May 19, 2011

Malay Reserve vs. Bumiputra Unit (Property)


This is an excerpt of part of my second book or consider it as a sequel to my first book '40 QUESTIONS YOU SHOULD ASK YOUR LAWYERS BEFORE BUYING A RESIDENTIAL PROPERTY IN MALAYSIA' which is still to be published. It is an attempt by me to differentiate the meaning of Malay reserved property and bumiputra property or better known as bumiputra unit in housing development. As it is still a work in progress, to be proof-read and edited, due to my skepticism in my success in explaining these two terms without all the controversies, I am still open to criticism but please keep in mind of me trying to explain about the current situations with regards to the two terms than trying to give new meanings to the two issues.  Here goes :

A property which has been labeled as a Malay reserved property and a property which is known as a bumiputra property are two different types of properties. Each type of property can be transacted but there are restrictions on any transaction done on them. A whole lot of chapters have been devoted to the word ‘Malay reserved’ and ‘bumiputra’ but let us look at the differences of these types of properties according to the land law in force. A Malay reserved property is always marked with the word MALAY RESERVED on the individual title. Some called such individual title as the Red Grant or Geran Merah due to the red ink which is used to write those words.

As for any property which is known as bumiputra unit, there is rarely such label on the individual title of the property. In the usual case, the Sale and Purchase Agreement will determine whether the property is a bumiputra unit or not. In certain state, the label ‘Bumiputra lot’ can be found in the restriction-in-interest and in much rarer case, you can find the label ‘Bumiputra lot’ labeled much like as the case with Malay reserved property. The term bumiputra lot relates on the bumiputra quota set on the housing developer by the authority. In some cases, the quota is set for the whole development and requires the bumiputra ownership to be of certain percentage at any one time without any mention of it at all on the Sale and Purchase Agreement. That is why the control for any transaction of a bumiputra lot is in the hand of the housing developer which sell the property in the first place.

Who can transact a Malay reserved property? According to the Malaysian’s Federal Constitution, a Malay is defined in Article 160(2).  In that Article, there are two criteria of a Malay. The first criteria is for a Malay person to profess to be a Muslim, habitually speaks the Malay language, and adheres to Malay customs. Second, the person must have been either domiciled in the Federation or Singapore on Merdeka Day, or born in the Federation or Singapore before Merdeka Day, or born before Merdeka Day to parents whom one of them was born in the Federation or Singapore (collectively, the "Merdeka Day population") or is a descendent of a member of the Merdeka Day population. These are what defined Malay in the Malaysia’s Federal Constitution and is used to define the word ‘Malay Reserved’ on any individual title.

Here is the general rule on the transaction of Malay reserved property. A Malay reserved property can only be transacted between Malays. An owner of a Malay reserved property cannot sell it to a non-Malay or a foreigner. The signature on the Sale and Purchase Agreement can be witnessed by a lawyer but any document which is use at the land office for any transaction, such as Form 14A of the National Land Code which is use to transfer the property from one party to another, must be witnessed by a Registrar of Mineral and Land, the District Officer or Assistant District Officer of any land office. It does not has to be the officer of the land office where the property is situated but the signature of the transferor and transferee must be witnessed by either one of them.

As for bumiputra property, the restriction is imposed on anyone who is regarded as a bumiputra. Anyone who is regarded as a bumiputra is given special privileges and is reserved certain quotas on certain matters including property. They are even given a special discount when buying a property from a housing developer. There is no specific clause which define the word ‘bumiputra’ in the Malaysia Federal Constitution unlike the word ‘Malay’. However, in Article 153 of the Malaysia’s Federal Constitution, it is mentioned that there is a quota for Malays and natives of any states of Sabah and Sarawak. This has been used to define the word bumiputra which also relates to bumiputra lot in a housing development.

For bumiputra property, as it is a quota set on housing developers but is rarely written on the individual title for property sold with title, the housing developer will controls any sale to the general public and make sure the quota imposed is met. Usually, the amount of thirty percent of the total houses sold is set on the housing developer to sell to bumiputra buyers. A special price, which is usually set at seven percent discount, is usually given to any bumiputra buyers. When you buy a bumiputra unit from a housing developer, and get a bumiputra discount, your property is restricted from being sold to non-bumiputra. There are exceptions to the rule in certain cases. In the case where the property is not labeled as a bumiputra unit on any of its documents, either on the Sale and Purchase Agreement or on the individual title itself, a bumiputra owner can apply using a consent to transfer to transfer the property to a non-bumiputra buyer. If you bought a property without title where you must acquire consent from the housing developer of the property to sell the property, the housing developer may have to consider whether at that particular time whether the quota of the bumiputra units in the whole scheme is at the current percentage of the quota imposed on the housing developer initially by the authority.

