Take a look at the initial agreement and see if there's a clause which says along the lines of "the agreement in binding upon the successors-in-title, heirs, etc of the landlord/tenant". If yes, you can use the agreement and both parties would still be bound by the terms and conditions therein. This would be applicable if the agreement has not lapsed.

When it lapses, this 'side letter' or 'side agreement' method is always used, most likely to save costs and reduce the hassle.

However, I would advise against doing this as you cannot extend, by way of a 'side letter' or 'side agreement' , a lapsed tenancy if 3 years has passed from the date of the tenancy.

A tenancy is only for a maximum period of 3 years. Any 'side letter' or 'side agreement' purporting to extend the tenancy while circumventing the requirement of a duly stamped tenancy agreement would be void and of no effect. It then becomes a monthly tenancy situation. You can't refer to the terms of the earlier agreement anymore as it has lapsed.

When the 3 year lapses, it would be advisable to draw up a new agreement. In your case, it'll be better as your name will be reflected as the landlord.

Furthermore, the tenant always pays for the tenancy agreement, so you don't lose out on anything. The cost is not high anyway.

Better be safe than sorry. 

You're welcome.

A lot of people take tenancy agreements very lightly. If you look at some of the problems faced by tenants/landlords who start up threads in this forum for advice, one common link is that there's no tenancy agreement.

Good luck. 

Your lawyer must have more knowledge of the facts than what you've told me here. What is the duration of the tenancy in the current agreement? 1+1? 2+1? 3?

You see, if it is a 1+1 basis tenancy, if the first year is up, you can have a supplementary letter agreeing to extend it for the second year, subject to an increase in rental of RMx. A simple one to that effect.

But if it has lapsed, i.e 1+1 is over, then you have to draw up a new one, notwithstanding the fact that a tenancy can go up to 3 years at one stretch. You can't create a 1+1+1 with the 'side letter'. Like I explained, this would be illegal as you are trying to evade stamp duty for that extra one year period.

If your 'side letter' is to merely place on record that you are now the landlord, and that the tenant acknowledges it and agrees to deposit the monthly rental into xxx bank account, then by all means go ahead. A lot of people do that anyway. Nothing wrong with that.

But if it is the situation above, follow your lawyer's advice.
You asked a question and then proceeded to answer it yourself 

70 pages is too long! Unless the font size is 70 as well? 

Get a new one done. Simple. Cost won't be too much. If you really pity your tenant and want to be in running to win the Landlord Of The Year 2011 Competition, you can pay the legal fees and stamp duty on his behalf. Nothing wrong with that 

Jess,

To lodge a caveat you need to have a caveatable interest and that only accrues upon signing the SPA and paying the 10% deposit.

Until then you can't caveat the property.

If the 14 days has lapsed your remedy is to request for a refund of the deposit paid, or alternatively, grant the vendor an extension of time.

With regard to your second question - the answer is yes, the owner can still rent it out.

A caveat only stops him from transferring ownership of the property to another party,

Jessy,

In the circumstances where the sale was aborted due to the refusal of the vendor to proceed with the sale, and if you intend to sue the vendor upon the letter of offer to compel him to sell it, then yes, you can lodge a caveat.

However, you cannot accept the refund of the 2% as you would be deemed to have acquiesced (agreed) to the cancellation of the letter of offer and accept the refund of the deposit, thus restoring parties to their original position.

If you had accepted the money, then I'm afraid you've severely weakened your chances to enforce the letter of offer (i'm assuming there's one as there's an agent involved, and agents would have a standard form)

If you want to proceed to sue for specific performance, then yes, go ahead and instruct your lawyer to lodge a caveat.

On another note, your lawyer shouldn't charge you full scaled fees if the sale got aborted. I know certain lawyers only charge a token sum ranging from RM200 - RM500 for merely preparing a draft SPA, and perhaps disbursements incurred, i.e land search. That's all.

Jessy,

So now you're saying that your letter of offer contains a term which states that if the transaction is aborted, the vendor has to refund to you the 2% paid plus another 2% being compensation? Why didn't you state that earlier? 

Well, in that case then go ahead. Take the refund and sue for the 2%. My earlier advice would not be applicable in your case as you have stated that there is a separate clause which states for the vendor to pay you 2% as compensation.

As far as I know, if the vendor fails to proceed, the 2% deposit will be refunded to the purchaser and parties will have no further claim against the other. I think that is a common clause. Guess i'm wrong. 

If the purchaser fails to proceed, the 2% will be forfeited by the vendor and parties will have no further claim against the other. Is that what is reflected in your letter of offer?

With regard to the caveat, if you're suing for RM25k, you still CAN'T lodge a caveat over the property. You still do not have a caveatable interest over the property. It's different if you want to enforce the letter of offer and go for specific performance. Then yes, your intention to caveat the property is because if they transfer it to a third party, it will defeat your claim and render it academic and redundant.

