developer
• Easier
o But if the bank prefers to forward to the solicitor (you) then we have to transfer it to
the developer on time. Kalau lambat, purchaser will be charged extra
21. Collecting title and duplicate charge

o Collect the original Title and duplicate Charge from the Land office a week after
presentation.
o Forward the duplicate charge and the original Title to the Bank for safe-keeping.
Loan Documentation - H
Saturday, 27 June, 2020
9:28 PM
Loan Documentation: Procedures to prepare loan docs under

Schedule H
• Property bought under schedule G: title usually already available and hence the security doc is
the charge form.
• However, if the buyer of the house buys a unit of apartment/condo under schedule H, the
strata title would not be available to be charged as a security in case if purchaser applies for a
loan
o Why?
• Because developer cannot apply for strata title at early stage of construction.
• Sometime, it will take even longer time even after key dah bagi purchaser.

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o Hence, the only available title before strata is given is the master title
Once strata title is issued and can be registered, register strata as security for the
loan.
• If the purchaser buy condo under schedule H and strata title is not involved, what are the loan
documentations involved?
o Usually the security agreement are:
• FA
• DOA
• POA
o Bear in mind, deed of assignment here refers to by way of security (a replacement of
charge)
• There are also situation where FA and DOA combined into one to become Loan Agreement
Cum Assignment (LACA)
• For the 3 doc, not necessarily made for property bought under schedule H only.
o There are also situations where the 3 are used when property purchased under
schedule G but title has yet to be issued.
• Once individual title/strata title is out, lawyer has to prepare charge annexure and charge
form to execute charge so that can register charge form at land office.
Procedures
• Receiving letter of instruction (LI) from the bank
• Loan documentation begins when the sol receives a LI from the Bank to prepare security
documents for a loan offered to a B.
o Make sure you receive LI from the bank
o Don't simply prepare without LI because that is waste of time
• Docs that are enclosed with the LI:
o a copy of the LO addressed to the B;
o a copy of the SPA for the property for which the B is getting the loan.
• If we are acting for purchaser as well during execution of schedule H, usually we
already have the SPA. So easier to prepare the loan documentation
• The LI should state the type of security documents which are to be prepared by the sol.
• Security docs are instruments which give the Bank a hold on the property secured to them, ie
the Charge Doc (where there is title) or the DOA (where there is no title).
• Make land search, bankruptcy/winding-up search

• As soon as particulars of the title are obtained, conduct a land search against the Master Title.
Check the following info from the land search:
who the registered proprietor (RP) of the title is;
whether there is any charge against the property in favour of the bridging F;
• Search to see if there is any charge against the master title because sometime the
developer takes loan from bank to finance the project and in such situation, the
master title is charged to bridging financier.
• This is important to know because part of the purchaser's loan need to be
remitted for the purpose of paying the loan to the bridging financier.
Whether there is any private caveat lodged by the buyers against the parcel portion of
the title;
• Usually takda but there is one circumstance where developer will let you lodge a
private caveat
whether there is any restriction in interest endorsed on the title.
• Eg: need to get state authority's consent.

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• A bankruptcy/winding-up search must be made on the purchaser/borrower, the guarantor (if

any), the vendor/developer of the property; and the registered proprietor of the title.
• Bankruptcy search is for the sake of advising drawdown of the loan to the bank
• D's letter of undertaking to refund loan sum

• The end-F's sol must write immediately to the D to give them notice that the P has obtained a
loan facility and for an undertaking to perform their dues in consideration of the Bank
releasing the loan.
• The letter to the D serves among other things:
to inform the D that a housing loan has been offered to the P;
to obtain an u/taking from the D that the B's interest in the property as security for the
loan is protected;
to give notice to the D that if the master title is charged, a Redemption Statement cum
Letter of Disclaimer is due from the bridging F.
• In the same letter, ask the developer to undertake to perform their consideration (in the
event that the security cannot be perfected, the loan sum will be given back to the bank)
Standard undertaking
Important to safeguard bank's interest
• Bridging financier's redemption statement cum letter of disclaimer

• Need to know whether the developer charge the title to bridging financier
If so, developer need to provide redemption statement and letter of disclaimer to the
purchaser's financier.
• Letter of disclaimer: to relinquish bridging financier's right from foreclosing the
purchaser's unit/house if the developer fails to pay the loan to the bridging
financier.
• Usually, the bridging financier will issue the letter and redemption statement to
the purchaser's financier so that bridging financier won't have interest on the
property bought by the purchaser
• Where the master title is charged to a charge who is a bridging F (BF), the D should deliver to
the sol the redemption statement cum letter of disclaimer issued by the bridging F.
• Important to get this documents because you need to use part of the loan sum to pay the
bridging financier. This payment is called REDEMPTION SUM.
• Once redemption sum is paid, the BF will discharge the property and any interest and right to
the purchaser's financier.
• Redemption sum will usually written in these docs.
• Write to purchaser's solicitor for their undertaking