55 comments:

Builders in London said...

Very informative post. Thanks for taking the time to share your view with us.

Bahirah said...

Hi,

i would like to know. i am selling a property under a master title. it is a bumi lot. the purchaser is non bumi. and the property is situated in daerah petalind, selangor. is it possible for me to sell off the house?what is the procedure?

thank you

Bahirah said...

Hi,

im Bahirah. i would like to ask your opinion, im selling off one of my properties. it is still under the master title and the property is in selangor. the issue is it is a bumi lot. and the purchaser is not bumi. how do i tackle this problem? what is the procedure to transfer the property?

thank you.

kruel74 said...

Bahirah, I did explained in my post how you can sell off a property under a master title. You need to ask the developer to allow you to sell it. You need to check the Sale & Purchase Agreement you have signed with the housing developer when you buy it whether there is any mention in it that it is a bumi lot. It may just be a property under a bumi quota.

The procedure of selling it the same if it is not a bumi lot. You will need the developer to sign the deed of assignment which they may refuse if the buyer is a non-bumi.

One last advice, pay a lawyer to advice you and don't just use the buyer's lawyer. And make sure the agreement between you and buyer covers issue of termination of the agreement if the consent can't be obtained

Jason said...

Hi Kruel74,

I bought a sub-sale property (6 years condo, freehold) under master title from bumi. I'm non-bumi and I'm not sure if the property is a bumi lot or bumi quota. According to my lawyer, the title does not contain any restrictions (state authority's consent is not required) and the consent from the developer has been acquired.

(1) Since the property is still under master title, is there any complication for me to obtain the strata title? Would there be by any reason that the state authority refuse to issue the strata title since the unit is bumi lot or bumi quota?
(2) Would there be any potential issues if I want to re-sell it to non-bumi in the future?
(3) Once the strata title is issued, do I still need the consent from the developer or state authority?

Many thanks.

Jason said...

Hi Kruel74,

Additional information for my previous post on 5/6/11:

1. The owner (first purchaser, bumi) told me that he bought the condo with bumi-discount.

2. I think the Sale & Purchase agreement (between the first purchaser & the developer) does not mention anything about the bumi lot. I will check it again.

Thank you.

kruel74 said...

Jason,

I am sorry for taking quite long to reply as I was travelling. I am of the believe, once you have taken any bumiputra discount, although there is no mention of the property being a bumiputra lot either on the SPA or the title, you have made it into a bumiputra lot.

I have a lot of clients who argued otherwise, even to the point of wanting to give back the bumiputra discount to the developer but as long as you took the discount, you have made it into a bumiputra discount.

If the title is issued and there is no mention of it on the title, you are scott-free but if not, you can't argue that you didn't know.

I may write my experience in handling matters involving sales between bumiputra to non-bumiputra in the near future

Eunice said...

i am buying a malay unit condominium which is still under master title. i had confirmed with the developer that the developer consent can be obtained but the issue is the land title is with restriction "state authority consent is required". in this case, is it possible for the property to be transferred to non malay?thanks

kruel74 said...

Hai Eunice,

You may have a problem when you get your strata title later. It would help if there is no label on your S&P that the property is a bumiputra property and the strata title too when it is out.

Depending on the location of your property, you (or specifically the seller) has to give reason(s) for selling his property.

Check your lawyer

Akbar said...

Hi,

I am a Muslim Malay / Bumiputra. Can I buy a Non-Bumi title property? How could I proceed with the necessary?

Thanks

Lizal said...

Hi,

I have just bought a house under the Malay reserve land from the Vendor who is migrating in Saudi Arabia. Currently, SPA has been signed by both parties, vendor and buyer and loan has been approved. However, the lawyers said that I have to wait for the vendor to come back and go to the land office together to sign the transfer. I have been chasing the real estate agent to get the vendor to come back and sign but the vendor is too busy and could not come back. The SPA has exceeded 4 months as at todate. Is there any alternative to expedite this matter.

Thank you

kruel74 said...

