Actually the owner has a good case to win as your fren has signed the SPA and agreed to buy the property. The owner can compel your fren to proceed to buy it. Why would the owner be worried?

Of course the owner would want some security - that is the purpose of the 10% deposit. It would be forfeited if the purchaser does not proceed with the purchase or if the completion date is expired.

So what is the exact clause provided for in the SPA? 1 month to pay 10% failing which it will be terminated? What was the arrangement between the parties? Or is it silent?

More info needed.

Not sure la boss. Hard to say. If staff cuti or kursus camne?

1-2 weeks on average. If Shah Alam they promise within 3 working days.

Just to add - if it is for your loan, it is not an issue as the presentation receipt is enough for the bank to issue the cheque for the balance purchase price. Later the bank's lawyer can collect the MOT and forward it to the bank.

This post has been edited by dariofoo: Feb 15 2012, 03:05 PM

Good day dariofoo,

I had recently bought a condo unit which is tenanted. The tenancy agreement shall expired in a few months. I had asked the tenant and he is keen to continue renting the apartment.

My query is, how should I get the rental deposit from the vendor? Or shall I just sign a fresh agreement with the tenant, let the tenant deal with his landlord for the refund of his rental deposit? Many thanks.

You can either get the vendor to refund it back to you simultaneously upon handing over of vacant possession at the end of the transaction OR even simple would be to incorporate the deposit in the purchase price, i.e. it will be deducted from the balance purchase price [BPP] and be deemed to have been paid to the vendor. Something along those lines. Your lawyer ought to know how to go about it. The second option is better as you still take a gamble if the vendor fails to pay you at the end of the day. Better just deduct from BPP.

Thanks for the advice. Will inform my lawyer. Thanks a million

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Added on February 15, 2012, 6:43 pmSorry, dariofoo, I forgot to ask, which lawyer should I inform regarding the rental deposit? The S&P lawyer or the bank loan lawyer? Thanks.

This post has been edited by shneo70: Feb 15 2012, 06:43 PM

SPA lawyer

hi, the case is : i'm a student , start from january(2012), i have rent a hse in taman bunga raya(tbr). the landlord request for 2 months deposit,1 month rental and 500 for utilities. total is 3500.

myself dun have so much money, so i have find some ppl and share the hse with me.
so, start from dec (2011) , i go and seach and finally at around 27 th or 28 dec , i bring 1 ppl go , and he agree ti rent the medium room with me. and he go atm and pay 300 cash and transfer 900 to me. (300 rental, 600 deposit, 300 utilities deposit). all tis is an oral agreement.

after i sign the contract with my landlord, the person who rent the hse has regret , he start to say "if i want quit can i get bek my money", and something like tat, bt at the end , he din quit and stil pay me for january rental and feb rental.
he is actually din move in after he pay me the money bcoz he will only start studying in college around feb.

however, after he pay me feb rental, he say he want to quit even the deposit nid to be forfeited. so , i pay bek his feb rental. and i pay his rental by myself.
but now , his mother com and ask to get bek all the 900 ( 1200 - 300 feb rental ) which is the deposit for rental and utilities.

she say tat : " my son din move in at all, so i can get bek my deposit "


so , wat should i do now ?

i have ask an agent , he say tat , even u just bring a ppl go to see hse, after he agree and did his payment for deposit, no money will be return in anyway.

pls help i will be appreciate it.

she said tat want to bring to court also.

01356033:



Of course you need to refund the deposit. It doesn't matter if he moves in or moves out. The deposit can only be withheld if there is outstanding rental or if there is damage to the property caused by that person which needs to be repaired and the cost will be deducted/contra from the deposit.

That agent gave you a different scenario. In such case, there is black and white Letter of Offer to Purchase (LO) between the parties and the earnest deposit is to book the property. Of course if the purchaser does not proceed the vendor can forfeit it. Furthermore, it would be stated in the LO that it is not refundable , and this is because it goes into the agent's pocket.

In your case, there is no agreement. between you and the sub-tenant. You can't forfeit it. I would advise you to return it to the sub-tenant.

