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Indah Water Konsortium Sdn Bhd's Bills in Sale and Purchase Agreement in Property Sale Transaction (

Circular No 136/2012
Dated 25 June 2012
 
To Members of the Malaysian Bar
 
Indah Water Konsortium Sdn Bhd’s Bills in Sale and Purchase Agreement
in Property Sale Transaction
 
Indah Water Konsortium Sdn Bhd (“IWK”) has informed us of the following:
 
We believe that most SPAs in property sale transaction do not specifically state “Sewerage and / or IWK bill in the list of utility in the “outgoings” clause. Further, IWK is also not being notified on the changes of ownership in the properties. Based on our records, we continue to issue sewerage bills under the previous owner(s) name to the address of the property which has been transferred to the Purchaser(s), who is now the new owner of the property. This creates huge problems and issues as to who is to pay IWK bills, in whose name legal action is to be initiated, apportionment of liabilities, limitation period, etc.
 
To solve these issues, IWK seeks the following assistance from Members:
 
(1) To insert additional wordings - “sewerage (Indah Water Konsortium Sdn Bhd) bills” - in the outgoing clause in Sale and Purchase Agreements; and
 
(2) At the end of each sale and purchase transaction, the solicitors shall notify IWK in writing on the transfer of the ownership of the property and to provide the particulars of the new owner together with a copy of the Sale and Purchase Agreement.
 
For further details, refer to the attached copy of the notice we received from IWK.
 
For further inquiries, please do not hesitate to contact Chuah Ying Ying, Officer by telephone at 03-2050 2106, or by email to yingying@malaysianbar.org.my.
 
Thank you.
 
Hj Abdul Murad b Che Chik
Chairperson
Conveyancing Practice Committee
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