Akbar - A bumiputra can buy a non-bumi lot but it then becomes a bumi property and if you want to sell it to non-bumi later, it will not be as easy (you have to get consent and all) UNLESS it is a freehold property (which doesn't restrict in the first place)

Lizal - No matter how it is done, the signing of the seller and buyer of a Malay reserved land has to be done in front of a district officer (DO) or an assistant district officer (ADO) but is not confine to a the place the property is located. Check with any district officer (or you lawyer) whether a notary public or an officer in the Malaysia commission in Saudi can witness the transfer document

Anonymous said...

salam

dear kruel74

i guess my question will not be any different from a couple that have been posted here. but here it goes and i would appreciate if you can comment on it.

i bought a freehold condo and enjoyed bumi discount and therefore my unit is a bumi quota (or bumi lot??? can u please shed some lights here?).

i am in the process of selling my property to a non-bumi. the strata title has not been issued yet. i've been told that the purchaser will have to top up additional 7% to cover the bumi discount that i enjoyed. i've also been told that the process of transfer can take 8 months.

there is no 'bumi quota' restriction in my S&P and i can sell to anybody and the developer must give consent within 21 days upon receipt of application.

1) can the developer ask the purchaser to top up 7%?

2)i also read that according to latest housing act, consent from developer is no longer required for sub-sale. they only need to be informed. if this is so, can the developer ask for 7% top up and act as if consent from them is still required.

3)if the developer did not meet the conditions in the development order i.e. 30% bumi quota and paid the penalty to the state authority, are they allowed to recover the money by asking the purchaser to top up?

4) if the 30% bumi quota is achieved and there should not be any problem to get the strata title issued, is there any reason why can't i sell it to a non-bumi since it is a freehold property?

5) if the strata title has been issued with 'bumi-lot' stamped on my unit, is there any reason why i can't sell it to a non-bumi since it is a freehold property?

hope you can shed some lights here.

thanks.

kruel74 said...

Anon :

Here are the basic answer :

1)The developer can ask for the purchaser to top up the 7% discount they gave before but it may not solve the 'problem' the property being a bumi lot

2)Although consent is no longer needed, a developer is a party to the transaction so they can refuse to sign on the dotted line unless the requirement is complied

3) The purchaser is only bound by what is in the Sale & Purchase Agreement between them and the developer

4) Yes. That is true. I did it personally

5) That 'bumi-lot' stamp is the reason regardless of it being a freehold land. A freehold land still can comes with certain conditions and being a bumi-lot can be one of it

Ray Chong said...

What abt a bumi bought a property from a non-bumi in a sub sale case and now wanna sell it to a non-bumi?This property is L/H and under master title.

Can it be done?Hope to seek ur advise.

Thanks.

P/S:- when u'll be writing & releasing a book related to this topic?Can't wait to have 1..=)

kruel74 said...

Ray Chong - When a bumi buys a non-bumi lot, the quota (if any) applies to him regardless with or without title. When he/she sells it back to a non-bumi, whatever rule (then) about bumiputra ownership applies to him.

As an example, if during that time he sells it to a non-bumi and according to the record of the management (developer) they are short of 70% of the required bumi quota, they may not allow it. Usually, this is when they are applying the strata title

Ray Chong said...

En.Khairul. Thanks for ur reply.

For this case I've checked with the developer & they said the bumi quota only applied when this property 1st launched, but not for sub-sale(I'm not sure it's true or not).

Also, I've been told that buyer only need to get consent from Land Office(they sound like developer side have no problem for this transaction). Whether the ownership can be successfully transferred to a Non-Bumi or not is up to Land Office's discretion. Is this true?

Would there be any issue when come to strata title in later stage if this property successfully been transferred to a non-bumi buyer?Pls advise

At last, hope you don't mind to give me ur email & contact number so I could reach you if anything that need ur urgent professional advise.My email address is raylckw@gmail.com.

Hope to get your reply soon & Happy Holiday to u.

Thanks & Regards,
Ray Chong

Anonymous said...

Hi, im chong. Im buying subsale lease hold house which is not a bumi lot but the owner is bumi. Im waiting the land office to sign the consent. But already 4 months pass. It still no news from state authority. What should i do . Your opion is much appreciated.

Khairul Anuar Shaharudin said...

