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SPA With Developer - Schedule G Agreement: Housing Development (Control and Licensing) Regulations 1989

This document summarizes the process for purchasing residential property directly from a developer using a Schedule G agreement under Malaysian law. Key steps include: 1) The developer's solicitor prepares the Schedule G agreement and ensures all required details are included. 2) The agreement is executed by both the purchaser and developer. 3) Once the separate title is issued, the Memorandum of Transfer is prepared to transfer ownership to the purchaser. 4) The MOT must then be adjudicated to determine the appropriate stamp duty, signed by both parties, and stamped before registration.

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187 views31 pages

SPA With Developer - Schedule G Agreement: Housing Development (Control and Licensing) Regulations 1989

This document summarizes the process for purchasing residential property directly from a developer using a Schedule G agreement under Malaysian law. Key steps include: 1) The developer's solicitor prepares the Schedule G agreement and ensures all required details are included. 2) The agreement is executed by both the purchaser and developer. 3) Once the separate title is issued, the Memorandum of Transfer is prepared to transfer ownership to the purchaser. 4) The MOT must then be adjudicated to determine the appropriate stamp duty, signed by both parties, and stamped before registration.

Uploaded by

Emcee Aaron
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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SPA with Developer -

Schedule G Agreement
Housing Development (Control and
Licensing) Regulations 1989
SPA for buying property from a developer
• regulated under HDR 1989.
• property consists of land & building - Schedule G
• property consists of parcel ie a unit in a
subdivided building - Schedule H
• BTS, land & building - Schedule I
• BTS, parcel in a subdivided building - Schedule J
What is residential property?
* Schedules G, H, I or J - only for residential
property (housing accomodation)
•s3 of HDR
•includes buildings that are part commercial and
part residential like SOHO
•also when a property is declared housing
accomodation by the housing minister
• Can a lawyer/developer amend the terms of the
agreements under Schedule G, H, I, J?
• Syarikat Chang Cheng (M) S/B v Pembangunan
Orkid Desa S/B
Commercial property
• what about the buying & selling of commercial
property?
• not prescribed by statute even if buying it
directly from developer.
Solicitor acting for the developer not to act
for P
• when developers advertise that there is no legal
fee involved in buying their housing unit - most
purchasers happily sign SPA with developers
without engaging a lawyer.
• LPA, SRO & Malaysian BC rulings - solicitors acting
for the developer have to explain to the P that they
cannot act for the P and should inform them they
have the right to appoint their own solicitor to act
for them.
Solicitor acting for Developer
• land search
• winding-up search
Preparing Schedule G
• D's sol has to fill in the particulars required in the
blanks in the preamble of Schedule G
• Particulars -
• (a) name of the developer and its co. reg. no.
• (b) developer's licence no.
• (c) registered address of the developer
• (d) name of the P, ic no and address
• (e) name and relevant particulars of the RP of the
master/individual title
• (f) tenure of the land (if land is leasehold)
• (g) expiry date of the leasehold land
• (h) particulars of the master title or separate title
(if issued)
• (i) area of the master title
• (j) name and registered office of the bridging
financier (if any)
• (k) name of the housing project
• (l) the advertising and sale permit number of D
• (m) lot number of the property
• (n) area of the property
• (o) the description of the building to be erected
on the lot
• (p) the 'type' description as given by the D
• Other particulars to check are:

• Clause 3: the purchase price of the property


• Clause 12(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
• Third schedule: Schedule payments of the PP
Execution of Schedule G
• The D's sol prepare 4 copies of Schedule G and
the copies are respectively stamped 'Original',
'Duplicate', 'Copy' and 'Copy'.
• If the P doesn't have a sol, the D's sol will attend
the execution of the agreement for both P & D.
• If the P has own sol, the P's sol should explain
the salient clauses to the P before signing.
Salients clauses in the Schedule G
• clause 5 - loan
• clause 9 - interest on late payments
• cause 10 - default by P
• clause 19 - maintenance of services
• clause 23 - time for delivery of vacant possession
• clause 26 - defect liability period
Stamping of Schedule G
• each copy has to be stamped - RM10 stamp duty
• Form PDS 1
P's sol's undertaking to end-financier
• once loan approved - P's sol will receive a letter
from the end-financier's sol to give a LU
• LU - sol to undertake to deliver to them a duly
executed, adjudicated & stamped MOT when
the title is issued.
Sample of LU
Procedure when title is issued
• Registering/transferring the title into P's name -
perfecting the title
• to prepare MOT/Form14A
Preparing the MOT
• to effect the registration of transfer of
ownership where title is available.
• Clause 11 of schedule G - developer must within
21 days of the separate title being issued,
execute the MOT in favour of the P.
• PROVIDED that the P is not in arrears of the
instalment payments.
How to prepare & execute the MOT
• Note: signatures and any writing on the MOT
(includes any marking) must be done in
permanent black ink pen - Tenth schedule para
11 NLC.
• 1) get the P to sign the MOT
• 2) obtain a photocopy of the P's ic & collect the
legal fees
Sample of MOT
If the P is a company
• get the following documents:
• 1) a copy of the board resolution of the co to buy
the property;
• 2) a copy if the M&A;
• 3) a copy of Form 24; and
• 4) a copy of Form 49.
• Note: the company has to execute the MOT by
common seal - s210(3)
Developer to execute the MOT
• once the MOT being signed by the P, send the
MOT to the developer for execution.
• the developer, being a company, will execute
the MOT by common seal in the presence of 2
signatories who will sign their names in
permanent black ink.
Documents from the developer
• the developer should send the MOT back to the
P's sol, duly executed together with:
• (1) the original IDT
• (2) the quit rent receipt for the current year
• (3) Form 49 of the developer company
• (4) letter issued from the SA for consent to
transfer the property (if the title is subject to
restriction)
Adjudication of MOT/Form 14A
• sending MOT for adjudication is a process where
the government authorities assess the market
value of the property so that the appropriate
stamp duty ad valorem can be paid.
• this can be done manually at the stamp office or
online.
Documents for manual adjudication
• 1)original Form 14A;
• 2) one copy of PDS 15;
• 3) one copy of the SPA;
• 4) one copy of the IDT.
Documents for online adjudication
• scanned documents;
• 1) Form 14A;
• 2) copy of IDT;
• 3) pages of SPA that shows, the names of the
parties, the date, the selling price, schedule of
payments, plan/layout, signing page;
• 4) other relevant documents.
Payment of stamp duty over the counter
• pay the stamp duty as stated in the Notice of
Assessment (NOA) to the Collector of Stamp
Duty over the counter at the Stamp Office within
14 days of the date of NOA failing which a
penalty is payable in addition to the amount of
the said duty payable.
• payment: online or by Clients' A/c cheque or
cash if less than RM500.
Stamp certificate
• once the stamp duty ad valorem is paid online,
one could print out the stamp certificate.
• this certificate must be attached to the MOT as
evidence that full stamp duty has been paid.
• the land office has to sight this certificate before
they accept the MOT for registration.
Endorsement of Stamp Duty
• Note: when the stamp duty is paid over the
counter and the MOT is franked with the stamp
ad valorem, the MOT still has to be endorsed by
the appropriate stamp duty officer that the full
stamp duty ad valorem has been paid.
• this may take up to 3 days.
Forwarding docs to end-financier's sol
• where the P has obtained a loan, the end-
financier will require the charge to be registered
over the property as a security for the loan.
• Upon the stamp duty being paid on the MOT,
the P's sol should fwd to the solicitor acting for
the P's end-financier the following docs:
Forwarding docs to end-financier's sol
• 1) the MOT duly executed and stamped with duty
ad valorem;
• 2) the original IDT received from developer;
• 3) the receipt for the quit rent for the current year;
• 4) a copy of the P's ic;
• 5) letter from SA consenting to the transfer;
• 6) a cheque for the sum required for the
registration fee for the transfer.

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