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Meeting with Pejabat Pengarah Tanah dan Galian Wilayah Persekutuan Kuala Lumpur (Circular No 248/201

Circular No 248/2019
Dated 14 Nov 2019

To Members of the Malaysian Bar

Meeting with Pejabat Pengarah Tanah dan Galian Wilayah Persekutuan Kuala Lumpur

The Bar Council Conveyancing Practice Committee (“CPC”) held a meeting with the Pejabat Pengarah Tanah dan Galian Wilayah Persekutuan Kuala Lumpur (Federal Territories Director of Lands and Mines Office Kuala Lumpur, “PPTG WPKL”), on 22 Oct 2019.  The issues discussed with PPTG WPKL included the following:

1.         Rejection of transfer for land undergoing application for development

PPTG WPKL informed us that for land that is undergoing an application for development, any application to transfer such land would be rejected, pending the completion of the process.  Development applications include those for amalgamation, change of title conditions and land use, surrender of land, and subdivision.  Members may refer to the PPTG WPKL website at http://www.ptgwp.gov.my/portal/pembangunan for further information regarding what amounts to “development”.

2.         Consent to charge waived for charge presented with Certificate of Sale by Land Administrator (“Form 16I”) or Certificate of Sale by Court (“Form 16F”)

2.1       Previously, it was unclear whether, when there are restrictions against a charge without the consent of the State Authority, consent to charge is needed for a charge presented along with Form 16I or Form 16F.

2.2       PPTG WPKL confirmed that, notwithstanding any restriction endorsed on the title, consent to charge is not required when the charge is presented for registration together with a certificate of sale.

3.         Land proprietors may update their address without submitting original issue document of title

3.1       PPTG WPKL encourages land proprietors to update their address.

3.2       When changing an address via Form 26A, the original issue document of title must be submitted with it.

3.3       However, where the title is charged to a bank or other financial institution, PPTG WPKL agreed to waive such requirement.  Instead, a photocopy of the original issue document of title will suffice.

4.         Address stated in Paragraph 4 of the Application for Entry of Private Caveat (“Form 19B”) must be an address in Malaysia

4.1       PPTG WPKL has rejected the presentation of entry of private caveats where the address of the caveator provided is a foreign address.

4.2       Members are reminded that the address stated must be an address in Malaysia, as notices can only be served to an address in Malaysia pursuant to the National Land Code 1965.

5.         Proof of payment of ad valorem stamp duty for financing facility for presentation purposes

5.1       When presenting a charge (that is stamped for nominal duty) for registration, documentary evidence of ad valorem stamp duty having been paid on the principal document, is required to be submitted.  The documentary evidence may consist of a copy of one of the following documents, and must be certified as a true copy by a Member:

(a) Stamp certificate;
(b) Page where the stamp duty is franked; or
(c) Certificate of exemption.

6.         Member’s name to be stated when signing off letters to PPTG WPKL

6.1       PPTG WPKL requires every letter to PPTG WPKL to state the name of the Member signing the letter.

7.         Registration with amended Court Order

7.1       PPTG WPKL informed us that it has rejected presentations of dealings that were presented with a Court Order that had been amended, but that does not match the Court Order on the e-Kehakiman portal.

7.2       If a Court Order is submitted with presentation of dealings, Members must ensure that PPTG WPKL is able to verify the Court Order via the e-Kehakiman portal.

7.3       The Bar Council views seriously any report received from PPTG WPKL that, upon verification by PPTG WPKL via the serial number of a Court Order submitted together with presentation of dealings, the Court Order does not match the official records.  The Bar Council wishes to remind Members to strictly follow procedures prescribed under the Rules of Court 2012.

8.         E-Tanah Portal

8.1       Members are reminded to fill in the requisite details of the transaction, such as the date of instrument and date of sale and purchase agreement prior to submission, through the e-Tanah portal.

8.2       Members are reminded that PPTG WPKL has the right to reject the presentation if the documents or information provided by Members are deemed to be insufficient.

9.         Parcel Quit Rent

9.1       The Strata Titles (Federal Territory of Kuala Lumpur) Rules 2019 (P.U. (A) 282) and Appointment of Date of Coming into Operation of Rent of Parcel or Provisional Block (P.U. (B) 380) were gazetted on 15 Oct 2019 and 8 Aug 2019, respectively. 

9.2       As from 1 Jan 2020, parcel quit rent will be charged on each strata title, instead of on the master or block title of a stratified property.

9.3       The parcel quit rent bill for 2020 will be progressively endorsed for viewing in the PPTG WPKL website during December 2019.  The bill may then be printed.  However, payment on the bill may be made only from 1 Jan 2020.

9.4       The parcel quit rent bill for 2020 will not reflect any arrears of payment of quit rent arising from any arrears on the master title quit rent.