Hai Chong, as a buyer you can only wait. As it is alrady 4 months and I think you have a lawyer, you should be asking your lawyer to follow up with the seller. If the seller can't obtain consent, which usually runs indefinitely depending how many times they are will to appeal to land office to allow the sale, you have to get advice on how to cancel your SPA which usually will go back to status quo (everyone get back their property/money) but you may not get all the legal fees or disbursement you have spent

Anonymous said...

Hai mr khairul, thanks for ur reply. I already contacted the seller lawyer. The lawyer said my document pending MB to sign and will getting finalised this month end. Is it a good sign? Election is getting near, is it will affect my process? From chong.

Khairul Anuar Shaharudin said...

Chong,

You have to keep your follow up with the lawyer. They can advise you better as they have all the facts about the property and such. Usually election will not affect current property transaction, in my experience...

grt3 said...

I nd some clear procedure on doing a land transaction.
Its a leasehold land in selangor, just after 5 yrs.

Purchaser pay 25k as part of purchase. Then lawyer obtains the consent frm the state authority. Upon obtained, purchaser pays the balance sum. Lawyer do a transfer at kand office.

Is ths way corrct? Hv to pay any R P GT.

Khairul Anuar Shaharudin said...

grt3 - As you already have a lawyer and question like this have to be dealt in real life, you should ask him or her to explain the procedure and timeline.

In nutshell, you will get your money upon the transfer, not when you obtain the consent.

RPGT will not have to be paid if after you it more than 5 years but you still have to declare it. Check my earlier post on it.

Anonymous said...

Helo there,

First of all Im a bumi. Intend to buy a new development property but i have few concerns. Please enlighten me.

1. If i didn't take the bumi discount 7% does it make my unit non-bumi lot?.
2. I ask the agent regarding this concern but they mention that currently the developer only categorize based on purchaser not on unit lot. Bumi and non-bumi purchaser. Due to master-title reason.
3. So if the number 1 answer is no, i conclude that bumi purchaser dont have buying power to bought a non bumi lot on new development project?. In order developer need to hit the quota.
4. Is there a solution to this case?.

Thanks for your explanation n answers.

Khairul Anuar Shaharudin said...

Anon :

1) Not taking the 7% discount does not make it a non-bumi unit;
2) Your agent is correct;
3) Simple answer to this question is yes but it is not buying power but just about quota fulfillment as you mentioned;
4) Buy under your name, if there's no label about the property being bumi or non-bumi, sell it to whomever you want and get a good lawyer who can help you

Jobless Girl said...

Great information and now I have better idea on Malay Reserve vs. Bumiputra unit.

Jobless Girl said...

Salam En Khairul,

If the perious S&P sound as below:

"Penjual bersetuju menjual dan Pembeli pula bersetuju membeli Harta tersebut bebas dari segala penyerahhakkan, gadaian dan ikatan dengan milikan kosong tertaluk kepada terma-terma dan syarat-syarat berikut ini".

Does this statement tells that this property is non bumiputra unit?

What are the commonly words use to describe that this unit is bumi lot or not bumi lot?

What is kepentingan sekatan?

Hope my question does not overwhelm you.

Khairul Anuar Shaharudin said...

Jobless girl,

That is not a statement or clause about the property being bumiputra or non-bumiputra unit. Usually it will state that 'This property can only be sold to bumiputra purchaser' or something in that gist.

It is 'sekatan kepentingan' and it is whatever limitation a property has on it like 'Harta Inj Hanya Boleh diPindahmilik Dengan Kebenaran Pihak Berkuasa Negeri' among others

Jennie said...

Hi,

I would like to know, in the case that 30% of the bumi lot already set, what if a bumi want to buy a non-bumi lot, is the developer still need to give them the discount?

Khairul Anuar Shaharudin said...

Jennie,

As long as you have fulfilled the quota, you don't need to give any discount to any sale to bumiputra anymore. Bumiputra can always request to pay full price but it will still be a bumiputra lot

chong said...

Hi mr khairul,

Finally land office had signed the consent. Transfer bumi to nonbumi. since last year august until now. It is long waiting process.
frm chong.

Khairul Anuar Shaharudin said...

Good to know that Chong and this is not the longest I know about. Some has to wait for 2 years

ahong said...

Assalamualaikum,

I need some advice if possible. I am a Chinese (non Bumi)married to a Malay. Can I buy Bumi lot? If cant is it possible if I buy it with two owner me and my wife?

Thanks in advance.

