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 Deed of Mutual Covenant, If I sell my house

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mini orchard
post Oct 8 2023, 06:12 PM

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QUOTE(westlife @ Oct 8 2023, 05:46 PM)
I am selling my house to a buyer.

when i bought the property from developer previously, other than signing the SPA, i also signed the Deed of Mutual Covenant.

if I sell my house now, does the buyer needs to also sign this document with the current resident commitee?

my house is individual title.
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Your property is a strata title similar to a highrise.

Subsequent buyers are bound by the original dmc whether he choose to sign or otherwise.
mini orchard
post Oct 8 2023, 06:44 PM

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QUOTE(westlife @ Oct 8 2023, 06:23 PM)
no. mine is a individual title despite that the developers asked to sign this, i recalled they said within 5 years (could not remember exactly) or something cannot change the exterior or something only.

my precint ppl had been modifying the exterior of the house including extending the house (ours are cluster house with 10 feet of land).

so now i no need to bother whether he signs or not rite? not my business after the house is sold anyway..
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Maintenance fee is tag to the property and not owner. Same with utilities.
mini orchard
post Oct 8 2023, 07:47 PM

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mini orchard
post Oct 9 2023, 07:42 AM

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QUOTE(westlife @ Oct 9 2023, 07:23 AM)
yes, i know. but it indeed had it. but if i recalled correctly, it was the first 3 or 5 years cannot modify the exterior, subsequently can. unlike strata title that is forever cannot or?

all my neighbours had started to extend/modify the exterior after 3 to 5 years which i can notice by now also. i had stayed here for 9 years+..
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Who runs the community now ? Residents Association ? Developer ? 'JMB' ?

AGM conducted ? Accounts presented ?

mini orchard
post Oct 9 2023, 08:39 AM

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QUOTE(Jingle91 @ Oct 9 2023, 08:13 AM)
Got, like jadehill gamuda and ecohill prescient 3 opposite of clubhouse, the house is under individual title, but on paper the owner "voluntarily" (actually they must sign it together with S&P, no exception) enter into permanent agreement with developer to follow all the rules stated in DMC and agreed to pay the management fee. So it look like gated and guarded community like stratified property, but it govern by the DMC as contract, not under strata act. So the owner can still renovate the exterior of house, but must get the approval from management office since they already "agreed" in the DMC. But usually only corner lot can extend the house if they got land space, intermediate can't do much, like you can't extend car porch and build a balcony on it, some uniformity need to maintain, or if your unit is open concept so you also can't install auto gate. At most the 5 or 10 feet empty land at back yard can be extended. Before that must submit all drawing to the office and pay deposit, if not they won't issue working permit to your contractor. So they got more flexibility.

One more example is my relative house in jadehill can install the solar on rooftop and leave the conduit pipe on the back of exterior wall, but my house under strata must conceal and can't let any wire or pipe appear on exterior wall.
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This type of DMC is just another commercial contract and depending on how the initial contract was drafted, it may not bind subsequent purchaser unlike those strata properties.
mini orchard
post Oct 9 2023, 09:09 AM

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QUOTE(Jingle91 @ Oct 9 2023, 09:04 AM)
For jadehill no such loophole la, the DMC is drafted by lawfirm with bullet proof. It is original owner's duty to ensure new buyer to sign new DMC with management office so his name can be removed. So this is also good point when you buy from established developer.
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Can't be sure with that as every good and famous lawyers will also lose some cases in court 😂
mini orchard
post Oct 9 2023, 09:17 AM

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QUOTE(westlife @ Oct 9 2023, 09:11 AM)
if the old owner name is not removed but the property is sold le?
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All property related charges are tag to the property. Whoever is the last named owner or living there will be responsible.

