Memorandum of transfer/Deed of assignment

The real description according to the National Land Code is form 14A NLC in the Schedule list of forms. This is the statutory instrument to effect registration of transfer of property from a transferor to a transferee. A registration fees will be charged according to the registration scale fee (usually one to two hundred ringgit). 

For property without title yet, a deed of assignment will be used. Two deeds of assignments ie. between the vendor & purchaser and next, between the purchaser and the purchaser's financier. The MOT is required when individual title/strata title is issued to the property. You may check with the developer the progress of obtaining the title to your property. The purchaser should be comfortable to know that the name of the purchaser is included in the master title list of the developer.

The Memorandum of Transfer is the official transfer form submitted to the land office to instruct them to transfer the property to the buyer. This form is prescribed by legislation (The National Land Code 1965) and is used for all property transfers in Malaysia. The Memorandum of Transfer must be signed together with the S&P as the S&P documents the terms and conditions of the sale (e.g. payment terms, vacant possession, default, etc) while the memorandum is an instrument of transfer to be submitted to the authorities. Typically, the Memorandum of Transfer is signed (but not dated until later) by both parties at the same time or shortly after signing the S&P (and before payment of the balance purchase price). The memorandum is then kept in escrow by the purchaser's lawyers until it is ready to be submitted to the land office for registration of the transfer. Once the relevant documents are submitted successfully, the purchaser's lawyer will give the go ahead for balance payment to be paid to the seller. From the perspective of the seller, your interests are not comprised even if you sign the memorandum of transfer before receiving the entire payment price as it is held in escrow by the purchaser's lawyer (and not the purchaser itself)

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Allen Wong
Senior Real Estate Negotiator (REN08423)
REN: 08423