• The Bank's sol has to write directly to the P's sol for their u/taking to deliver:
the duly executed, adjudicated and stamped MOT upon the title to the parcel being
issued;
• Important because the developer will usually provide the duly executed MOT to
the purchaser's solicitor and later on the solicitor will do the adjudication and
stamp the MOT.
• Hence, this means that purchaser's solicitor is the one in possession of the MOT
• This usually happens if purchaser's solicitor and purchaser's financier solicitor
different people
o Even if the same, kena juga buat for advising the drawing down later
the original IDT to the property or parcel upon the strata title being issued;
the quit rent receipt for the current year; and
the registration fees for the transfer.

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• Even if strata title not available and there is no presentation involved at the land office, the
purchaser's solicitor still has to give the undertaking to protect the interest of the purchaser's
financier in the event once strata title is issued.
Preparing the loan docs

• Loan docs required to be prepared are standard docs - need to be purchased from the B.
• For property without title, prepare 4 copies of each of the following docs:
the Loan/Facility Agreement (LA/FA),
the Deed of Assignment (DOA); and
the Power of Attorney (PA).
• The latter 2 are the security documents
• All the sol has to do is to fill in the schedules to the LA, DOA and PA with information required
that can be obtained from the SPA and the LO.
• When describing the property in the schedules, it is important also to include a description of
the master title.
• All documents must be stamped but only FA and DOA register at land office.
• PoA also need to be stamped but this is the only doc that needs to be registered at the HC
(not land office)
• Usually bank has standard agreement for DOA and FA and POA --> just pay and download
from the bank
Preparing the bill and legal fees

• For the borrower to pay
• After execution, can pay to you at the same time
Execution by borrower
• When the loan documents are prepared, get the borrower to sign the
DOA
FA
PA
Bank to execute
• Upon the documents being signed by the borrower, send all the loan documents to the bank
for execution by their attorney
Stamping of documents
• Upon the loan documents being executed by the bank, stamp the
FA
DOA
POA
Registering the POA

• Register the PA with the HC
• Keep the receipt from the HC as it has to be enclosed to the bank when advising the
drawdown
• The court will chop G to enclose the power of attorney number
Advising drawdown for the redemption sum

• Prepare a letter of advise to the Bank to release part of the loan to settle the redemption
sum.

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• The redemption is paid to the BF directly and it is deemed to be part of the purchase price
paid to the developer
• The rest of the loan will be drawdown by the Bank progressively upon receiving the Notice for
Progressive Payment from the developer.
Forwarding a redemption sum to the BF

• Upon receipt of the redemption sum or part of it from the Bank, forward the said sum to the
BF
• The letter forwarding the cheque to the BF must be copied to the developer for their record
and so that the developer will know that the bridging loan has been settled or partially settled
Advising by way of private caveat

• This happen when the land office already issue individual title but cannot register because the
title still with developer or BF. Hence, if this happens, advice by way of private caveat.
• Advice by way of private caveat can only be done once the title is already issued but you
cannot hold the original title because pending from developer or BF.
• Lodging private caveat creates a temporary security for the Bank before charge is created
(because at this point, charge cannot formed yet)
• Rush the drawdown by the bank because the billing is already due at this point
• The private caveat prohibits the subsequent registration of any dealing executed by the
proprietor/V.
• Upon the strata title to the parcel being issued, the private caveat is replaced by a charge over
the strata title as security for the Bank.
• In order to register a private caveat, prepare 3 copies each of:
Form 19B (entry of caveat)
SD
Form 19G (removal of caveat)
• Why need both entry and removal? Because nanti bila nak register charge, kena
remove the caveat and hence Form 19G kena buat jugak
• Forward the 3 docs above to the bank for their execution. These docs are to protect interest
of the bank
• After the bank's execution, before advising the bank, present to the land office for registration
against the master title.
• To present the private caveat, must submit:
2 copies of Form 198 signed by the Bank;
2 copies of the SD;
Pay the registration fees
• Using the receipt from registration fees, can advice the bank to release the loan
amount to the developer or BF
Forward the balance sum to the developer

