Dear all,

I have a case here, hope you all can advise with your knowledge and experience.

I'm currently applying loan to purchase a Bumi lot [i'm non-bumi]. The owner is a friend of mine and he has bumi status. The bank loan is currently on-hold due to the Developer refuse to release Undertaking Letter to the bank.
Fyi, we've done everything and only pending is the letter from developer in order the bank to proceed.

Below are the points for your reference:

1. My friend purchased the property more than 5years
2. Property is under Master Title
3. Developer claim that it is Land Office requirement to ask for refund if the property is sold to non-bumi
4. Developer will not release the letter until my friend refund back the bumi discount he used to entitle to the developer.
5. Developer couldn't produce any letter or documentation on their claim on the refund. They said it is unwritten law.
6. Our lawyer is hopeless, and the only advise he gave us, is to pay the developer.
7. My friend managed to talk to Land Office personnel and they said it is not in any Act.

So, my question is, is it really under the Housing Act that the developer has the right to ask for refund on the bumi discount? What should we do if the developer insists to get the refund and refuse to issue the undertaking letter?

I've already talk to the bank and nothing much they can do since the property is under master title. they will not proceed until they get the letter from the developer.

Please do share or advise me on solving the above...or at least, what can I do next? This has been dragged for few months.

Thanks all in advance.

Any reason why you prefer a bumi-lot?

1st, my friend's facing financial prob and the bank almost put it up for auction.
2nd, it is a good buy and located at booming area. no more available units. good investment.

i dont know about your case but my house in kl was a bumi lot that was not sold so a chinese guy bought it from the developer at full price then we bought it from him.

conventions are difficult but based on my experience i think the developer has the discretion when it comes to the price. i think the lesser complicated option for you to do is for you to pay the refund price.

This is real big mess it's even worse if the unit leasehold. Is it leasehold?

You're stuck with the developer demands.

Bear in mind that a bumi unit can subsequently be sold/transferred only to another bumi.

The unit is probably already released and it's paid for in full... no bumi discounted price so it's not an issue.

When a bumi unit was not sold after a certain time, it CAN be sold to non bumi as International Lot after getting release from the authorities...
well, that is what i understand .....

Pl correct me if I am wrong. From what I read,

1) the property is completed. ( bought 5 yrs back)
2) Strata title not issued yet.

If above is true, I don't understand why the developer's letter of undertaking is required.
It is no longer required to obtain developer's consent for a sub-sale. Parties just need to inform developer of assignment of rights and developer is obliged to take note of new buyer as rightful owner. Developer's obligation to deliver strata title to rightful owner is contained in original SPA and all rights of original buyer will be assigned to assignee ( in this case, the bank of 2nd buyer)

3) It appears that there is no written 'bumi lot restriction stamped on the master title. It usually go something like this:

"lot bumiputra kalau di jual kepada pemilik bumiputra selepas pihak pemaju tidak boleh di pindah milik kepada pemilik bukan bumiputra tanpa kebenaran kuasa pihak kerajaan negeri"

If I am the developer, I would requests that proof of state consent is produced before the record of ownership is changed.

Specific to your question, the developer has no business to demand for refund of bumi discount as you are not party to the agreement re the discount which was given to the bumi buyer before you.