9.5       In 2020, PPTG WPKL expects to receive from the management corporation of each strata scheme in its jurisdiction, a list of all payments made by proprietors of each strata parcel to the management corporation.  However, where the quit rent of the master title remains unpaid to PPTG WPKL, the management corporation will make payment of the quit rent collected by it from parcel proprietors to PPTG WPKL, which will then be credited to the respective parcel quit rent bill.

9.6       The parcel quit rent bill for 2021 will take into account the list provided by, and the payments received from, the management corporation.  In respect of any strata parcel that has arrears of quit rent, such arrears, together with the relevant penalties, will be reflected in the corresponding parcel quit rent bill for 2021.

9.7       For any presentation of dealings of a strata title in 2020 where there are arrears of quit rent on the corresponding master title, apart from ensuring that the parcel quit rent for 2020 has been paid, the following documents must be submitted together with the presentation:

(a) Evidence of payment to the management corporation of the quit rent for that strata parcel for the period up to 2019;

(b) A letter from the management corporation confirming that there are no arrears of quit rent in respect of that strata parcel for the period up to 2019 (“MC Confirmation”); and

(c) A statutory declaration by the transferee confirming particulars of the relevant parcel, that there are arrears of quit rent in respect of the master title and undertaking to pay the arrears of quit rent for that parcel, if any.

9.8       If the strata scheme has no functioning management committee or joint management body, apart from ensuring that the parcel quit rent for 2020 has been paid, the following documents must be submitted together with the presentation:

(a) A statutory declaration by the transferee that:

  • confirms the particulars of the relevant parcel, his/her knowledge that there is no functioning management committee or joint management body, and that there are arrears of quit rent in respect of the master title; and
  • provides an undertaking to pay the arrears of quit rent for that parcel, if any;

and

(b) A statutory declaration by the transferor that:

  • confirms particulars of the relevant parcel, his/her knowledge that there is no functioning management committee or joint management body, and that there are arrears of quit rent in respect of the master title; and
  • provides an undertaking to pay the arrears of quit rent for that parcel, if any.

9.9       As at the time of the meeting, we were made to understand that the statutory declaration is required only for the presentation for registration of a transfer, or a certificate of sale.  Members are to note that other documents usually required for presentation — including evidence of payment of quit rent — are still required.

9.10     The statutory declarations are not required to be stamped, and no filing fee is payable.

9.11     We understand that PPTG WPKL will be issuing a circular (together with a sample of the required statutory declarations) on this matter shortly.  Some of the procedures set out above may be subject to further revision by PPTG WPKL.  CPC will provide the circular to Members, once received.

9.12     CPC is also looking to organise a briefing for Members by PPTG WPKL regarding this issue.  A circular will be issued in due course.

9.13     In the meantime, a copy of the FAQ on parcel quit rent issued by PPTG WPKL is provided with this circular (see page 6), for Members’ reference.

9.14     Members are reminded to plan their presentations towards the end of the year carefully in order to avoid crowding in the last few weeks of December.

10.       Guidelines for foreigners acquiring properties

The Bar Council raised its concern that the title of the current guidelines, “Panduan Pengguna: Consent — Permohonan Baru Untuk Kebenaran Tanah Oleh Warga Asing (Pelupusan)”,is misleading.  PPTG WPKL took note and will look into this matter.

11.       Description of companies

11.1     The Bar Council raised the issue of how a company formed under the Companies Act 1965 is to be described in the forms to be used for registration purposes.

11.2     PPTG WPKL clarified as follows:

(a) Companies formed under the Companies Act 2016 must be described as such.

(b) Companies incorporated before the coming into force of the Companies Act 2016 can be described as either being incorporated under the relevant legislation (eg the Companies Act 1965) or under the Companies Act 2016.

12.       Form of execution by companies

PPTG WPKL confirmed that it will follow the Companies Act 2016 in respect of the manner of execution by companies.

13.       Is a Court Order needed for sale of property by an executor of a deceased’s estate?

13.1     It has come to the attention of the Bar Council that, for the executor to sell property, PPTG WPKL insists on a Court Order.  

13.2     The Bar Council is of the opinion that the Probate and Administration Act 1959 clearly gives the executor an unfettered right to sell the property, unless there is an explicit restriction stated in the will.

13.3     However, PPTG WPKL is of the view that unless there is a clear power of sale granted to the executor, transactions that involve the executor selling the property would require a Court Order to effect the same.

13.4     The Bar Council will continue to engage with PPTG WPKL on this issue, and will notify Members as and when there are developments.  

14.       Quit rent receipt for presentations

14.1     PPTG WPKL informed us that a copy of the quit rent receipt is no longer required to be submitted when presenting instruments of dealing for registration.

14.2     However, Members must ensure that quit rent has in fact been paid for the title in respect of which there is a presentation for registration of a dealing.

Thank you.

Roger Tan
Chairperson
Conveyancing Practice Committee