• If involves redemption sum, advise bank to release the loan twice:
One for BF
Balance to developer (only after payment to BF is settled)
• Bank release to us as the bank's solicitor.
• Paid progressively depending on the billing as mentioned in schedule 3 of schedule H.
After advising drawdown

• Forward the subsequent cheques from the bank to the developer in accordance with schedule
of payment
Easier if forward to the developer terus

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If bank send to solicitor first, then must do ASAP. Otherwise, developer will impose
penalty to purchaser
• Send a stamped copy of DOA to developer for their record.
• Collect PA from the HC upon registration, note the PA number at the last page of the PA and
forward the original copy of the PA to the bank for safe-keeping
• Send a copy of the LA/FA, DOA and PA to the borrower for safe-keeping
Solicitors fees and stamp duty

Sunday, 28 June, 2020
1:03 AM
• Solicitors are only entitled to charge fees as set out in Solicitors Renumeration Order (SRO)
• The Solicitors Renumeration (Amendment) Order 2017 (SRAO) has been gazetted and will be
in from 15 March 2017
• The SRAO makes several important changes to the SRO which sets out the fees payable to
lawyers in property transactions, including
o Sale and purchase transactions (subsale and developer transactions);
o Leases and tenancies; and
o Charges, debentures, and other security or financing documents.
Lawyer's Fees - First Schedule of SRO (Non-developer's case)

• This is only applicable for subsale agreement
• Under 1st schedule, if we are using transactions governed under HD A (both schedule G and H
transaction), you use the next calculation
• As an illustration, under the old SRO scale, the fees chargeable for the sale and purchase
transaction of a RM1.5 million property would be RM10,450.00, while the fees under the new
SRAO scale would be RM12,500.
• How to count:
o 1st 500,000 x 1% = 5,000
o 2nd 500,000 x 0.8% = 4,000
o 3rd 500,000 x 0.7% = 3,500
Hence, total fees: 5,000 + 4,000 + 3,500 = 12,500

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Lawyer's fees - first schedule of SRO (Developer's case)

• Applicable when we use Schedule G and H because these are under HD A
• How to count: if the purchase price is RM1,500,000

o 65% of the scale fees
• 65% x 300 = 195
Lawyer's fees - Third schedule of SRO (Charges and other security/financing

documents)(Non-developer's case)
• Payment if not under Schedule G and H
• How to count: If the loan document is RM1,200,000

o 1st 500,000 x 1% = 5,000
o 2nd 500,000 x 0.8% = 4,000
o 3rd 200,000 x 0.7% = 1,400
Hence total is 5,000 + 4,000 + 1,400 = 10,400

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Lawyer's fees - 3rd schedule SRO (Charges and other security/financing

document) (Developer's case)
• If involve schedule G and H
Lawyer's fees - 4th schedule of SRO (Discharge of Charge and Deed of Receipt
and Reassignment)
Lawyer's fees - 5th schedule of SRO (Preparing, filing or witnessing

miscellaneous documents)

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Stamp duty scale on MOT

• A buyer will need to pay stamp duty on the transfer document
• Adjudication is the process where the property is assessed to know the stamp duty

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Stamp duty scale on loan agreement
Example of stamp duty calculation

Property Price RM500,000
Loan Amount RM450,000 (90%)
Property Stamp duty :
• First RM100,000 1% RM1,000.00
• RM100,001 To RM500,000 2% RM8,000.00
TOTAL TO PAY RM9,000.00
Loan Agreement Stamp duty :

• RM450,000 0.5% RM2,250.00
TOTAL TO PAY RM2,250.00
Assignment to-do list

Thursday, 7 May, 2020
1:08 AM
• Fix (if any):

o List of property details and purchase price
o Sale form
o SPA schedule G
o SPA drawings and building description
• Prepare
o The duly executed acknowledgement of legal representation
o The duly executed SPA
o The duly executed Form 14A/MOT
Assessment 5
Monday, 15 June, 2020
11:56 PM
• Nasihat kepada PURCHASER

• Read up on:
1. Letter of acknowledgement

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a. For SPA
o It is a document to show that we as solicitor is acting for the developer.
o The purchaser needs to understand that although the document SPA is actually for the
purchaser and the one paying our fees is the purchaser, we are still acting for the
developer.
o Nonetheless, the purchaser needs to know that we cannot act for them and they have
the right to appoint their own solicitor to act for them if they want to
b. For loan documents

o Function similar to the one for SPA
o Tell the purchaser that we are not acting for them, instead we act for the financier (the
Bank) regardless if we witness or attest the execution of the document on their behalf
o Tell the purchaser that they have to bear our fees on behalf of the financier (logically
sebab dorang mmg berhutang dengan financier pun)
o Tell the purchaser that they have the right to engage with a separate solicitor to act on
their behalf
2. Important terms and conditions of SPA (Schedule G)