This post has been edited by mini orchard: Oct 9 2023, 09:20 AM
mini orchard
post Oct 9 2023, 09:28 AM

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QUOTE(westlife @ Oct 9 2023, 09:18 AM)
yes, my community is relatively well maintenance with tight security. the houses here still look consistent depsite some owners chose to extend using the 10 feet land. and most of them extend all the way to the end of the 10 feet land and link to the wall of neighbours. i do not agree that owners should extend all the way to the end though, becos it will block the air flow between the houses. my house has not much wind, i guess mostly becos the houses opposite me extended the houses that block the wind.  tongue.gif
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The main purpose for any residents association is the security. If it is done well by a third party, I don't think there is much to be done unless the committee wants to find fault with residents.

So whatever disputes between neighbours can be directed to the local council.

This post has been edited by mini orchard: Oct 9 2023, 09:28 AM
mini orchard
post Oct 9 2023, 10:13 AM

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QUOTE(westlife @ Oct 9 2023, 09:53 AM)
ic, for u guys case whose property is also gated and guarded, how many % of your community is currently paying the maintenance fee regularly. seems like no matter what community there will always be ppl who refuse to pay for it even they have signe DMC etc. before.
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When the property is under strata, the non payment is not an issue. Is only when they can collect. Interest is chargeable for late payment.

When is under individual title, the non payment can be tricky. It depends on how the contract is worded.
mini orchard
post Oct 9 2023, 10:51 AM

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QUOTE(Jingle91 @ Oct 9 2023, 10:27 AM)
Didn't really check on the %, my house even is under strata title but still got owner don't pay, lol. Last year got publish their name on notice board then some of them only go to pay. Reason is either they didn't receive the bill or they don't stay at here so forgot to pay. But did check with office, if the amount owe until very substantial amount, and the owner still ignore after few times of letter demand sent, then they can foreclose the house to cover the expenses. But so far no such thing happened yet.

Those who buy individual without DMC, mean normal guarded neighbourhood like my old house, nothing can do to non compliant owner, they can still access by using visitor lane. They have the perogative as individual title owner. As the forming of RA is based on their consent only, they are not binded by any contract.
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Foreclosure is a serious action. Can the management do that ?
mini orchard
post Oct 9 2023, 11:15 AM

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QUOTE(Jingle91 @ Oct 9 2023, 11:12 AM)
Can, that is in the worst and extreme scenario, when the owner purposely to be ignorance, and by that time he or she should have been blacklisted in all kind of watchlist as well.

It stated in my DMC also, If I and my wife as owner failed to comply and in non action and refuse to co operate, then we agreed for MC to initiate the clause.
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Even Majlis tempatan can't do that for non payment of yearly assessment.
mini orchard
post Oct 9 2023, 11:29 AM

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QUOTE(Jingle91 @ Oct 9 2023, 11:21 AM)
Not sure about Majlis tempatan, but for pejabat tanah, your premise will be forfeited if don't pay after receive the red warning letter on 10th years.

Anyway, I am referring to my DMC sign with developer. Buyer already accept it during initial stage. So when want to buy this kind property, then need to pay lo
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Non payment is one thing.

Whether DMC have the right to foreclose the property is another. Does it specifically stated it in the DMC like bank loan agreement ?

We cannot assumed things when contract doesn't state.

mini orchard
post Oct 9 2023, 11:47 AM

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QUOTE(Jingle91 @ Oct 9 2023, 11:32 AM)
You may refer to my earlier reply on my DMC.
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DMC is not about borrowing money like bank loan.

A non payment of a loan and for services are two different legal recourse.
mini orchard
post Oct 9 2023, 01:01 PM

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QUOTE(westlife @ Oct 9 2023, 12:44 PM)
i saw many who owe the maintenance but like nothing happened to them...
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Those living in strata will have the Act to follow.

Others, nothing will happened to them.

Whatever, no one can denied another from entering his own property.
mini orchard
post Oct 9 2023, 01:41 PM

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QUOTE(westlife @ Oct 9 2023, 01:17 PM)
indeed. i also feel that it is the case.

my precinct here only has slightly more than 50% of ppl actually paying for the maintenance fee seriously.
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If you are in the following scenario ...

Let's say you owe 10k fee and the mgmt want to foreclose your 1mil property ?

You think the judge will issue a foreclosure order ?

And banks have the first right claim over the loan on property.

This post has been edited by mini orchard: Oct 9 2023, 02:16 PM
mini orchard
post Oct 9 2023, 02:24 PM

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QUOTE(Jingle91 @ Oct 9 2023, 01:56 PM)
Wah, your house seen like very unique, mind to tell the project's name? Because DMC should be signed by all owners together with S&P so got no exception, hence no need consent anymore after it go live. Anything need to go through AGM vote with resolution.

If the G&G can be stopped anytime, mean it is just normal neighbourhood style guarded community like my old house, and it is managed by Residents Association without much power, because owner can anytime revoke their consent. That is why chaotic situation might occur if residents are not cooperative enough. Like my old house, one owner just make covering report and attached it with his complaint to MBKJ, on same date MBKJ instruct RA to stop the barrier gate for two weeks and answer to the complaint, owner have very big power in this kind of neighborhood. Until today that owner still don't want to pay anything but we just bear with that as most residents prefer to have the barrier gate with access card. So free rider can happen in this kind of neighborhood
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All DMC contracts under the Strata Act must be followed through.

Other private DMC are merely commercial contracts and there is no law to state that breaching of the contract is an offense until proven in court.
mini orchard
post Oct 9 2023, 02:42 PM

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QUOTE(Jingle91 @ Oct 9 2023, 02:41 PM)
Don't confused

I never say DMC signed with developer during onset for individual title will be deemed as an offence when the owner breached the rules.

DMC under strata will be deemed as offence because the default party will be fined under the act, and need to answer to the lawsuit initiated by MC.

DMC for individual title will not have fine, but a contract is a contract, it is not just a paper to sign for fun. That is why I said the owner "voluntarily" to enter into the contract, so if the owner against the contract that he has signed,  the MC can pursuant to the clause in contract to sue him via civil lawsuit, and there is no room to fight because he had signed it on day one.
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You said foreclosure ?

Of course the mgmt can sue till federal court ... that is his right, or everyone right.

But suing a subsequent buyer may not be straight forward.

Signing a contract doesn't mean is cast on stones. There are void and voidable contracts term.

This post has been edited by mini orchard: Oct 9 2023, 02:58 PM
mini orchard
post Oct 10 2023, 08:49 AM

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QUOTE(Jingle91 @ Oct 10 2023, 08:02 AM)
My apology, I was the one confused. As the power attorney is signed for bank loan, not for DMC.

My DMC did not say that I agreed for foreclosure. It only mention if MC has exhausted all ways listed under the paragraph yet still unable to recover the expenses, I as defaulter agreed that MC has its final discretion to take any action which it think is fit.

But if I need to sell the house, it is my obligation to get new buyer to sign the letter of undertaking from the MC for him to continue follow the DMC and relieve myself from it.
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QUOTE(Jingle91 @ Oct 10 2023, 08:08 AM)
Think best is to refer to your DMC. As my one is under strata and it seen like different from yours.

For my one, the developer has it's own property management company, so both are named in DMC. Ultimately it will be managed by the MC. Even if the MC is changed, it shall continue valid for subsequent MC come into the place, no discontinuity.
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I was surprised when you mentioned foreclosure which is a drastic action and not even provided in the Strata Act.

At most the mgmt can seized the moveable property (tv, fridge, washing machine, sofa etc) of the defaulter to recover the outstanding under the Strata Act but for private DMC, how far can they go to recover is another thing.

As for subsequent buyer under private DMC, the seller can inform the buyer but is not obligated to ensure he sign again. It will be his 'disputes' with the mgmt.

And lawyers won't know the existence of any private DMC in an individual title unlike strata unless it is made known to him and he will then request the seller or his lawyer to provide further info.

 

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