It’s been a long long time since my last jog (well okay, walk…) at the Likas Sport Complex… and what a pleasant surprise it was to found that they’ve extended the jogging track… these are photos snapped from the new “site”… with my iPod using LemeLemeHD.
... I lie, I brag, I boast naturally... so please don't get serious about whatever I say or write :)
Saturday, April 16, 2011
Thursday, April 14, 2011
I wrote the following legal opinion in reply to a banker client’s letter…
In terms of (1): legality
Please be advised that the requirement by the Government for the Developer to allot certain quota of the developed properties to bumiputra is a Government policy aimed at securing property ownership by the bumiputras. Such policy requires that any property labeled as “bumi lot” be sold by the Developer to a bumiputra purchaser. Subsequently, when the individual title of the “bumi lot” is issued, it usually carries a term/condition that stipulates that the transfer of the title to a non-bumiputra is prohibited within the period of five (5) years unless permission has been obtained from the Government.
Such Government policy, however, does not affect legality of documents. As such, the 2nd Sale and Purchase Agreement and the Deed of Assignment entered between the Borrower and the Vendor (although entered within the five (5) years limitation) remain legal and enforceable. This follows that the Deed of Assignment and Power of Attorney to be entered between the Borrower and your Bank would also be legal and enforceable.
As long as the original document of title to the Property has yet to be issued, your Bank’s interest would be fully protected by virtue of the Facilities Agreement, Deed of Assignment and Power of Attorney entered between your Bank and the Borrower (“the said Loan Documents”). Albeit, upon default of payment by the Borrower followed by a foreclosure of the Property, your Bank may only auction the Property as a “bumi lot”.
In terms (2): transfer and charge
We have spoke to the Land Officer in Central Land Office, Mr Kevin Joibi, on 07.04.2011 concerning this matter. Mr Kevin stated that if the 2nd Purchaser had bought the “bumi lot” from the 1st Purchaser after the 1st Purchaser has bought the “bumi lot” from the Developer for more than five (5) years, despite the fact that the individual title has only been issued for less than five (5) years, the Land Office would accept the registration of transfer of the “bumi lot” to a non-bumiputra provided that the 1st Sale and Purchase Agreement and the 2nd Sale and Purchase Agreement be shown to the Land Office revealing the fact that the 1st Purchaser has sold the Property (without title then) to the 2nd Purchaser after the lapse of five (5) years.
Regrettably in our case, the 1st Sale and Purchase Agreement is dated 18.12.2000 while the 2nd Sale and Purchase Agreement is dated 13.10.2004 which means the 1st Purchaser has sold the Property to a non‑bumiputra within the five (5) years limitation.
Mr Kevin has confirmed to us verbally that under such circumstance, a transfer could still be accepted by the Land Office subject to the relevant approval being obtained and a land premium being paid.
However, we are unable to advise your Bank how much the land premium would be. In the event the Borrower could not obtain the relevant approval or pay the required premium for the transfer, it would not be possible to register your Bank’s charge against the individual title.
Mitigation of Risk
Upon issuance of the document of title but pending registration of the title to the Borrower’s name, your Bank’s interest would still be protected under the said Loan Documents as the status of the Property will remain as a Property without title although it would no longer be possible for the lodgment of a caveat against the Master Title (which has been surrendered for subdivision) to further secure your Bank’s interest.
Saturday, April 9, 2011
Spent RM89 for a new casing for my ipod…
bought it from Karam-mun-sink’s Mac Borneo
They finally have a few choices of cases for ipod now…
The last I went, they have only got one ipod casing for sale… and it was a dark, black masculine casing that I didn’t like…
This time, I asked if there’s any transparent casing and the sales girl showed this soft casing to me… wow, I love it!
And came with Screen Protector too (which if bought separately cost RM59! Apple pricing… go figure!)
Also bought an AC charger and a USB car charger from the shop next to Mac Borneo… well of course at a much much lower price!
Yay… more music with more style… it’s been a good day!
Shopping always make me feel good… :)
Sunday, April 3, 2011
Saturday, April 2, 2011
We have a problem at the office.
We have a customer who wish to refinance her loan from one bank to another. And we are acting for this other bank. During our preparation for the loan release, we realised that the customer who is a pure chinese has actually bought a property tagged as a bumi lot!
Now, if she has bought it from the Developer directly, the issue might not be so complicated, problem is she has bought the property under a subsale from a bumiputra! And the most curious thing is that her previous financier approved her loan!
How did the sale AND the loan went through is not for us to know as it was done by another firm and the lawyer in charge then apparently is no longer with that firm.
For one, the Developer endorsed their consent for the subsale of the bumi lot from a bumi to a non bumi! When enquired with them, they simply say, well they did “point out” to the solicitors handling the subsale that the property is a bumi lot… Is that all that is to the Developer? They will consent as long as the administration fees for the consent is paid? Developer will not be responsible if subsequently when the individual title to the property is issued it can’t be transferred to the sub-purchaser who is a non bumi?
As solicitors for a finance institution, our concern is that if subsidiary title is issued during the term of loan, land office would not allow the transfer of the subtitle with a bumi lot restriction endorsed thereon to the supurchaser (the customer) directly. If the customer can’t get her title to the property then our client, the bank’s charge cannot be lodged as well!
The other firm that handled the subsale brushed off the matter lightly saying in their letter that they have spoken to one land office officer who told them that bumi lot title only means that the property will be restricted from sale to non bumi for a period of 5 years, and that 5 years runs from the date of the Sale and Purchase Agreement (as in this case, when the customer bought the bumi lot, the bumiputra first owner has owned the property above 5 years).
BUT, even if the Developer had signed the Memorandum of Transfer to the sub-purchaser in escrow… technically, I would think, if the sub title is endorsed with a restriction to a bumi owner, it’s not possible to effect the registration of the direct transfer of the subsidiary title to the sub-purchaser who is not a bumiputra!
Because the title would specifically states that the issued title is a bumi lot and that “the owner” cannot transfer the title to a non bumiputra within five years! Ie, the title already “assumes” the first owner to be a bumiputra!
I vaguely remember seeing a bumi lot title not long ago but I can’t remember which file of mine… I will try to dig out that file and scan the relevant text here…
…. this article is to be continued …