_Chee Hong

Khairul Anuar Shaharudin said...

Ahong,

I have Chinese Muslim clients who own bumiputra lots either with their spouses or by him/herself. It depends on your supporting documents. An Amanah Saham Bumiputra book will help a lot

stitch said...

Dear Lawyer,
I recently put a deposit down for an apartment unit Freehold. It is a subsale. After paying the deposit i realized it was a bumi lot. I am not a bumi.. I called the developer and some say that maybe they can do a double transfer, or maybe it will take time.. maybe this maybe that.. They did say that no matter what, the developer must sell it to the bumi guy first before it can be transfer to me by the bumi guy. I called a lawyer that I was going to engaged, all he said was, it can be done if the developer is willing to do a double transfer or otherwise it will just take time. From the phone conversation with them, it doesn't feel like the developer will be interested in doing a double transfer for my case.

I am not very sure where I will be getting along in this and since the strata title isn't out yet..
I am forsee- ing that it will be a very long wait for me as i have to wait for the strata title to be be handed out before obtaining the transferred unit? And if they definitely have to transfer it to a bumi first, what are the chances that the current bumi seller now might take off or disappear after receiving money from me and my bank? would i still not need him around for the developer to give him the strata title first?


How complicated can this get? And as per such, I cannot do any renovations and etc. until the strata title is sorted out right?

Please help. I'm at lost.

Khairul Anuar Shaharudin said...

Stitch,

You have the answers and the advisors.

One more option is to cancel the transaction if you think it is for the best

Anonymous said...

Hi Khairul,

Im Wong and would like to ask your opinion.

I had just bought an unit of flat from public auction. Subsequent to the auction, I received a letter of confirmation from the developer stating that the lot is a bumiputra lot and thus, they do not consent to the transfer.

As I understand, due to new amendment in the Housing Development Act, we are no longer require to obtain consent from the developer. Thus,
1) Can I proceed to buy the property without the consent of the developer?
2) Can the developer refuse my transfer and subsequently when the strata title is issued, does the developer has the right to not include my name in the transfer since they do not consent to the transfer?

Many thanks.

Anonymous said...

I had just bought an unit of flat from public auction. Subsequent to the auction, I received a letter of confirmation from the developer stating that the lot is a bumiputra lot and thus, they do not consent to the transfer. As I understand, due to new amendment in the Housing Development Act, we are no longer require to obtain consent from the developer. Thus,
1) Can I proceed to buy the property without the consent of the developer?
2) Can the developer refuse my transfer and subsequently when the strata title is issued, does the developer has the right to not include my name in the transfer since they do not consent to the transfer?

Khairul Anuar Shaharudin said...

Wong,

Yes correct, you don't need the developer's consent to transfer a strata property anymore. You just need to inform them and they will tell you how much you still owe them in maintenance and such.

However, you are an auction case. It is not covered under the normal housing law. Get a lawyer to advice you.

As for when strata title is issued, this is where you may be hit with a snag. You will have to get the land office consent.

As an investor, recover back your investment by selling it off to any bumiputra buyer to be safe.

YeetKuang said...

Hi,

I just bought a double storey freehold house in Cheras, Selangor.

When I paid the earnest deposit and signed the purchase agreement, the owner had not signed the purchase agreement yet.

On the next day the agent sent me the purchase agreement after signed by owner, I found that the owner is a Malay.

I questioned the agent, but the agent insisted the unit is non-bumi unit, he said he had confirmed with developer (the unit is still under master title).

My questions:
1) Will my purchase be processed by non-bumi unit procedures? or following bumi unit procedures?

2) Do I have right to cancel the purchase and get full refund of 3% earnest deposit without penalty? FYI I have just paid the 3% earnest deposit 2 days ago.

Thank you so much.

Khairul Anuar Shaharudin said...

Yeet Kuang,

There's no bumiputra or non-bumiputra process. Especially as the property you are buying is a freehold. It can be transferred without the need for consent from land office. To get a peace of ind, go check with the developer yourself.

Read the form that you signed and see any terms about penalty. If you think you were misrepresented by the agent that's your way out

YeetKuang said...

Thanks for your reply.

The purchase agreement does mention that:

"3% as earnest money upon acceptance of the offer which shall be forfeited as compensation should I / We subsequently cancel, withdraw, abort or fail to proceed further in this transaction"

If I don't want to check with developer, I don't want to take risk in future when I resell the unit, can I cancel and get full refund?

