CONVEYANCING PRACTICE UCY4612

Multimedia University, Tri 1, 2023/2024

TUTORIAL 2
Question 1
Developer – Sunshine Developers S/B
Property- freehold with subdivided title issued i.e. IDT
- Encumbrances- bridging loan RM500,000/-
- Individual subdivided lot with residential building on it
- Bungalow, Melaka Raya.
Purchaser – Aussie
Price – RM3,500,000/-
- Pays 10 % deposit
- Applies for 60% loan to finance balance of purchase price
Based on the above, draft and present a virtual Role Play (advisable 2 groups to work together):-
1. An interview between the Purchaser and his Solicitor explaining the process of the sale and
purchase.
2. Prepare SPA & transfer documents – SPA, Form14 A
3. An interview with the Purchaser’s Bank’s Solicitors and the Purchaser to explain the loan
process.
4. Draft Letters of enquiry from the Purchaser’s Bank’s Solicitors and Letters of undertakings
from the Purchaser’s Solicitors, Vendor and Chargee Bank for the loan transaction.
5. Application for caveat & withdrawal of caveat
6. Loan documents – LO, Facility Agreement, 16A, 16N
7. List the necessary documents to register the transfer and charge

* Special acknowledgement to Dr. Gita Radhakrishna, the previous lecturer for this Course, for the useful earlier information for
this Course. The current version has been revised by Mr. HS Wong.

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CONVEYANCING PRACTICE UCY4612
Multimedia University, Tri 1, 2023/2024

Question 2
Elly is interested in purchase a double storey terrace house held under HSD 1111, Lot 222, Mukim
and District of Klang, Selangor Darul Ehsan from Eminent Development Sdn. Bhd., a housing
developer. The said project is located at Maju Jaya, Klang and the purchase price is RM600,000-00.
Elly signed the sale and purchase agreement on 3 January 2016 and the developer handed over
vacant possession of the said property on 2 September 2018.
Recently Elly discovered that cracks have developed on the wall in the living hall and at the master
bedroom. She requested the developer to rectify and repair the cracks and other defects, but the
developer did not respond to her request. At the end, Elly spent RM25,000-00 to repair the defects.
Advise Elly, on her rights under the Sale and Purchase Agreement.

Question 3
Instruction: Read the extract from a sale and purchase agreement given below.

SAMPLE
SCHEDULE G
HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966
HOUSING DEVELOPMENT (CONTROL AND LICENSING) REGULATIONS 1989
(Subregulation 11(1))

SALE AND PURCHASE AGREEMENT (LAND AND BUILDING) Stamp

RM10-
AN AGREEMENT made this 1st day of April , 2017 00

BETWEEN ABC VISTA SDN. BHD. (Company No. 123456-Q), a company incorporated in
Malaysia and duly licensed under the Housing Development (Control and Licensing) Act 1966
(License No.: 123456-P) with its registered office at No. 3, Jalan Sungai Buaya, 75450 Ayer Keroh,
Melaka (hereinafter called “the Developer”) of the *one/first part AND MIKI MONTEGI
(Japanese Passport No. J987654) of 150-2345 Tokyo-to, Shibuya-ku, Hommachi 2 choume, 4-7,
Sunny Mansion 203. (hereinafter called “the Purchaser”) of the *other/second part AND DEF
ANGKASA SDN. BHD. (Company No. 789456-S), a company incorporated in Malaysia with its
registered office at No. 19th Floor, Wisma Cekap, Jalan Cekap, 75000 Melaka (hereinafter called
“the Proprietor”) of the third part.

Preamble

WHEREAS the *Proprietor/Developer is the registered proprietor and beneficial owner of all that
*freehold land/leasehold land of ........................ years expiring on .......................... held under
Geran (description of title) and No. of Title 54321 *Lot No./L.O. No. 555 Section 2 in the
* Special acknowledgement to Dr. Gita Radhakrishna, the previous lecturer for this Course, for the useful earlier information for
this Course. The current version has been revised by Mr. HS Wong.