Do you even have a tenancy agreement with the landlord? A standard agreement would prohibit sub-letting, unless with landlord's consent. Inherently, what you are doing now is also wrong. So you can't profit from it.

Cheers.

Thanks dude..
i LIKE "kursus".. Haha

Noted your tips, presentation receipt. Let's me ask my lawyer about it.

thx for ur reply, but do i have any method that dun have to pay bek the deposit ? coz i really no money 1, i din earn any single sen by doing tis. i rent the hse and rent out the room with the price give n by the landlord , and then divided it and rent it to them.

or if i nid to pay it bek, can i delay it until year end ? coz all the deposit those thing i have pass to the landlord , and i held ntg on my hand. and i have a tenency agreement with my landlord, would u like to have a look 1st ? i email it to u.

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Added on February 16, 2012, 2:40 pmand, if really nid to pay it bek, can i minus the deposit as a rental since i pay bek him the feb rental.

This post has been edited by 1356033: Feb 16 2012, 02:40 PM

Good Day dariofoo

A question, say that X & Y went to set up a Sdn Bhd company.
X suspected Y has embezzled/misappropriate company's funds.

What are the course of actions that X can take?

Please advice. Thanks

You need to pay it back. Whether can delay or not is up to the sub-tenant. You're not supposed to use that deposit. Deposits are refundable and must be returned upon request once the deal is done. I only give out advice via this thread so no PM or e-mails will be entertained. Do put it up here so I take a look, if you want. I doubt if it would help anything though. That is between you and the landlord.

My advice is basically the same as before,bro.

Cheers.

Lodge a police report. If it is true then it is a case of CBT.

Is Y a director? Then the company has to sue Y for breach of director's duty. By way of civil suit. You can get an injunction to freeze Y's assets if you have proof that the embezzled funds are in his account and that you have reasonable grounds to believe that he about to dissipate the funds out of the jurisdiction of the Court. Not easy, but it sure would put some pressure on Y as all his accounts will be frozen (if the injunction is granted). How many directors? If only 2 of them then have to forget it as both directors must agree for the company to appoint a lawyer. If 3 directors then X can gang up with the other to go ahead with the suit.

X as a director/shareholder can also file a Petition pursuant to Section 181 of the Companies Act against Y. Can ask the Court to cancel or vary any transaction made. However, clear proof of embezzlement must be shown, or the Court would not intervene. Various orders can be sought under this Section, even up to asking the Court to wind up the company.

Police report first. Very important.

^ Thanks a lot dariofoo for the information.

By the way, the company has only 2 directors, which are X & Y.

By the way, the company is due for its annual submission of audited financial report to the LHDN. However, since there is no one to check the account (as Y is withholding the financial record / the records were not kept properly), the audit cannot begin.

Question;

[1] Do X needs to inform LHDN of this?
[2] & winding up legal costs, should it be borne by both directors, or from the sales from the inventories of the company?

Kindly advise, and I thank you in advance for the time you took to understand & answer our (other forumers & I) questions.

Hi Dario, I have a lawyer looking into my issues but he’s been very quiet about it, I wonder if you have an opinion on what’s going on in my life. It’s kinda long, I hope you bear with me.

My father passed away on November after being ill for nearly two years and I am the eldest of 2 children (My brother is in form 3 this year, and I am 26). My mother agreed that I should look into all his assets, and my father managed to give me the PA (Power of attorney) to his three floors building that we rent out. (Our current income comes from the monthly rental). I am a fresh accounting degree graduate but unfortunately I feel that I am shoved too soon into the world of legal complications. Here’s why:

My late father owns several pieces of land, but according to my lawyer I am not permitted to inherit any of them as he is a bankrupt. My lawyer sent out a letter of insolvency and I am currently awaiting word (and legal advice from him). Apparently I can’t sell or develop the land until the bankruptcy issue is solved.

