Legalities FAQ
  • Who is the registered proprietor of the property.

    Whether the person alleging himself/herself/itself is the registered proprietor of the property. If the document of title shows a different proprietor, queries should be made to determine the status of parties.

    In some situations properties will still be under the developer’s name. This happens when the individual title has not been issued by the relevant authority. In cases as such the developer need to be contacted to determine whether they are agreeable for a direct transfer. If the answer is yes, then the Memorandum of Transfer must be signed by the developer in favour of the new Purchaser. Otherwise ,there will a double transfer.

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  • Whether the details of the property provided by the Vendor/Seller corresponds with the records of land registry

    The intended Purchaser need to conduct a land search at the land registry to confirm the property particulars provided by the Vendor/Seller. A search at the local council is also advisable to determine the assessment address and the full property description.
     

    The search at the land registry would also reveal if the property is encumbered with a charge and/or caveat.
     

    Encumbrance means any burden or condition or state of title which affects the owner’s or intended purchaser’s title to the property including the right to deal with the property.
     

    If the property is charged to a financial institution the intended Purchaser is advised to request from the Vendor/Seller the details of the loan amount outstanding. This is to avoid situations whereby the outstanding loan amount is higher than the purchase price.
     

    The search at the land registry would also reveal the express conditions of the property such as :-
     

    “Tanah yang terkandung dalam hakmilik ini hendaklah digunakan sebagai tapak satu bangunan untuk kediaman sahaja”


    Therefore the property shall only be used as a residential property.

    The search at the land registry would also reveal the expressed or implied restriction-in-interest such as
     

    1. 1. the property cannot be transferred or charged  or leased without the state authority consent; or
    2. 2. the property shall only be transferred to a bumiputra


    If the property is a low/ medium cost property the consent of the Jabatan Perumahan has also be obtained. The approval is subject to terms and conditions as set by the Jabatan Perumahan. A person is only allowed to purchase a low /medium cost property once.

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  • Whether the Intended Purchaser qualifies for a loan to finance the purchase.

    Intended Purchasers are advised to submit the relevant documents such as pay slips, EPF statements and EA forms to determine whether he/she/it qualifies for a loan from the financial institution to finance the purchase of the property. It is advisable to apply for a loan before the Sale & Purchase Agreements are signed to avoid forfeiture of deposit in the event the sale could not be concluded within the completion period.

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  • The completion period of the sale

    The term as to the completion period of the sale is an essential term of a Sale & Purchase Agreement.
     

    Normally completion period of a sale & purchase transaction would be three(3) months and an extension of one(1) month subject to payment of interest.
    The rate of interest would depend on the agreement of both parties. Normally the rate of interest would be 6% or 8% per annum calculated on daily basis.
     

    In the event the sale is not concluded within the completion period ie after four(4) months the Vendor/Seller can terminate the sale and the following will take place:-
     

    (a) the Deposit shall be absolutely forfeited by the Vendor/Seller as agreed liquidated damages but all other payments towards account of the Purchase Price shall be refunded to the Purchaser without any interest;
     

    (b) upon such refund, if any, the Purchaser shall simultaneously cause the Purchaser’s Solicitors to return the Memorandum of Transfer together with the said Documents to the Vendor/Seller, if the same shall have been released to the Purchaser’s Solicitors; and
     

    (c) thereafter neither party shall have any further claim against the other on any matter in respect of or arising out of the Agreement and the Vendor/Seller shall be at liberty to resell or deal with the Property as he/she /it sees fit without having to account to the Purchaser for any profit made on such re-sale.

     

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  • Whether there is any lease or tenancy in the property

    The Intended Purchaser has to inquire the details of lease or tenancy that exist in the property.
     

    The search at land registry would only reveal if there is lease on the property but not a tenancy which is exempt from registration.
     

    If there is a lease or tenancy Intended Purchasers should have a look at the Lease or Tenancy Agreement to know the terms of the agreement.
     

    Intended purchasers are advised to get their solicitors advice before proceeding with the sale.

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  • Whether the sale of the property is inclusive with the fixtures and furniture in the property.

    If the property is a building either residential or commercial the Intended Purchaser has to ensure whether the fixtures and furniture in the property is also inclusive in the sale.
     

    If the answer is yes, then both parties have to agree on the list of fixtures and furniture which will be part of the Sale & Purchase Agreement.
     

    Before the balance purchase price is paid to the Vendor/Seller it is advisable that both parties conduct a site visit at the property to ensure the agreed fixtures and furniture are at the property.

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  • Payment of outgoings of the property.

    Payments of outgoings such as quit rent, rates, assessments and all other utility charges for water, electricity, telephone and sewerage including any payments to Indah Water Konsortium payable in respect of the Property shall be apportioned between the parties  as at the date of delivery of vacant possession of the Property to the Purchaser by the Vendor/Seller PROVIDED ALWAYS that the Vendor/Seller shall indemnify the Purchaser against any loss or penalty which may be imposed by the relevant authority in respect of  any late or non-payment of such aforesaid payments for the period prior to the date of delivery of vacant possession of the Property to the Purchaser.

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  • Default by the Vendor/Seller

    If the Vendor/Seller shall be in breach of obligations under the Sale & Purchase Agreement or wilfully refuses to complete the Agreement the Purchaser shall be entitled at his option either:-
     

    (a) to take such action as may be available to the Purchaser at law to enforce specific performance of the Agreement and to seek damages suffered by the Purchaser; or
     

    (b) to terminate the Agreement whereupon the Vendor/Seller shall:
     

    (i) within seven (7) days of receipt of the notice of termination refund to the Purchaser all monies including the Deposit and any amount paid by the Purchaser as part of the Purchase Price together with a sum equivalent to the Deposit as agreed liquidated damages.
     

    (ii) Thereafter the Agreement shall be treated as terminated and neither party shall have any further claims actions or proceedings against the other in respect of or arising out of the Agreement save and except for any antecedent breach of the Agreement.


    The Purchaser’s Solicitors shall forthwith withdraw the Memorandum of Transfer from the stamp office for the purpose of cancellation and return the same to the Vendor.

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Key Executive

Our Managing Director, Mr. Shanmughananthan, is a Universiti Malaya accredited auctioneer with 10 years of Real Estate experience behind him.

He is a man who is restless in the quest of knowledge in tomorrow’s technology and is the mastermind behind Srishanbid.com. He graduated with a bachelor’s degree in Accountancy from Universiti Putra Malaysia in 1999 and embarked onto a career as a real estate agent and went on to become a successful auctioneer.

It is here that he realized that the real estate auction in Malaysia is terribly misinterpreted by the public, with the addition of numerous loop holes for syndicates who put their manipulation skills at play. Fired up by the will to educate and help the public, he then initiated a research into taking the real estate bidding arena to the next level.

After a five year long research, Srishanbid.com was established in 2010. Since then, Srishanbid.com, with the leadership of Mr. Shanmughananthan, has successfully organized many Real Estate Open Bids event.