Hi Sifus,
Currently in a tight situation with the MOT penalty fees due to complication with Lawyer.
Long story short.
- Bought a 2nd hand Apartment unit in JB. Complete document signing/bank loan etc etc. around Jun.
- MOT start date by SPA Laywer to Loan Laywer on mid July’18
- Delay in Land Office issue search due to system upgrade, Loan Lawyer unable to present, due at mid Oct’18 (penalty 1).
- Finally able to update, Loan Lawyer feedback Bank reject as document not latest, need to re-submit , due at mid Jan (penalty2).
- 1st payment release, now SPA laywer ask to settle Penalty 1 & 2 by this week to avoid another penalty. (potential Penalty 3).


Question:
1.) Can anyone here confirm that 2nd Quarter 2018, there was an issue with JB Land Office? The Loan lawyer feedback that this impacted everyone requesting for the land search document during that period.
2.) Loan Lawyer insist not their fault, rather it was “Government’s Body” delay, and do not want to take responsibilities on all the penalties. Does this even make sense?.
3.) Should I pay the penalty now to avoid more complication (~RM4xxx)?. I’ve arranged to go to the Loan Laywer office(in KL*) to meet face 2 face to cleared up all this Friday, but the due date for the 3rd Penalty is this week.
Note: their JB branch got transferred to KL sometime during the house purchase last year

Appreciate any sifu advise on this

Have a similar case with my purchase.

Get a chronological of event from both the loan lawyer and SPA lawyer (I believe SPA lawyer is also your lawyer, buyer lawyer?)
What about the seller lawyer?

Penalty fee is charged by who, usually it is charge by seller lawyer, please know whose lawyer represent who and the penalty is paid to who.

Read your SPA and load agreement to know more.
Usually, delay is delay, they don't care if land office issue or lawyer issue. Somebody is going to bare the mistake. If it is the lawyer that delay the submission or give error information, then you can ask the lawyer to bare the cost... but in order to do so, you must have evidence, so the chronology is important. If the lawyer submit late, submit wrong info, then they must bare the price

I suggest you pay the penalty first... but withhold the lawyer fee, or lawyer commission. Besides lawyer fee usually pay when transaction is completed. Once you have solid evidence, then deduct it from the lawyer fee

thanks cdspins

To answer your questions :

Got the chronological of event from the Loan Lawyer side since most of the time, they are the one "having issue" with the land office.
The issue now is the Lawyer blamed the "Land office" for causing the delay in getting the seach done in time. And they said that it is unfair if they have to bare the penalty for this. (written in the chronological timeline).
In the end decided to pay the penalty now . Sadly, I've paid the lawyer fee in full earlier since I was thinking it would motivate them to fully support my transaction. Silly me for thinking so.

Plan to see whether can get the Loan Laywer to help submit an appeal instead.
Was wondering if there is any other legal approach to get this solved

Thanks @rush25 for sharing. Sorry I couldn't help in your ordeal but I'm shocked to see that there is a time frame to settle MOT and we (buyers) need to bear the penalty for the delay. I'm a noob and already got bad experience buying house along the way.

The question here is the penalty is paid to who? The seller or the bank that disburse your loan?
If it is paid to seller, it should be SPA lawyer collecting on behalf of the seller. If it is the bank, then yes, it is paid to loan lawyer.

Talk directly to them and see if they are willing to reduce the penalty if it is really the land office's fault.
This loan lawyer is appointed by the bank or you get yourself? Usually if it is appointed by bank, it is quite efficient.

As you already paid loan lawyer fee in full, I guess unlikely the loan lawyer will do much for you because money already in their hand.
Never pay in full, especially when you start doing renovation... think positive, pay for tuition fee to learn a lesson

By the way, if you are still want to give it a fight. Can complaint to Malaysia bar council
http://www.malaysianbar.org.my/contact/complaints/

ask loan lawyer to write an appeal letter to waive the penalty due to fault/delay/mistake by land office. normally they will allow.