Circulars

Courtesy Call/Meeting with the Selangor Land Registry on 10.05.2011

 

The KL Bar Conveyancing Practice Committee (the Committee) had paid a courtesy call on the Selangor Land Registry on 10.05.2011 at 11.00am during which the Committee members had met with the Timbalan Pengarah and various heads of the relevant departments. The Selangor Bar Conveyancing Practice Committee was invited to join us for the said meeting and was attended by its chairperson and several other sub-committee members.

 

Prior to the meeting, the Committee sent a few reminders to the members of the KL Bar inviting them to forward issues that they would like the Committee to raise with the said Land Registry,. However, very few had responded.

 

Apart from making acquaintance, the Committee took the opportunity to raise these issues:

 

  1. Penalty on Late Collection of Titles

 

The meeting was informed that the penalty was only imposed for registration received after 15.03.2011. The RM100 penalty will be imposed only when law firms fail to collect their documents after 7 working days of registration. In the event if the document is not ready for collection on the 7th day after registration, the penalty will be waived.

 

In response to complaints that there is no notice to the firms of solicitors when the registration is done, the said Land Registry reminded members of the Bar to take note of the following sentence in their receipt (or Nota Perserahan):

 

“Sila buat pungutan dalam tempoh tujuh (7) hari bekerja dari tarikh didaftarkan iaitu, selepas satu hari dari tarikh perserahan. Denda lewat pungutan akan dikenakan ke atas hakmilik ini sebanyak RM100-00 selepas tempoh tersebut. (Kecuali Hakmilik Strata)”

 

1.1     Submission Receipt (Penyata Perserahan)

All representatives from the law firms (runners/lawyers) must bring along the ‘Penyata Perserahan’ or at least the “Nombor Perserahan” to enable the Land Registry Officer to trace the document, especially in cases where the documents are not ready for collection.

 

      1.2     Hotline/Web-based checking/sms notification

               The Land Registry is agreeable with the Committee’s request that law firms must have a way to check the status of their submitted documents before sending someone for collection. A hotline will soon be installed where law firms may call and check on the status of their documents. The hotline number will be announced at the Land Registry website once it is ready.

 

The Land Registry has agreed to look into the Committee’s suggestion to further improve the checking process such as through website, sms or push-mail notification. We were caused to understand that the said Registry is currently constraint by limitation of manpower and funds.

 

 

  1. Strata Titles

 

      The meeting was informed that there are 31,000 Strata Titles pending to be scanned at the said Land Registry and they intend to clear the backlog by July 2011. The Land Registry has requested members of the Bar to bear with them for the time being.

 

      2.1     New Payment Counter for Strata Titles (Level 3)

               The Land Registry has agreed to open a special payment counter at Level 3 to enable all Strata Titles transactions be made at the same level. The new counter will be opened on 15.05.2011

 

      2.2     Quit Rent

The issue here is with properties with Strata Title which are still registered in the name of the Developer, pending transfer to the individual purchasers. The Land Office will only accept quit rent receipt on “petak” basis, up to 31 March, after which, they can only accept quit rent receipt paid based on the Master Title, which is usually paid collectively by the Developer or the Property management office.

 

In the case if the Management Office or the Developer fails to pay by 31 March, then the application for registration will not be accepted for want of current receipt, but at the same time, the Developer or the management Office has up to May of each year to pay up the quit rent without incurring penalty for late payment. Many Developers/Management Offices will wait till the deadline to pay up for the quit rent, hence causing all interim application to be “stranded”.

 

 

The Land Registry replied that this issue involves laws on federal and state level and is not a matter that can be resolved over a meeting. Meeting agreed that the issue needs further discussions and a follow-up meeting on this specific issue to be held at another later date. In the meantime, the Committee will study the appropriateness of requesting the Bar Council to intervene and bring this matter up with REHDA and the Ministry of Housing and Local Government.

 

      2.3     Application for Consent to Transfer for Property without Strata Title by Foreigners

The Bar raised the issue as the said Land Registry had rejected such application when same practice is allowed by the Wilayah Land Office.

 

The Land Registry confirmed that applications for consent in relation to non-strata transactions will be received only for new developments and first purchasers (direct from developer). However, they will not accept application for consent for property for sub-sale when the said property has not been issued with strata title as yet.

 

After some discussion, the meeting agreed to have further discussion as it involved interpretation of laws. The Land Registry will schedule another meeting in the near future.

 

 

  1. State Authority on Consent on Purchase of Property by Foreigner (S433B)

 

      3.1     Approval of Consent – can it be improved

The Committee raised the matter as consent usually takes a month at the state level and another month at the district level.

 

The Land Registry replied that they usually process all applications within 2 weeks from the date of submission (whether it is individually submitted or forwarded from the District). Documents will then be sent to the office of the Menteri Besar for his approval. From that point onward, the Committee was informed, is beyond the Land Registry’s control.

 

      3.2     Problem with Land Registry’s Practice under circular 3/2011

  1. The requirement to have a license from MITI in relation to Industrial Land

The meeting was informed that the circular is only a general guideline, and in the event if there is no MITI license, the firm can explain that in their letter.

 

  1. The Proviso on Commercial Property or “Tanah Perniagaan” where it states, inter alia,”Bukan Pegangan Melayu”

The Land Registry confirmed that this does not include bumi allocation by the Developers.

 

 

  1. Rejection/Suspension of Documents

 

The meeting was informed that the Land Registry no longer suspends any documents since October 2010. Submitted documents with errors will be rejected outright and re-submission of documents after amendment will be charged an additional RM20.00. For documents with major mistake, full registration fees may be charged.

 

 

  1. Other Arising Matters:

 

      5.1     Mistake on Documents of Titles by the Registry

The Land Registry agreed that lawyers do not need to submit Statutory Declaration if the mistake is on the part of the Land Registry.

 

      5.2     Difficulty in extracting the certified true copy (CTC) of documents which may take a year – can the Land Registry expedite the process

 

A member raised this issue with the Committee; hence it was brought up. None of the Committee members had faced this one-year problem.

 

The Land Registry is of the view that if a matter has taken a year, the lawyer concerned should have gone to the Registry’s office and resolve it, and it may have been a one off case. The said Registry however admits that they are currently digitising all documentations and while the procedure is ongoing, extraction of CTC will take longer time than they like. However, they informed that when all is done, CTC can be done on a click of a button. They have requested law firms to bear with them in the meantime, and for urgent matters, to please proceed to see their officers.

 

      5.3     New Circulars/Direction to be announced more publicly

The Land Registry informed the meeting that their website is regularly updated and the members of the Bar are urged to periodically checked their portal for latest notifications/circulars – please note their website:http://ptg.selangor.gov.my/

 

      5.4     Different Procedures in Districts Land Offices

The Committee urged the Land Registry to standardise all procedures in all their District offices

 

The Land Registry informed the meeting that the District Offices should always observe standard practice, but due to change of officers etc, the new officers may not be aware of the practices. They have agreed to regularise this issue.

 

 

Issues from the Land Registry

 

  1. Registration of Runners

 

The Land Registry urged the law firms to ensure their runners (free lance runners) to register with the Selangor Land Registry as the number is still low (1,000 registered runners) compared to the Wilayah Land Office with 3,000 registered runners.

 

  1. Officers On Duty

 

The Land Registry had requested the lawyers/runners to approach their officer on duty in the even if they encounter problems and need urgent resolution.

 

 

Meeting was adjourned at 1.15pm

 

Agnes Chan Kim Hong

Chairperson

KL Bar Conveyancing Practice Committee