Your lawyer ought to know better of the dangers and pitfalls of caveating a property without due reason. You can be sued by the proprietor for damages. Perhaps you should ask her more about this and be certain about it before deciding to caveat or otherwise.

If it is merely to put pressure on them to pay you 25k, it's a gamble which I would seriously advise against.

You have two options - sue for specific performance, ie to enforce the letter of offer OR to have the deposit refunded together with a sum equivalent to it as compensation. So if the vendor fails to pay you the compensation (which is clear from the facts), then go ahead and file a civil suit to claim the RM25K.

You have a good case and you can obtain summary judgment without the need for the matter to go for trial.

As to how long it will take, it depends on the Court, the efficiency and aptitude of your lawyer, etc. But things move fast nowadays thanks (or no thanks) to the fast-track system. Wouldn't take more than a year, I'd say.

Go for it. Teach the buggers a lesson. Don't lick wounds or anything else for that matter. When you have your RM25K you can buy better things to lick.

PS: Don't get any naughty ideas. I was thinking of a really really expensive lollipop 

I have a friend staying in Arena Green Apt. His unit is at the highest floor. Roof has leak whenever it rains. He has reported to the management office since Dec 2010 and has been chasing them several times. Till today the office has not done anything.

Any advice on what he can do?

Thanks.

No issues. The lawyer would prepare a letter of acknowledgement stating that you've acknowledged receipt of the RM50K in advance prior/concurrently with the execution of the S&P.

DARIO - so essentially there should be no problem for me when the S&P goes for stamping ?

You might be in a fix if the purchaser does not want to allow the deferment. What does the letter of offer to sell state if the vendor does not comply with the terms, i.e execute an SPA within 14 days? Return the deposit? Return the deposit plus a sum equivalent to the deposit as compensation? Watch out for that.

If the purchaser is ok with it, he or the agent can prepare a letter extending the time to comply with the terms of the letter of offer to sell. That's all that is needed.

Some purchasers would be ok with a delay provided that the price is locked in and confirmed.

No issues. The lawyer would prepare a letter of acknowledgement stating that you've acknowledged receipt of the RM50K in advance prior/concurrently with the execution of the S&P.
You might be in a fix if the purchaser does not want to allow the deferment. What does the letter of offer to sell state if the vendor does not comply with the terms, i.e execute an SPA within 14 days? Return the deposit? Return the deposit plus a sum equivalent to the deposit as compensation? Watch out for that.

If the purchaser is ok with it, he or the agent can prepare a letter extending the time to comply with the terms of the letter of offer to sell. That's all that is needed.

Some purchasers would be ok with a delay provided that the price is locked in and confirmed.

* you did not state if the vendor has a lawyer, if vendor does not have a lawyer, then anything which mentions vendor's lawyer will be done by purc lawyer.
* you also did not state if purc has separate loan lawyer, so if there's no loan lawyer, then anything which mentions loan lawyer will be done by purc lawyer.
Upon release of first drawdown - to redeem vendor's loan
- Vendor's lawyer will forward cheque together with deed of receipt and reassignment (RnR) to bank
- Bank executes deed of RnR and returns all original docs to vendor's lawyer
- Once the RnR is dated, the Purc's lawyer will date the DOA (deed of assignment) and send it to LHDN for adjudication
- Once DOA has been assessed Purc's law
. Purc sol sends DOA for adjudication followed by stamping.
- Purc sol serves Notice of Assignment to developer and get it endorsed.
- Purc sol sends DOA and all ori docs to loan sol
- Loan sol advises for drawdown of balance loan sum
. Payment of loan sum/balance purchase price to vendor and hand over of vacant possession.

If there's a delay it could be at the adjudication of DOA by purc's side. Normally that is the case.

Just get a copy of all correspondence between the parties - lawyers, banks, LHDN and you can see the turnover time and locate the delay.

Hi Jessy,

Toyed with the idea awhile ago, but then there's too many situations and scenarios to list down that in the end, it'll probably confuse the reader. Or even confuse me. 

So far the examples you gave:
"prop with and without title, leasehold and freehold, charged and uncharged"

Yes, that's true.

Other scenarios to consider:
Vendor - local, foreigner, company? Different flowchart again.
Purchaser - local, foreigner, company? Also another different flowchart.

Purchase from developer? Subsale? - also different steps involved.

Buying with cash? Or taking loan? Taking 90% loan, 100% loan? Or less than 90%? Government loan?

Type of loan? Conventional? Islamic? Ah long loan?

Must still consider how many lawyers are involved - one lawyer acting for purchaser and purchaser's financier? two lawyers - one for purchaser and another for the purchaser's financier? or three lawyers - one for each party? Different steps for each situation. That is where things get complicated a bit. Who does what? Which lawyer does this and which lawyer does that? For subsale, it is not 100% fixed.

End result: