Questions You Should Ask

Your Lawyer before Buying a

Residential Property in

Malaysiaby Khairul Anuar

Landed property

∙ Is property like bungalow, terrace houses etc

∙ which is on land

∙ has individual title

∙ Selangor & Penang- there are landed properties sold without any title (strata property)

∙ Strata property title

✓ after 2007, it can become landed property without title

✓ later the management managing the property

Gated and guarded property

∙ people live within the gated and guarded properties

∙ many types, for example: gated without being guarded or guarded without being gated or

both

∙ doesn’t have its own law

∙ sold under property without title

∙ most property in Klang Valley are just community, which is managed by the resident

association- don’t have power like strata property has

∙ registered with a local authority

Recording: http://kclau.com/webinar/ask-lawyer-property/ 1/7

∙ no power to sue and association like those registered in SSM( Suruhanjaya Syarikat Malaysia)

BUYING FROM A DEVELOPER

∙ How to choose a reputable property developer?

­ Kementerian perumahan dan kerajaan tempatan has a blacklist of bad reputable

property developer

­ Bad reputation developer area- Banting- developers sell property without using

schedule G & H

∙ The transaction when buying from a developer?

­ Protection under Housing Development (Control and Licensing) Act 1966

✓ main act which housing developer is controlled with

­ Schedule G

✓ for landed property

➢ sold using individual title

➢ issued to purchaser

➢ get the individual title in purchaser’s name

➢ most cases, this title is kept by the bank which financing the purchase

of the property

➢ but purchaser’s name is already on the title

­ Schedule H

✓ condominium style of development

➢ show which unit is yours

➢ marked with highlighter

➢ parking or any other buildings sold with your property

➢ tell you about common property with other owner within that

development, like garden, visitor parking, corridor, lift(which needs to

share)

∙ Issues when buying a property from a developer

­ Interest charge

✓ when you are late to pay schedule payment

✓ take bank to finance your property

✓ 21 days to pay the amount you have to pay

✓ stated at the back of schedule

✓ when can the developer charge you

✓ send you a bill with the architect certificate or architect confirmation about

Recording: http://kclau.com/webinar/ask-lawyer-property/ 2/7

particular part of your property that you need to pay

­ Vacant possession

✓ take the key from developer

✓ can go into your house

✓ can stay there

✓ when the Certificate of Completion and Compliance has been issued, then the

developer can actually give you vacant possession

­ Warranty

✓ how long you can claim any defect from housing developer

✓ for schedule G, developer has 2 years to build the house for you and for

schedule H strata property, 3 years

✓ 18 months warranty for landed property, 24 months for strata property

✓ even after the warranty runs out, you still can claim from housing developer if

there is major defect- must go to court if the developer doesn’t want to

entertain you

BUYING FROM ANOTHER INDIVIDUAL

∙ Type of contract involved

­ Sale & Purchase Agreement

­ Proclamation of Sale (Auctioned property)- everything you need to know about the

property

∙ Issues when buying from another individual/ secondary market

­ No set template/ Contract Act

✓ Visit the property first- whatever you see is what you going to get

✓ Read the contract properly

­ As is where is basis/ willing seller, willing buyer

Recording: http://kclau.com/webinar/ask-lawyer-property/ 3/7

About lawyers:

∙ how much they charge,

∙ how to choose one etc

More complicated issue- strata property, individual title etc

Q&A session

Recording: http://kclau.com/webinar/ask-lawyer-property/ 4/7

1. When do you think it’s the best time to ask a chronology from a lawyer, before the whole

process started or after the process finish?

­ Anytime

2. How do we know that the individual title has been issued to vendor?

­ Property search- the first thing the lawyer needs to do when they are hired is do a

search on property

­ After the search will know

­ Sometimes the vendors do their own search before they come to lawyer- go to land

office and check on pro

­ Land office: ask help from counter; for property with strata title: go to developer

office or management office

3. Since JMB took over the management from the developer, I have to pay a monthly charger.

However there were some parking chargers before it takes over which I haven’t pay. So

now the developer wants to charge interest for these chargers. Am I obliged to pay to the

developer?

­ The developer has to deal with the Joint Management Body (JMB)

4. How much is the maintenance fee for strata title per square feet? Is there any law on how do

you determine reasonable rate?

­ No specific law

­ Depends on the area: bandaraya is more expensive than perbandaran; perbandaran

will be more expensive than daerah

­ Developer will tell you the rate when they sell the property

5. I am a Sino-Bundu, Sabah bumi. What entitlement in purchasing of a property? Only limited to

bumi lots?

­ Bumi quota: 30% to be sold to bumi purchaser

6. What do we have to watch out for when buying a Lelong property?

Recording: http://kclau.com/webinar/ask-lawyer-property/ 5/7

­ Do visit the property before you bid

­ No law to protect you

­ Have a good lawyer because auctioned property has a timing of 90 days for you to pay

­ Make sure the lawyer knows how to negotiate with the banker which is auctioning the

property (to get an extension)

7. What happen if the property has been renovated without the Authorities Approval for

sub-sale?

­ Have to pay penalty

­ Add in a course that stated the seller is responsible for any penalty

8. On blacked listed developer, what is stopping the blacklisted developer directors from

forming a new development firm?

­ Listed company will guarantee for you to not have abandoned project

­ Check their record, like their last audited account

9. Can a vendor change the agreed selling price after the 2% is paid?

­ If you agree with it, you can continue with the purchase

­ If you don’t, you can ask back the 2% payment

10. I bought a Sovo in Ampang and I signed the SNP and pay 10% of deposit, I signed bank loan

offer too. May I know if I signed the SNP and the developer sold the existing project to

another new developer, will the SNP still can be used; can the new developer asking for

higher price which is written in my SNP? Will the new developer follow all the rules and

regulation which is written in SNP?

­ Sovo is a commercial property which is not governed under the Housing Development

Act- not really under Kementerian Perumahan

­ It’s up to you whether you want to follow the new developer or not

­ The new developer can make a new offer to you

Recording: http://kclau.com/webinar/ask-lawyer-property/ 6/7

Notes prepared by Teo Jin Jing. Your feedback on the notes prepared is welcome. Please email to

feedback@kclau.com. Thanks in advance.

Recording: http://kclau.com/webinar/ask-lawyer-property/ 7/7