1. It does not follow the will. EPF and Insurance Policies work on the basis of payment made to nominees. However, if the deceased left a will, then the Executor of the will who would apply for a Grant of Probate obtained from Court and the monies will be paid out to the Executor who will then distribute it accordingly to the surviving next of kin.

If there is no will, then an Administrator would be appointed by the beneficiaries. This Admin will apply for Letters of Administration from the Court. Similarly, this LA would be produced to EPF and the insurance companies, and payment would be made accordingly. It is not a big issue.

2. Then it is similar to a scenario where the deceased dies intestate (without leaving a will). So, the procedure would be same as above, which I would repeat here:

If there is no will, then an Administrator would be appointed by the beneficiaries. This Admin will apply for Letters of Administration from the Court. Similarly, this LA would be produced to EPF and the insurance companies, and payment would be made accordingly.

The Govt would not take it, but unclaimed monies would be deposited with the Accountant-General's Department who would keep it as a stakeholder unless a person claiming to be a beneficiary steps forward and applies to claim the sum.

I remember a chain e-mail a few years back regarding those who do not appoint nominees for their EPF or those whose nominees die and no new nominee is appointed. The e-mail states that the monies will immediately go to Amanah Raya Berhad and it would be very difficult to get the monies out. This is false information and should be disregarded. Amanah Raya Berhad has no right to claim monies from EPF in any circumtances where the EPF account holder does not have a nominee.

Procedure:

1. Appoint lawyer to issue a eviction notice giving 1 month to the tenant to vacate the premises.
2. If they still refuse, instruct lawyer to file civil suit for an order compelling the tenant to vacate and pay outstanding rental (plus mense profits - double rental from the expiry of the notice period until VP).
3. Should not be a problem obtaining the Court order if your paperwork is in order.
4. Serve order on tenant - give him 48 hrs to vacate.
5. If still refuse, instruct lawyer to file enforcement proceedings - Court Bailliff will attend to compel the tenant to vacate the premises. At this stage, if the tenant is still within the premises, then they have to leave immediately.

1. Property purchased by cash or with loan?
Purchased with 90% loan.

2. You can put one name as 2/3 owner and the other as 1/3 but it has no difference as you can't transfer your undivided share in the property. Basically, the property can't be divided into 3 pieces, even though shares are on a 1/3 basis.


3. Who paid for the property or the instalments?
Wife paid for the deposit and the installments shared by both (half each).

4. Then pay the deposit later as well. Or pay it into a lawyer's client's account as stakeholder in the interim.
Ok.

Hi Dario,
Many thanks for your answers   
On your comment on 8% penalty interest between developer and buyer versus my situation of current owner and buyer (me) is quite different to be honest. In the case of developer, they also don't have the property as it's under development etc so don't earn anything from it where else in here, the owner is in possession of the property and collecting rental while potentially also being able to collect 8% interest which will be significant for a 90% loan. I do however understand what you say about appreciation of property etc but still find this to be a little unfair on the buyer. COnsidering that this is standard and cannot be negotiated, what are the areas that the seller can delay this and me potentially needing to pay this interest?

hi dariofoo, i want to ask current i got penalty due to over due date from snp. the annual 8% interest is on what price?

Hi Dario,

Just to confirm what you have said. Assume Person A has a house and in his will, the beneficiaries are the wife and 3 kids. However, what if all of them died in a car crash at the same time? Does this mean that since all the beneficiaries mentioned in the will are dead, it is as if Person A has died intestate(eventhough he has a will), and the house would be distributed to the parents, brothers etc after a Admisnistrator has been appointed?

Hi Dario,

First of all, thanks for helping us. I have some questions on transfer out of love and affection. I read in version1 that if transfer between husband and wife, no SPA needed if transferring out of love and affection - can just prepare the DOA / MOT. Also, both parties are exempted from stamp duty on the DOA / MOT. My questions:

1. My father and I jointly bought a property in 2010. SPA and bank loan are under both of our names. Individual title is out and we are still servicing the loan. Now, my father wants to transfer his 50% ownership to my mother. Do the above statements still applicable? What about the names for the bank loan? What about RPGT?

2. MOT for individual title? And DOA for un-issued individual/strata title?

Your reply will be greatly appreciated. Thanks.

Rgds,
Mcray

I'll reproduce Section 8A of the Housing Dev Act 1966 here for your reference.

8A.  Statutory termination of sale and purchase agreements.

(1) Notwithstanding anything contained in any agreement, a licensed housing developer or the purchasers may apply to the Minister for approval to terminate all the sale and purchase agreements entered into in respect of a housing development or any phase of a housing development which the housing developer is engaged in, carries on or undertakes or causes to be undertaken if-
 
(a) such application, duly made in accordance with subsection (2), is received by the Minister within six months after the execution of the first sale and purchase agreement in respect of that housing development or that phase of housing development; and


(b) at least seventy-five per cent of all the purchasers who have entered into the sale and purchase agreements have agreed with the housing developer in writing to terminate the sale and purchase agreements.