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CONVEYANCING PRACTICE UCY4612
Multimedia University, Tri 1, 2023/2024

*Town/Village/Mukim Melaka Tengah, District of Melaka Tengah, State of Melaka in an area

measuring approximately 5.5 hectares/square metres (hereinafter referred to as “the said Land”);

AND WHEREAS the *Proprietor/Developer is the registered proprietor and beneficial owner of all
that piece of *freehold land/leasehold land of ........................ years expiring on ..........................
held under Geran (description of title) and No. of Title 3333 *Lot No./L.O. No. 555 Section 2 in the
*Town/Village/Mukim Melaka Tengah, District of Melaka Tengah, State of Melaka in an area
measuring approximately 140 hectares/square metres (hereinafter referred to as “the said Building
Lot”) on which is to be erected thereon one unit of DOUBLE-STOREY TERRACE HOUSE
(describe type of housing accommodation)(hereinafter referred to as “the said Building”)(the said
Building Lot and Building are hereinafter collectively referred to as “the said Property”);

AND WHEREAS the said Property is part of a housing development known as BAYU IMPIAN
*Phase 1 (name of development and phase of development, if applicable) carried on or undertaken
by the Developer under the licence bearing the numbers specified above and the Developer is
selling the said Property under the Advertisement and Sale Permit No A-123456;

*AND WHEREAS the Proprietor has granted the Developer the absolute right to carry out the
housing development and to sell the said Property and the Proprietor hereby agrees to the sale of the
said Property for the purpose of this Agreement;

AND WHEREAS the said Land is charged to BUNGA RAYA BANK BERHAD (Company No.
6560-K) with its registered office at Level 23, Menara Bunga Raya, 70000 Melaka as security for
the financial facility granted to the Developer;
……

Purchase price
3. The purchase price of the said Property is Ringgit: Three Million and Five Hundred
Thousand (RM3,500,000-00) only and shall be payable in the manner hereinafter provided.
……

Time for delivery of vacant possession

24. (1) Vacant possession of the said Property shall be delivered to the Purchaser in the manner
stipulated in clause 26 within twenty-four (24) months from the date of this Agreement.

(2) If the Developer fails to deliver vacant possession of the said Property in the manner
stipulated in clause 26 within the period stipulated in subclause (1), the Developer shall be
liable to pay to the Purchaser liquidated damages calculated from day to day at the rate of ten
per centum (10%) per annum of the purchase price from the expiry of the period stipulated in
subclause (1) until the date the Purchaser takes vacant possession of the said Property.

……
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* Special acknowledgement to Dr. Gita Radhakrishna, the previous lecturer for this Course, for the useful earlier information for
this Course. The current version has been revised by Mr. HS Wong.

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CONVEYANCING PRACTICE UCY4612
Multimedia University, Tri 1, 2023/2024

ANSWER ALL SUB-QUESTIONS

(i) You have now been appointed to act for Miko Montegi in this sale and purchase transaction.
As solicitors for Miko Montegi, advise him on the procedure involved for the completion of
the sale and loan transactions.

(ii) With referring to the extract of the sale and purchase agreement given above, assuming that
vacant possession of the said Property has been delivered to Miko Montegi on 14th July
2020. Can Miko Montegi sue the Developer for late delivery of vacant possession of the
said Property? Discuss with reference to recent cases the law on vacant possession and the
calculation of damages for late delivery.

(iii) About 12 months after taking delivery of vacant possession Purchaser begins to notice
cracks on the walls of the house and finds that his car porch is in fact sinking. The
Developer refuses to take any remedial action claiming that instability of the land has been
caused by works carried by Sun Developers on adjacent land. They advised Purchaser to sue
Sun Developers.

Advise the Purchaser on the remedies available to him.

Question 4

In Remeggious Krishnan v SKS Southern Sdn Bhd (dahulu dikenali sebagai MB Builders Sdn Bhd)
[2023] 1 LNS 362, the Federal Court held that the Tribunal for Homebuyer Claims (‘Tribunal’) has
jurisdiction to hear two separate claims for different and distinct matters in respect of the same
property, where the total amount of dispute exceeds the Tribunal’s jurisdiction of RM50,000-00.

Discuss your view in relation to the decision made by the Federal Court above whether it is correct
or not.

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* Special acknowledgement to Dr. Gita Radhakrishna, the previous lecturer for this Course, for the useful earlier information for
this Course. The current version has been revised by Mr. HS Wong.