Property in Malaysia for sale and rent | Buy, Rent and sell real estate and homes

Hey everyone, happy new year!

I need some help, hope you guys can share your ideas/experience with me. This is my first property and the case is in process currently but I'm having a problem.

I've paid 10% 2 months ago. It's a master title and was waiting for the first transfer to happen (developer to vendor), vendor is a registered company. This is a contra case (means they received the house from developer contra to the project they've done for them).

Alright problem now...developer not agreeing on signing the transfer because according to them the SPA is under someone else (individual), that acted as nominee for the vendor (company). I got SPA with the company's name in it and suddenly this came out (after 2 months). My 3+1 starts only after the first transfer (developer to vendor), so I think it's safe to say it wont be a problem but now comes the real problem.

According to my lawyer, they received a supplementary agreement from vendor's lawyer and want me to sign an agreement with the individual, in which the developer will agree to do the first transfer. I'm given 2 choices :

1. Sign the supplementary agreement and my lawyer will present the case to bank to agree.
2. Lawyer will amend the SPA that I've signed with the company, change the name to the individual and sign again.

As for the 10%, my lawyer said got 2 ways also :

1. If using supplementary agreement, lawyer will add clause that 10% is paid and vendor (individual) cannot claim any further charges from purchaser (me).
2. If amend SPA, the clause is already there and the vendor (individual) will accept it.

I'm very disappointed with all these delays and now my lawyer have to choose either one and present the case back to bank to accept.
After that they'll send docs to vendor's lawyer and they will proceed with the first transfer.

I've waited more than 2 months. No idea how long more. I'm worried, as this is my first property. Please advise what should I do, and which is the right decision.

I think there is no problem after all since you will not lose anything but only time..what u should do is to choose either one from the options. This case is related to someone lucky..don't be bothered..

There is a real problem. You have not indicated whether this is a shop, apartment, house or etc. Since the vendor is a company with a registered address under the Companies Act, it will make a lot of difference whether the initial agreement signed between this company with the developer is a scheduled agreement under the Housing Development Act (HDA) Sch G - for house or landed property, Sch H - for stratified property) or shops (not under the HDA).

If the property is without title, then assignment will be applied. For scheduled agreements under the HDA, the new provision under s.22D HDA gives an added protection for the consumer where the developer is legally obliged to assign by way of notice of assignment since this is provided by the HDA. However, if it is a shop, ie. for commercial purpose, even if it may not be utilised as a commercial building, (since the HDA do not cover for commercial purpose), there is a lacuna for commercial building and consumers are vulnerable since no protection, no time limit and no remedy is provided in the event complications set in later.

The real problem is that a nominee cannot subrogate and take as a 'garnishee' to assume the name of the company with a registered address, on an agreement by a mere supplementary form to be a separate agreement at a later date. The 10% deposit monies paid to your solicitor is not entering into the developer's housing account and so, you are technically not a purchaser wiith the developer. This is due to the provisions under HDA to create a trust obligation where developers keep these monies until the project is completed.

Therefore, the assignment may not be put to you as the end purchaser without proof that the 10% deposit is really deposited into the developer's housing account.

You should deal directly with the developer and since you have already paid your 10% deposit, you may consider putting your problem with your solicitor and see how this develops. Somehow, it may not even be possible to enter a private caveat and it seems the whole idea is to nullify your interests in losing your right to protect your interests by a private caveat, from the onset.

Hi Raymond,

First off thanks a lot for your time for replying. It's a house, and according to the SPA it's under the company but after the SPA was signed, there was another agreement (not sure what was it), which was signed by the developer with company's nominee. Now the developer is only looking at the nominee as the owner and will only transfer under him. My lawyer said (update) that both them and bank agree on carrying this case forward with the supplementary agreement, whereby signed by the nominee, acting as owner and agreeing on receiving 10% and also transferring tittle to me. Developer don't agree on doing a direct transfer to me, they'll only do to the vendor (master title).

I'm waiting for the progress and will update this further. Please advise what should I do to make this transfer quick and secure. Thanks!

Raymond Chu wrote:

If you can afford another lawyer to check through this supplementary agreement,
then by all means, do so, to protect your interests.

At least, you know your legal standing as the rightful purchaser.

Equitable interests alone is very fragile and if you are relying on the
bona fide concept of purchaser for valuable consideration, at least,
be a smart one. No harm in taking a smart move to protect your interests for
a huge investment to a commoner like most of us.

Most people who sell do so to buy another home. Put together a list of neighborhoods where you may want to live and drive them. Go to open houses. Check out pricing between newer homes vs. older homes. Weigh your options. You might find you prefer to stay where you are.