• Clause 4: purchase price of property
o The total purchase price that the purchaser has to pay is RM3,108,888.00
• Clause 6: loan
o If the purchaser wants to obtain a loan for the payment of the house, he can within 30
days after receiving stamped copy of the SPA, make a written application for the loan to
the developer. The developer then will help to find a bank to loan the agreement.
o If the developer finds one, then the purchaser needs to execute all necessary loan
documents and pay all fees, legal costs and stamp duty within 30 days
o The loan can only be used for the payment of housing payment
o If the developer found one, but the loan was not given to the purchaser because
purchaser's ineligibilty of income (bankrupt etc) and the purchaser told the developer
so, developer will keep 1% of purchase price, return the rest (if any) and cancel the SPA
o If the purchaser fails defaulted in the requirement of loan agreement causing agreement
to be retracted, the purchaser still need to pay purchase price but pay yourself
o If developer cannot find any bank, then developer shall within 30 days after receipt of
rejection --> notify purchaser. Nonetheless, the timeline in 3rd schedule remains
o The developer also need to make letter of undertaking that the money will be refunded
to the bank if land cannot charge
• Clause 10: Interest on late payments

o If the purchaser pays later than the time prescribed in 3rd schedule, then there will be
late payment charges (interest) at 10% per annum
o But the developer cannot impose the charge if late payment due to:
• Relevant notice incomplete or does not comply with the requirement of s.5(2)
• If land is charged to bank, bank delays or fails to issue and deliver the redemption
statement and undertaking
• Clause 11: default by Purchaser

o If the purchaser defaults the payment by failing to pay any instalments set in 3rd
schedule or never pay at all or breach the term or commits an act of bankruptcy --> the
developer can annul the sale of the property and terminate the SPA

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• Clause 14(1): the adjustment of the property in the event that the area of the land is bigger or
smaller than the area stated in the SPA
o If the area of the land is different from the measurement in the final IDT when issued,
then the purchaser can get RM60.00 per square foot
• Clause 20: maintenance of services

o The developer will handle the maintenance of the property from the time the purchaser
takes vacant possession of the property until the maintenance service is taken by the
appropriate authority (as should be)
o Since developer is maintaining it, the purchaser must pay for the costs and expense now
and then
o The purchaser shall pay the contribution (fees for maintainance service) for the first 6
months in advance
• Clause 24: Time for delivery of vacant possession

o The vacant possession will be given within 24 months from the date of SPA
o If the developer doesn't give it within that 24 months, the Developer must pay to the
Purchaser sum of 10% per annum of the purchase price until the purchaser gets the
property
o If the developer doesn't pay immediately after the developer has given notice that the
taking of possession will be late, the purchaser is entitled to deduct such sum from any
instalment of purchase price
o If the purchaser wants to take any action against developer, can only do so after the
purchaser takes possession of the property.
• Clause 27: Defect liability period

o If there is any default or damage within 24 months after the purchaser takes possession
of the land, the developer shall repair it at its own costs.
• 3rd schedule: schedule payment of purchase price

o Pay by instalments and according to time stipulated here
3. Important terms and conditions of loan documents

a. Facility Agreement
b. Form 16A
c. Charge Annexure
d. Statutory Declaration
My presentation
1. Payment clause - clause 6
o You must make all payments on or before the Repayment Date
• Repayment Date is 1st day of that month or such other date as the bank may in
its discretion notify you from time to time
o Must be paid in RM and in immediately available fund
• Best to use bankers cheque
o Make sure that the payment is done without counterclaim, deduction or withholding
(the amount cannot be lesser than what it is supposed to be).
• If this happens, you must go to the bank and add in additional amount so that
the net amount received by the bank is in accordance with the correct amount.