(2) Any application made under subsection (1) shall be supported by-
 
(a) the written consent of the licensed housing developer and of each of the purchasers who have agreed to terminate the sale and purchase agreements and such consent shall have been duly executed by the licensed housing developer and the purchaser, as the case may be, and witnessed by his solicitors or a Commissioner for Oaths not earlier than one month before the date of the application; and


(b) such other documents or evidence as the Minister may require or as may be determined including such evidence which may satisfy the Minister that the licensed housing developer is financially capable of refunding to the purchasers and their financiers all the moneys paid by them to the licensed housing developer if the Minister approves such application.

(2A) In the case of an application made by the purchasers under subsection (1), no licensed housing developer shall unreasonably withhold his written consent to the termination of the sale and purchase agreement.

(3) For the purpose of this section, joint purchasers irrespective of any number in a sale and purchase agreement shall be considered as one purchaser.

(4) Upon receipt of an application under subsection (1), the Minister may grant or refuse the application for approval.

(5) In granting the approval under subsection (4) the Minister may impose such conditions as he may deem fit and proper.

(6) The decision of the Minister shall be final and shall not be questioned in any court and it shall be binding on the licensed housing developer and all the purchasers and no injunction shall be granted to restrain any person from carrying out the decision of the Minister.

(7) All the sale and purchase agreements in respect of the housing development or the phase of a housing development which is the subject of an approval under subsection (4) including those of the remaining purchasers who have not agreed to the termination shall be deemed to have been duly terminated.

(8) The licensed housing developer shall, within fourteen days from the date of receipt of the Minister's approval, inform all the purchasers in writing of the Minister's decision.

(9) The licensed housing developer shall refund all moneys received by the licensed housing developer from the respective purchasers free of any interest within the period stated in the Minister's approval.
(10) Upon receipt of the refund under subsection (9), the purchasers shall immediately cause all encumbrances on the land to be removed and the cost and expenses for such removal shall be borne by and may be claimed as a civil debt from the housing developer.

(11) Any person who fails to comply with any of the provisions of this section shall be guilty of an offence and shall, on conviction, be liable to a fine which shall not be less than fifty thousand ringgit but which shall not exceed two hundred and fifty thousand ringgit and to a further fine not exceeding five thousand ringgit for every day during which the offence continues after conviction.

Basically if the developer can obtain the agreement of 75% of the total purchases, they can terminate the SPA, abort the project and refund all monies paid. You can still round up the rest of the purchasers and object. However, my question is this - there must be a reason why the developer is aborting the project. Financial difficulties, perhaps? Are you sure you want to insist that they carry on with the project? What if it gets abandoned and never gets completed? You would have taken a loan then and you would still have to continue paying your interest, assuming that some progressive drawdown has been done. So, do get a group of purchasers together and discuss the best solution for it.

1. Normally transfer out of love and affection is done when there is no encumbrances upon the property. If your father wishes to do so now, the both of you may need to refinance the property again as the documentation are prepared on the basis of a first party loan. Some banks allow transfer subject to charge/assignment but more often than not, they would insist on refinancing. RPGT does not arise as there is consideration in the transfer. The forms would still have to be filled up though.

2. Yes you're right. MOT is also for strata title.

Thanks Dario. A few more questions:

1. If bank insists on refinancing the house loan, so I will become the sole borrower? Can my father become the guarantor now instead?

2. Will this 50% property ownership transfer (from my father to my mother) be exempted from stamp duty fee?

2. As you mentioned, transfer out of love and affection normally is done when there is no encumbrances upon the property. Besides the refinancing issue, any other issue I should be aware of?

Thanks a lot!

1. Not necessarily. He can be the borrower as well.
2. Yes.
3. Refinancing involves legal fees and stamp duty upon the loan documentation. So do take note of those charges.

Hi Dario,

Do you have a checklist of documents that a buyer should received from my s&p and loan lawyer after a property transaction completed? The property I bought is a subsale condominium, leasehold with strata title.
Regards,
Keen

Thanks Dario for your speedy reply. Last few questions below:

1. Is there any limit to the number of love & affection transfer that can be done by an individual? Ie. Can my father transfer 2 or more properties to my mother via love & affection transfer?

2. For subsequent love & affection transfers from husband to wife, ALL are also exempted from stamp duty?

3. If my father refuses to the the guarantor or borrower after transferring his 50% portion to my mother, the bank will make me the sole borrower of the newly financed house loan?

Thanks very very much for your advice!

I applied for refinance 2 months ago. No change of property ownership but change of loan bearer(from joint acc to single acc). Today lawyer told me need another two months for getting consent from land office due to my property is leasehold.
I donno is it normal practise to do like this?need advice from all.thanks.