A developer recently demolished a partially built concrete pillars at one of my late fathers’ land and when I found out I came fuming. The developer agreed to offer me a property in the 30 storey condo that they are building, in which the size of my fathers’ land is I estimate a mere 2% of the entire scope of the project. They did send out several letters proposing to acquire the land to my father, but the negotiations did not meet any conclusions due to his untimely death. The offer itself is tempting, as the offered property is valued roughly 50% more than the initial amount offered to my father. (I do realize that this is a form of compensation for their trespassing). Regardless, as we (my mother, brother and I) are only renting a house now and we are searching for a place, my mother agreed on the offer. However, I do not have any authority on that land, it’s still under my late fathers’ name.

I have two questions:
1) What is required on my part to solve my fathers’ bankruptcy? I would like to develop or sell my fathers’ land so I could probably have enough to open up a business to secure the family income. Unfortunately, my father did not left any outline as to what we should do in a worst case scenario.

2) What are the procedures that I have to take to secure the property at the condo that is under construction that was offered? I would wish that I could legally secure my family and I that so we could move in at the time of completion. What documents should I claim from them and is there any precautions I should take? The developers are being helpful so far, but it’s far better for me to be prepared.

I value any insights on the matter and thank you so much for taking time reading this. Have a nice day.

1. Question - the comp secretary (CS) is on whose side? If it's from X side, then X has to instruct CS to come up with a board reso to appoint auditors for the company. X signs it and Y mus also sigh it. Y has disappeared, is it? If so, then CS should write to SSM to inform them of this, to place it on record of the director's refusal to sign the board reso AND refusal to provide the company's financial records. SSM can take action against Y. Probably the accounts would only be submitted late and this would attract a penalty. That is when X can show all the documents to prove that he acted in good faith at all times and that the delay was from Y.

2. Legal fees - X would have to cough it up to pay his lawyers, as he would be suing Y in his personal capacity. Note that the company cannot sue Y in its capacity as 2 directors need to sign the reso to appoint the law firm to act on its behalf. Surely Y would not sign it to consent to the appointment of the law firm to sue him!

Costs of winding up - would be paid out of company's assets. If no assets, then X would probably have to cough it up and bear the expenses, since he is the one who is seeking the winding up order. Whether he wants to pursue Y for indemnity and damages later is up to him

matches_malone:



I think you have put the cart before the horse in this case. The first and foremost thing which you have to do is to inform the Insolvency Department of your father's death. Has this been done? The Dept would have a file on him and all his affairs are to be managed through the Dept. You have no power to appoint a lawyer or deal with the developer on behalf of your father's estate. You need to check with the Dept first. They would advise you further on this. If the estate wants to appoint a lawyer, consent (called sanction) of the Dept has to be obtained first.

Hi Dariofoo,

I got a situation here. I was in a process of buying a 2nd hand house 33 years ago. 10% deposit had been given to the owner. SNP was ready and signed. I've also singed bank agreement for loan. Everything went good.

After a while, bank has noticed me that the house cannot be bought due to the owner is declared bankrupt. It hangs there.

SNP lawyer suggested to sue the owner for not being honest not telling he is a bankrupt. But until today, nothing is done. I've taken my own initiative to deal with the owner for returning my deposit back as i didn't get the house and dont want to pursue my intention onto the house anymore. The owner agreed to pay back by installment. It's fine for me.

The thing is i've paid the lawyer. I would say he failed to do his job. Was he supposed to do property searching before proceed with anything e.g snp, etc? Can I get the money back frm the lawyer or my money is wasted already?

hi dariofoo,

I just bought an 2nd hand house with 8 years, apartment, leashold. Paid 3% booking fee. Assigning lawyer to prepare S&P, and applying loan.

My Qs is:
1. Shall I use the same lawyer of seller? (seller use same lawyer with developer, in the process of MOT now) Seller intend to transfer the Strata to my name directly, as the MOT just start.
2. How do I ensure the house tax, indah water, water & elec bills has been clear before hand over to me? Is this lawyer job?
3. Agent & seller try to persuade me to use same lawyer, to save time & money. But I not sure which part to be exactly saving money. Can you help?

Many thanks.

Hi, a simple question here.

I planned to operate a business, trading related shop. What is the requirement to operate a store in Malaysia? Any procedure I can refer to?