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2. Prepayment - clause 7 letter of offer

o Prepayment clause is the clause enabling the borrowers to pay off the loan in full
ahead of the schedule.
o If follow prepayment clause's terms, then the borrowers can do so without incurring
prepayment penalty
• Logic why the repayment must be done after lock-in period: Because the
financier/bank would like to collect interest from it
o Borrowers is allowed to do prepayment if:
• Facility has been disbursed (meaning that the loan has been given out)
• The source of prepayment is from the borrower's own money
• Must be done after lock in period of 3 years
▪ If done before 3 years, the borrowers will be charged with a prepayment
fee of 3% to the amount of facility granted.
▪ The 3% is independent of the total amount of facility granted (additional
sum)
o After 3 years, the borrowers can fully prepay the facility subject to the borrower giving
the bank one month notice
• Failure to give one month notice --> same thing happen if prepay before expiry
of lock-in period
3. Events of defaults - Clause 9 FA

o If any of the event of defaults in clause 9.1 happens, the bank can recall, withdraw
and/or suspend the facility but the bank must give notice in writing for you saying that
the bank intends to do so.
o If you receive such notice, you must immediately pay to the bank all outstanding debt
that you had. If not, the bank can proceed with the sale of security or can take legal
action against you.
o If the amount of the amount the bank receive from you and/or the amount from the
sale of security is lesser than the amount actually owed, then the shortfall will be born
by you
4. Secured loan - house is charged
5. Differential sum
o Borrower must settle the differential sum after signing SPA
o Differential sum is the balance between the purchase price and the loan you are given
o In this case, your DS is 10% --> Borrower must settle with developer themselves
• Because the HTL given is 90% of the purchase price
o Before the bank releases 90% of the loan, must settle the DS
o By right, when you come here and execute the doc, the 10% of the purchase price
must be brought together.
o Developer will give confirmation letter to the bank stating that 10% is paid
o If there's a delay in differential sum, the developer can charge penalty. (find clause
saying this) --> probably clause 10 SPA (late payment charges)
6. Clause 12.7 - stamp duties, registration fees and other costs

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o You must pay the Bank all costs and expenses that the Bank incurs in preparing,
execution, registration and perfection of the doc (basically because the bank has done
all the documentation work)
o Payment is made on indemnity basis. This means that the bank will pay first for you.
Then, you need to pay the bank with interest
o Legal fees will be born by you regardless if the agreement is cancelled. This is why you
signed the letter of acknowledgement in the 1st place.

Conveyancing Full Notes

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Conveyancing Full Notes

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Conveyancing FULL Notes

conveyancing (Universiti Malaya)

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HANIS HAZIDI (LIA160039) Sem II 2019/2020

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HANIS HAZIDI (LIA160039) Sem II 2019/2020

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HANIS HAZIDI (LIA160039) Sem II 2019/2020

Downloaded by Alisya Tajularifin (alisyatajularifin01@gmail.com)

HANIS HAZIDI (LIA160039) Sem II 2019/2020

Schedule G - salient provisions

SPA – Purchase price of the property

SPA – Payment of the purchase price to be made in instalments

When payment is requested in accordance to 3rd schedule, a certificate signed by

Third • Build then sell (BTS)

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HANIS HAZIDI (LIA160039) Sem II 2019/2020

Clause 6 *refer to the doc (ASSESSMENT 5) – got new changes there

Clause 10 Late payment charges

Clause 11 Default by Purchaser

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HANIS HAZIDI (LIA160039) Sem II 2019/2020

• breach the term of SPA, or

*Clause 1 Interpretation - Appropriate Authority to provide water, electricity,

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HANIS HAZIDI (LIA160039) Sem II 2019/2020

• Developer has to pay the liquidated damages to Purchaser immediately after D

Clause 27 Defect liability period

• Difference between Schedule G and H

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HANIS HAZIDI (LIA160039) Sem II 2019/2020

• Preparing Schedule H agreement

On part of purchaser, fill:

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HANIS HAZIDI (LIA160039) Sem II 2019/2020

o Other particulars need to fill (refer to the one uploaded in spectrum):

• Salient provisions of schedule H (refer to slides uploaded)

• Deed of Mutual Covenants

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HANIS HAZIDI (LIA160039) Sem II 2019/2020

Schedule H - salient provisions

Schedule H - salient provisions

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HANIS HAZIDI (LIA160039) Sem II 2019/2020

o One of the important clauses to highlight

• Ask also whether buy with cash or loan

• Interest on late payment

• Clause 13: adjustment of the purchase price

• Clause 17: infrastructiure and maintenance

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▪ Responsibility of the developer to maintain and build the infrastructure for

• Clause 18: duty to construct common facilities

• Clause 20: sinking fund

• Clause 21: Insurance

• Clause 22: payment outgoing

• Clause 23: water, electricity, gas piping, telephone trunking

• Clause 26: time for delivery of vacant possession

• Clause 30: defect liability period

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HANIS HAZIDI (LIA160039) Sem II 2019/2020