Perfection of Transfer (“POT“) refers to the process of registering the transfer of ownership of a property from the developer to the purchaser on the Land Title.
Perfection of Charge (“POC“) refers to the process of registering the Charge granted by the purchaser (Chargor) of a property in favour of the bank/financial institution (Chargee) on the Land Title. This process is normally required where the purchaser undertook a loan to part-finance the purchase of the property.
Generally, purchasers of new housing development projects with Land Title yet to be issued, will subsequently have to undergo the POT and the POC process upon issuance of the Land Title.
We set out 5 REASONS to promptly attend to the POT and the POC:
(a) DELAY IN THE SUBSEQUENT SALE AND PURCHASE TRANSACTION between you and your prospective purchaser if the transfer of the Land Title is not perfected and the Developer does not agree to transfer the property directly to your prospective purchaser.
(b) HOLDING/STORAGE FEE IMPOSED BY THE DEVELOPER if you fail to complete the POT within the timeframe stipulated. As a recent example, we came across a Developer imposing a holding and admin fee of RM200 per month for failure to complete the POT within the stipulated timeframe.
(c) ARDUOUS PROCESS IN THE EVENT OF CHANGE OF CIRCUMSTANCES if the Developer got wound up as you will have to then deal instead with the appointed liquidator, receiver and manager.
(d) UNABLE TO PARTICIPATE IN THE MANAGEMENT CORPORATION as you would need to perfect the registration of transfer on the Land Title before you can exercise some of your rights as owner i.e to attend and vote at the annual general meeting.
(e) YOU COULD FIND YOURSELF IN BREACH OF A CONTRACTUAL OBLIGATION as it is a common contractual obligation under the Deed of Assignment (by way of Security) signed between you and your financier bank or financial institution to attend to the POC upon the issuance of the Land Title.
Conclusion
We advise property owners to promptly attend to the POT and the POC upon the issuance of the Land Title.
