Negotiators Certification Course Day #2
Day 2 of NCC #600 began with a session on Real Estate Forms, Title, Tenancies and SPA by Kelvin Yip, Associate Director at Knight Frank Malaysia. Valuable tips shared by Kelvin in this session that I found useful:
1 RENs should ALWAYS check the original Title Deed for key information such as the floor area, and just not rely on information found in SPAs. This is because information in many SPAs such as floor area might be preliminary, IE subject to final measurement by a surveyor when a Strata title subdivision application is submitted.
🤠's Dua Sen: I once bought a Golden Triangle freehold property in the heart of KL via a Proclamation of Sale. I paid about RM200 PSF for a freehold 3 bedroom apartment at Bukit Ceylon. That was less than 50% of the price the previous owner - a property investment company - had paid to the developer, a company in liquidation. I also joined the JMB of Downtown Condominium, a 44 unit condominium at Bukit Ceylon.
When the Downtown Condominium JMB decided to submit a Strata subdivision application (normally it's the developer's job but unfortunately it was in liquidation) the JMB committee discovered upon engaging a surveyor :
a. The master title at the developer’s office could not be found and it was necessary to pay for a duplicate
b. there was an extra unit built that was not in the original plans - I think but cannot be 100% sure the extra unit was on the upper floor
c. the floor areas for standard 3 bedroom units at Downtown were actually bigger by 15 - to 20 sf after the surveyor's final measurement. The main reason for the discrepancy was the outside ledge housing the Aircon Compressors were not originally included in the original SPAs !
2 The importance of doing a detailed inventory for Properties sold as “Lock Stock and Barrel” . Kelvin mentioned he handled the sale of a bungalow by a Dato under “Lock Stock & Barrell”. Kelvin soon found a buyer for the property. The buyer noted a grand chandelier listed in the inventory. He liked it and agreed to the price.
But on the day of vacant possession the buyer noted the grand chandelier was missing. It turned out the chandelier had been removed because it was a gift to the Dato's wife. She was reluctant to part with it for sentimental reasons….
The buyer was of course upset and unwilling to proceed unless the chandelier was reinstated. A potentially aborted sale was only prevented because of the existence of a detailed inventory list prepared by the real estate agent. In the end, the Dato finally agreed to reinstate the chandelier after he had consulted a lawyer who noted the existence of an inventory where the chandelier was mentioned. According to Kelvin, the Dato told him with a wink , “You’ve just cost me another diamond “
How to build trust with your clients
The final session was on the Law relating to Property Transactions by a senior partner at a Penang law firm, Puan Zemilah binti Mohd Noor. Puan “Min” impressed me with her sound advice on the importance of building trust by newbie real estate agents.
Naturally I took to heart her excellent advice. I asked Puan “Min” my two standard questions how to determine competency in conveyancing lawyers :
What is James Edward Buxton v Supreme Finance and
Touché.
It turns out as a competent conveyancing lawyer with more than 20 years experience, Puan “Min” is aware James Edward Buxton & anor V Supreme Finance is all about the Supreme Court's important ruling on the competing rights of a chargee (eg the bridging financier of a developer in liquidation) and bona fide purchasers. And Puan “Min” of course knew access to the Small Estates (distribution) Act only applies to individuals who die intestate.
Puan Min noted that in practice means real estate agents must keep up to date with changing legislation on real estate and the standard forms used in conveying property titles. For example, Puan Min noted that the exemption for foreign buyers on the purchase of high rise properties in Penang of at least RM700,000 will expire at end 2022 and the minimum will revert to RM1 million next year.
Group Photo Of Participants Of NCC #600 held on 27-28 August 2022
Post Script
Thanks to my Better Half who is a VIP ( Very Important Professor), I have spent many happy hours reading law journals at a excellent Law Library at a top university. I also enjoy access to the Law Library’s online CLJ Malaysian Law archives. So on the balance of probabilities, I am probably more knowledgeable about property conveyancing matters than many qualified members of the Bar Council in Bolehland- ie, I am a quintessential example of a Loyar Buruk in legal matters.
My extended family has many practicing and former conveyancing lawyers. A brother was a senior conveyancing lawyer in KL. Another brother works in the Land Office in the Land of Oz where he dispenses advice on conveyancing issues to the public and lawyers. Two of my brothers in law are senior conveyancing partners in top law firms in Red Dot Island. My two nieces ( one is a university Moot Court champion) and a nephew are lawyers, as is my son who has a top UK law degree. My Better Half’s uncle was a senior conveyancing lawyer in KL.
The background story how I bought a “half priced” freehold Golden Triangle apartment in the heart of Kuala Lumpur is recounted in my post at 360 KLCC, “How I bought a freehold 1500sf 3 bedroom apartment in KL's Golden Triangle for 50% off”
Last year another 3 bedroom unit was up for auction at Downtown Condominium. See below:
KL auction property market #2 - Downtown Condominium, Bukit Ceylon
Puan “Min” is right about the importance of building trust with your real estate clients. In my blog Real Estate Marketing 101 I provide actionable tips on how RENs can build their very own Personal Brand, for example:
4 tips on how to boost your social media profile part 1. part 2. part 3. part 4
Please check out my other posts for real estate newbies:
Your Own Real Estate website for less than RM600 (US$130) discuses how to use a Squarespace template to quickly build a website to showcase your professional expertise
Why every REN should have a LinkedIn profile - discusses why social media marketing is important for real estate professionals
How to write a LinkedIn profile for real estate professionals - what to avoid and what to put into your online CV
Effective LinkedIn Marketing is Easy discusses how to write catchy hooks in social media marketing
How To Stand Out And Win Listings Part 1/5 shows how to establish your credentials as a real estate professional and earn the trust of clients by taking your first steps to creating your Personal Brand.