How to be considered as misrepresented by agent? I have consulted a lawyer, she said the deposit would be forfeited, since the property is a freehold unit, there is no problem whether bumi or non-bumi lot, so the agent has no obligation to tell me if the seller is Malay. Is what she said true?

Many thanks.

Khairul Anuar Shaharudin said...

Yeet Kuang,

She is in a way correct. A seller being a bumi or not is not a misrepresentation as there's no law to divulge that information in a property transaction except that as transferring property in Malaysia between bumi and non-bumi is a problem if it is a leasehold, it is an issue. As it is a freehold, there's no issue as consent from state authority is not needed

Anonymous said...

Hi, Encik Khairul.

I would like to know that is your answer for the above question apply for every state OR just apply on Selangor state?

If a bumi lot sell to a non bumi on subsale, there will need to top up the discount money to the state land office? Is this confirm? I have consult 1 lawyer film, but she didnt mention about this to me. I am now in dilemma to buy the bumi property or not.

Your answer will be my guidance. Thanks

Khairul Anuar Shaharudin said...

Dear anonymous,

The answer to the questions above will be true for Selangor and Kuala Lumpur but Selangor land offices nowadays seems to be stricter.

The bumi discount is to be topped up to the developer and not to the land office. If the property is a strata, the transfer is still under the list retain by the developer until strata title is issued for the property. If the property is landed and the consent is with the state, there is no issue about the transfer if the land office allows it.

There may be complication which is mostly the timeframe for the consent to transfer to be granted but I have so many successful transfer as many as those which has to go through the appeal process

Anonymous said...

Hi En. Khairul,

My name is Tee. I need your advise. I intend to buy an MCL titled, landed property in Melaka. My dad is a Chinese from Perak and my mom is a Malay from Sabah. I am borned in Sabah, which makes me a Bumiputera. But now, we reside in Johor and owning a property in Johor, Bumi lot.

However, I got contradicting opinion from bankers and agent in determining whether I or my mom is a Malay or not (this lead to whether we could buy the property or not). I tried to refer to your earlier post on the definition of Malay...and I thought, it fits well with me, and I always think I am a malay anyway. I am a Muslim, who speaks Malay and lives with Malay custom since I was born... and I was born in Malaysia. I couldn’t even speak Chinese!

However, the agent told me that I couldn’t buy the property under my own name alone, since I am a "kacukan" ; my dad being the chinese) makes me a non-malay? unless (maybe) I could include my mom in the S&P agreement? (but, then again... a banker told me that....my mom, a malay from Sabah, does not make her a malay in 'Melaka'?) suddenly now, I feel like we are divided and not "federated".

And another problem is.. even if we could put my mom's name in the S&P, the bank will not grant her a housing loan, since she is not working? And even if my mom is entitled to buy the MCL property under her name, can my name be included in the S&P/ sharing and owning the property? (because I am the one who has the income and therefore, possibly get a housing loan for it) but it will not make any sense my name is not in the S&P...

The most important things at the end of the day, is the agreement of DO for the transfer right? Is there a way I could convince the DO their definition of me being a malay? or.. could you possibly shed some lights on this please?

Bryan said...

Hi Khairul

Your articles are very useful and very appreciate your sharing.

I had recently bought a leasehold property in Kuala Lumpur from a bumi.

The strata title did not mentioned it is Malay reserved nor bumi lot and my lawyer had conducted the land search and confirmed.

I sign the SPA on end Oct and loan agreement on mid Nov and had paid the legal fees and stamp duty.

However, the seller's lawyer only sent in the application of transfer to land office in end Nov (which should be within 14 days from date of SPA). The deadline given is 3 months from date of SPA which I hv right to call off the SPA if consent not able to obtain by then.

My questions are: -
1. If after 3 months, consent still not able to obtain, if I call off the SPA, will I get my stamp duty back (for both SPA and loan agreement)

2. How much normally the lawyer will charge if the SPA is call off?

3. If both of us (seller and buyer) willing to extend the time for the consent, what is the duration for extension is reasonable?

4. Heard that KL land office is more efficient, is that true?

Thanks and have a nice day.

Bryan

Khairul Anuar Shaharudin said...

The people you ask advice from are not the best persons you should ask. My advice go have a chat with the ADO who is in charge of of this matter at the land office in charge of your land. I have taken clients who were actually was a Singapore citizen when he was born, born in Germany and only get his full Malaysia citizenship when he was only 10 years old.

