Yep.

1. Compromise la. Go for 6+3.
2. Normally it is not rented out to other people. It depends if the owner agrees to it but I doubt if he will agree, as he might as well rent it out to a third party at the market rate himself!

You can ask for discount from disbursements. That is allowed. Miscellaneous, transport, papers, etc all can be reduced. If same lawyer involved why not?

Thanks Dario! Never thought the transfer can be that fast for Hulu Langat land office... hopefully it can be done within 2 or 3 months.

I ask because I read at some websites were saying that the transfer and processing at land office may takes up to 6-9 months. for example: http://www.iproperty.com.my/news/246/Trans...les-or-be-fined

Could the info at iproperty be outdated?... really can't find much related info on the internet...

Don't get confused between registration of transfer and application for consent. It is consent which takes 6-9 months ( 6-9 is maximum - if lucky can get earliest 1 month and average between 3-4 months). Registration is faster.

Dario, thanks a lot for you explanation!

Sometime the material on the Internet just make people confuse especially when you read it from popular website.



The highlighted text could be referred to the whole process and the website missed out info for the getting consent from land office...

Cool, there's a few purchasers with the same situation. Guess need to appoint a lawyer

Thanks for the advice

This post has been edited by suiteng: Aug 28 2011, 11:38 AM

I would like to find out if oral contracts are enforceable for property transactions in Malaysia.

The situation is that I made an offer to buy a property to the owner. He agreed verbally, and I issued him a cheque and signed on a letter of offer. He later changed his mind and decided not to sell at the agreed price. He had not signed on the letter of offer and also not banked in the earnest deposit cheque.

Can I get enforce the oral agreement by taking him to court -- either to seek for specific performance or damages?

Nothing is written except for the following:
1) the email by the property agent suggests that there was a verbal agreement
2) however, the letter of offer that I signed explicitly states that "the letter of offer is only effective after both parties sign on the letter of offer"

How strong is my case?

Hi dariofoo,

Need your help again. Questions as follow:-
1. I got a filled "CKHT 502 Form" and "2% cheque payment for Ketua Pengarah Hasil Dalam Negeri" from the Purchaser Lawyer
2. I already filled up my CKHT 2A through e-Filling CKHT except the "Tarikh Bayaran" as well as "Nombor Resit Bayaran".

My next step is to proceed to LHDN to submit the "2% cheque payment for Ketua Pengarah Hasil Dalam Negeri" and fill up the "Tarikh Bayaran" as well as "Nombor Resit Bayaran" and submit together with "CKHT 502 Form".

Am I right?

After these, what should I do next?

This post has been edited by dexterhau: Aug 28 2011, 07:21 PM

Just want to add something.

If you want to take the developer to Court to enforce its promise made via the booking form, what you are going for is called specific performance (SP). In property transactions, SP is a usual remedy to compel a seller to sell the property to the purchaser based on a letter of offer to purchase/SPA. In such cases, it is quite clear cut - the property is defined (usually a completed, tangible property) and the other details are all ironed out properly in the letter of offer/SPA.

In your case, there are not much details in the booking form. What you have is just basically description of the property and the price. You now want to compel the developer to construct a property which fits the description (whatever little stated) in the booking form via an order for SP. There's not tangible property yet, so your SP would be for the developer to construct and thereafter sell to you that particular unit at that particular price, as stated in the booking form.

As far as the law is concerned, SP will only be granted where damages is not an adequate remedy. In the earlier example given, the Court will allow the SP as there is no reason why the seller ought to be allowed to off the hook just by paying damages to the purchaser. The purchaser must be given the right to purchase that particular unit at the agreed price. Damages will not be an adequate remedy in that case, as there is no duplicate for the property which the purchaser can turn to. There is only that one particular unit which has been identified and agreed upon.

In your case, there isn't even a tangible property to begin with. The developer can rebut your case by stating the reasons why the project could not be constructed and sold to you at the initial agreed price and/or description. The explanation through their letter (although vague) would be their point of reference. Probably they did not get their developer's license for that description of property? In that case, it has become impossible for them to continue to construct that property. In such case, SP will not be granted by the Court.

Furthermore, in your case, damages (compensation) could be an adequate remedy. What are your losses so far? A few thousand RM in booking fees? You haven't even appointed a lawyer to draft out the SPA. Even if you had, damages would cover reimbursing you all legal fees paid.

As such, I think that it won't be easy to get an order for SP in your case - even if you get around 200-300 purchasers to kick up a fuss.

Nothing to lose to consult a lawyer though. Just don't end up wasting good money chasing bad money. Make sure that the lawyer has a good battle plan lined up.

Good luck

As you had said:
2) however, the letter of offer that I signed explicitly states that "the letter of offer is only effective after both parties sign on the letter of offer"

That's the last nail in the coffin for your case. I don't think you can go any further than that. Oral representations/terms can't replace terms put in writing. Section 91, Evidence Act 1950. Sorry, mate.

1. You submit your cheque for 2% together with Form 502 at LHDN Jalan Duta payment counter.
2. Once paid, fill up that "Tarikh Bayaran" as well as "Nombor Resit Bayaran" in your CKHT 2A online.
3. Print CKHT 2A out, sign it and submit it to the branch where your tax file is registered.
4. Wait for the notice by LHDN - whether you'll get a rebate, or they would demand for extra payment of RPGT.