As I said, we had a discussion with the KL ADO in charge of Malay reserved land and she agrees that he is Malay. I am not that well-conversed with MCL land so I will suggest you are the expert and they are always at the source, the land office

Khairul Anuar Shaharudin said...

Bryan,

1) You have only paid the stamp duty to the lawyer and not the stamp office. You should get whole refund if you call it off

2) Half of the total legal fees. It is in the Legal Profession Act 1974

3) Can't really say how long specifically. I had clients extending their timeframe up to 1 year and in my own experience, I extended mine up to one year from original dateline. It depends on your own willingness to wait.

4) KL land office was once very efficient but from what most of runners told me Selangor land offices are up there in being efficient too. They revamp their operation since 2010 due to a research/survey about what they need to improve. But, when it comes to Malay reserved/bumi lot, it is true, KL is more lenient

Anonymous said...

can bumiputra buy malay reserve?
can chinese muslim @ india muslim buy malay reserve. Because in Melaka most house is MCL.

Bruce Tan said...

Hi Khairul,

I really enjoyed your blog as it is highly informative.

i would like to seek your advice in regards something along the lines in this discussion.

I am looking at this particular property which is freehold and strata title ALREADY issued to the residents of the apartment. I was told that there are no issues for a non-bumi to purchase a bumi unit, since the strata title is already out.

Is this true, and if so are there any other things to consider or ask before I proceed with this transaction?

Thank you

Regards
Bruce

Khairul Anuar Shaharudin said...

Bruce,

If your information is correct then you have nothing to worry about. All the information in the strata title are the information you need.

confused said...

dear lawyer,

i am thinking of buying a sub sale condo in kl (6 years old, Free Hold). the current owner is a bumiputera .

the condo has no bumi lots but has bumi quota.

The malay buyer claims did not get the 7% discount(but he himself not sure) and also not sure if this is a bumi lot or a bumi quota unit. There is nothing stated in the SnP about the bumi status.
developer has applied for the strata titles with the state government and in the process of getting it (strata title will be released early Jan 2015).
the developer says there is no restriction in master title.
The developer says that there is no problem with the transaction but does not want to give in black and white saying that this is not a bumi quota unit or a bumi lot. Developer saying that it is not the procedure , and they will give the usual confirmation that is normally given (detail of property,current owner,any balance and etc.) Is this considered consent from developer? What else would the consent/ confirmation from developer has? Will the consent clearly state that there is no objection for subsale to non bumi and state that this isn’t a bumi unit.?

Is the consent from developer alone enough? what should the consent consist of?
Do u think it’s safe to proceed if developer just give the usual confirmation/consent? (without stating that this unit is not a bumi lot).
Do I have to get state consent if this deals goes on?

very confused....

Khairul Anuar Shaharudin said...

Dear confused,

You are confused because the responsibility to get the consent from the developer AND the state, if need be, is the responsibility for the SELLER.

From the story you stated here the developer is correct as they only do give consent when there's a request from the Seller.

If a title is out, if the property is freehold, the property can be transferred without getting the consent from the land office.

If there is no mention of bumiputra quota anywhere, there is no need to get such consent from either the developer or the land office

confused said...

Dear lawyer/mr khairul,

Thank you for the prompt reply. Appreciate it. If u are having a road show or talk on educating first time buyers or etc., I would definitely join.

Is my understanding below correct?
(A)Strata title not released or is in the process (for a freehold condo in KL)
If the condo which is a free hold and still under master title (even though the proses for application for strata title has already been submitted by developer) can be sold from bumi to non bumi given:
a) The developer has given consent for the sale
b) There is no restriction in the master title
c) It is not a bumi lot/bumi quota lot
And Finally The memorandum of transfer can be signed once strata title is issued later,given the developer has consented for the sale (directly transfer from developers name to the latest/current owner).
Now Lets say that the current unit is one of the bumi quota unit to full fill the developers requirement of bumi quota as in the Development’s order, can the developer still consent for the sale? Are the developers at fault by doing so OR are they allowed to do so since they have already applied for the strata title?
Does this mean that a bumiputera owned freehold condo automatically becomes a bumi lot and this would limit the buying and selling power?
I heard the agent talking about double transfer? What does this mean and which context does this apply to?
Tq
Not very confused as of now

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