Hi dariofoo,

1. Is it a must to submit my 2% cheque to LHDN Jalan Duta or can I submit it to other branch such as LHDN Menara PGRM or LHDN Wisma KWSG Jalan Kg. Attap?
2. Noted.
3. Again the same question, must I submit it to the branch where my tax file is registered or other branch will do? Can I do it within the same day when I am at the LHDN branch? Maybe I will use Hard Copy instead?
4. Just FYI, I am the purchaser, why I will get a rebate? I thought the tax suppose to be paid by the Vendor and if there is any rebate or extra payment will be directed to the Vendor right?

Thank you.

Thanks for your valuable comment. Very much appreciated.

Out of curiosity, I understand that there's this Statutes of Fraud (which I suspect is part of the Common Law) that explicitly states that oral contracts are just as valid as written ones, except in certain circumstances where written agreement is required (e.g. real estate transactions). Is there something similar in Malaysia where contract must necessarily be written for real estate transactions?

1. Payment counter is at Jalan Duta. At the HQ itself. For other places to pay am not 100% sure so perhaps you can browse their website to find out.

3. You can try your luck to submit it at any branch, but if they do a quick check and find out that it's not the exact branch, then will reject the docs. By right it ought to be accepted in any branch, but the actual practice differs from what LHDN initially promised. To be safe, better just file it at your tax branch.

4. You're 100% right. My mistake there. Am always quick to assume that the one who submits is the one who pays. In actual practice the vendor can undertake to file CKHT 502 and pay the 2% themselves to LHDN. As such, the purchaser would stay out of the transaction. In your case, obviously you're paying on behalf of the vendor using the retention sum. Humble apologies.

Cheerios.


This post has been edited by dariofoo: Aug 28 2011, 11:06 PM

Don't get me wrong, mate. I didn't say that oral contracts are unforceable. Oral contracts are 100% enforceable, no doubt. So are contracts by way of conduct. There is nothing which says that a contract must be put down in writing.

What I stated refers to the gist of your case - i.e. that since there already are terms put down in writing (as per the letter of offer), then any oral evidence to the contrary cannot be adduced and accepted which contradicts those terms.

Let me illustrate:

Vendor's case - terms of the letter of offer states that "the letter of offer is only effective after both parties sign on the letter of offer". The purchaser had signed the letter of offer. I did not sign the letter of offer. As such, the letter of offer does not bind me.

* As you can see, he is relying on the terms of the letter of offer.

Your case (as purchaser) - you signed the letter of offer, you paid the 2% cheque and the owner verbally told you that he is agreeable. The agent also sent you and email confirming same (I assume so as you did not delve into its contents).

* You, on the contrary, is relying on the vendor's oral agreement, and the email by the agent.

Before the Court, you cannot adduce evidence of the vendor's oral agreement nor the contents of the email by the agent to support your claim that the vendor has accepted your offer to purchase the property. Why? Because those evidence contradicts the written terms of the letter of offer which clearly stipulates that "the letter of offer is only effective after both parties sign on the letter of offer".

So, did both parties sign on the letter of offer? No.

End of story.

Hope the explanation above suffices for your understanding. Sorry if it's not clear enough. If you're still not satisfied, you can always seek professional legal advice.

Good luck

PS: Common law does not apply when there is statute. Common law cannot supersede statute, i.e. the Evidence Act in this case.

Im sorry guys, anybody can guides me where can i find information to sell a house? I have zero knowledge in selling house. I bought a house at rm400k a year n half ago, and due to some personal reason wanted to let it go. Im still paying my interest, havent paid the installments.

The developer agent who were my agent when i bought the house last time told me there is a buyer wanted to buy house at rm500k. Now the thing i really dunno what should i do now, should i appoint a lawyer or something. He asked me to sign an agreement to let the new buyer buy the house.

He told me im not gonna lose anything(despite there is 3% penalty for early settlement), i can get back my money deposit rm13k plus interest i have been paying for 1 year n half bout rm12k, so the total ive paid is rm25K. He told me i can get back rm40k plus minus after minus out everthing.

How do i go from here?

Thanks again for your assistance. I understand completely all of your points.

I think you misunderstood one of the points that I was trying to raise. I was trying to understand if there is a requirement in Malaysia that real estate transactions MUST BE IN WRITTEN AGREEMENT for it to be enforceable. This follows from the Common Law (I believe the Statutes of Fraud) that explicitly states that oral agreement is not good enough for real estate transactions.

Thanks

So far, i had done my reading up to pg 44 in a single night and still reading.
I got nothing but amazing to describe dariofoo.

Keep up the good work.
I'm looking for my first purchase on a property. Lets hope no complication arise.

Since you seem quite lost, I would suggest that you appoint a lawyer to act for you for the sale of the property. Although in some cases, the vendor chooses to be unrepresented and 'tumpang' the purchaser's lawyer, I think that it would be better for you to appoint one at the moment.

Don't sign anything prepared by the agent unless you fully understand the terms and conditions. If you're uncertain, appoint a lawyer to vet through it, and that lawyer would also vet through the draft S&P prepared for the subsequent sale.

You would have to pay legal fees for the lawyer, which you can calculate using the calculator at the first page of this thread. You can also download the SRO in PDF format. Since you own the property for less than 5years, you would also need to pay RPGT - which is 5% of the nett gain.

Good luck mate.

I'm sorry I missed out that query.

No, there's no such requirement in Malaysia,mate.

In any event, written agreements are always preferred and has the most probative value when it comes to evidence. Oral evidence is essentially one person's word against the other. You claimed he said it, he will deny that he ever said it.

If you're claiming for something you have to prove it. You want to prove the existence of a fact, and the burden of proof lies on you.

As such, to rely merely on oral representation is essentially a weak (although not an impossible) case for you.