THE LEGALITY OF A PRIVATE LEASE SCHEME: PULL THE WOOL OVER THE PURCHASER’S EYES?

Authors

  • Noraziah Abu Bakar Faculty of Law, UNIVERSITI TEKNOLOGI MARA, MALAYSIA
  • Ruzita Azmi Kuala Lumpur Campus, UNIVERSITI UTARA MALAYSIA, MALAYSIA

DOI:

https://doi.org/10.21837/pm.v21i27.1288

Keywords:

Private Lease Scheme, freehold land, lessee, ownership, housing accommodations

Abstract

The developer transferred a 99-year lease to the purchasers in a PLS instead of transferring the property ownership. Upon lease expiry, the property shall be reverted to the owner. In Malaysia, the Housing Development (Control & Licensing) Act 1966 (HDA 1966) regulates that a developer must transfer property ownership to the purchasers. "Build and lease" under the PLS does not comply with the law. This article is a conceptual paper that employs doctrinal research to analyse the legal position of property sale under a PLS and examine its compatibility with the existing law. The Courts' decisions on cases related to a PLS property are analysed to determine the PLS's implication on the purchasers' interest. Ultimately, to safeguard the purchasers, the amendment of the laws is recommended as a legal platform to legitimise the PLS.

Downloads

Download data is not yet available.

References

Abu Bakar et. al (2021). The Legal Implications of a Sale of Property by the Malaysian Developers under the Private Lease Scheme: In two minds? Environment-Behaviour Proceedings Journal. 6-(17) 177-181. DOI: https://doi.org/10.21834/ebpj.v6i17.2867

Buang, S. (1993) Undang-undang Tanah di Malaysia. Kuala Lumpur: Dewan Bahasa dan Pustaka.

Eva, Y., (2018 June 4). HBA “no” to leasing private land for housing. The Sun (Sunbiz) page 9.

HBA objects to leasing of private land for housing purposes. (2018, June 3). The Sun Daily. https://www.thesundaily.my/archive/hba-objects-leasing-private-land- housing-purposes-MUARCH552393

Hussin D. K.B., Rahman, P. S. D. M. M. G. B. M. A., & Mohamad P. M. D. M. T. S. H. (2016). Urban Renewal and Strata Scheme Termination A Proposal for En Bloc Sale: The Malaysian Approach. NAPREC (R/D) 6/16.

Iskandar Investment explains Medini Private Lease Scheme. (2018, July 23). The Sun Daily.

Iskandar Investment explains Medini Private Lease Scheme. (2018, July 23). The Sun Daily. https://www.thesundaily.my/archive/iskandar-investment-explains-medini- private-lease-scheme-DUARCH566137

Izanda, N. S. S., Samsudin S., & Zainuddin, M. (2020). Strata Title Reforms in Malaysia: A Review and Challenges of Regulatory and Governance Panacea. European Journal and Molecular Medicine, 7(8), 413-426

Jing, Z.W., (2019). Towards Enforceable Standards, Rules and Rights in Strata Management: An Analysis. IIUM Law Journal Volume 27 page 397-446 DOI: https://doi.org/10.31436/iiumlj.v27i2.433

Loong, D. C. K., & E. (2020, December 4). Beware the oppressive Private Lease Scheme. Edgeprop. My. https://www.edgeprop.my/content/1771030/beware- oppressive-private-lease-scheme

Loong, D. C. K., & E. (2020, December 8). The private Lease Scheme offers “no proprietary rights' for the buyers. UPON Tribune. https://puontribune.com/2020/12/08/private- lease-scheme-offers-no-proprietary-rights-for-the-buyers/

Loong, D. C. K., & E. (2020, November 6). End of Private Lease Tenure – what happens then? EdgeProp.My. https://www.edgeprop.my/content/1759245/end-private- lease-tenure-%E2%80%94-what-happens-then

Loong, D. C.K. (2020, December 6). Private lease scheme: A risk for house buyers. Focus Malaysia. https://focusmalaysia.my/private-lease-scheme-a-risk-for-house- buyers/

Malaysia. Parliamentary Debates, Penolakan Cadangan PLS di Parlimen (Question 1), House of Representatives, 2019, November, (Oral presentation by Ministry of Water, Land and Natural Resources)

Mohsin A et. al (2020). Perlaksanaan Skim Pajakan Tanah Strata: Kajian Kes Medini Johor, LAND, 4(1), ms95-118

National House Buyers Association, (2018 November 21). Private Lease Scheme (PLS): A Generational Curse, Malay Mail page 28.

National House Buyers Association. (2018, November 21). Private Lease Scheme (PLS): A Generational Curse. Malay Mail, page 28. https://rehdaselangor.com/wp- content/uploads/20181121_Private_Lease_Scheme_PLS_A_Generationsl_Curse-min.pdf

Nurul Sal Shabila, I, Salfarina, S., Mazalan, Z (2020). Strata Title Reforms in Malaysia: A Review and Challenges of Regulatory and Governance Panacea. European Journal and Molecular Medicine, Volume 7, Issue 8.

Pavither, (2018, June 5). Housing Projects on Privately Leased Land Detrimental to Buyers. PropertyGuru. https://www.propertyguru.com.my/property- news/2018/6/172418/housing-projects-on-privately-leased-land-detrimental-to-buyers

Penolakan Cadangan PLS di Parlimen (Question 1), Oral presentation by Ministry of Water, Land and Natural Resources in Parliamentary Session held on 7 November 2019.

Siang, T.E., Ying, K.C., Seng, J.K.Q., (2015). Gated Community- Modern Lifestyle in Urban Area: Issues and Challenges on Legal Development in Peninsular Malaysia.Malayan Law Journal

Zamri, N. I. (2019) Skim Pajakan Persendirian bagi Bangunan Strata di Medini, Johor Bahru. Projek Sarjana Muda: Universiti Teknologi Malaysia.

Zolkafli, U., Yahya, Z., Zakaria, N., Akashah, F., Othman, M., Ali, A., & Salleh, H. (2014). Latent Defects: Approaches in Protecting House Buyers’ Right in Malaysia. MATEC Web of Conferences, 15, 01040. https://doi.org/10.1051/matecconf/20141501040 DOI: https://doi.org/10.1051/matecconf/20141501040

Downloads

Published

2023-07-26

How to Cite

Abu Bakar, N., & Azmi, R. (2023). THE LEGALITY OF A PRIVATE LEASE SCHEME: PULL THE WOOL OVER THE PURCHASER’S EYES?. PLANNING MALAYSIA, 21(27). https://doi.org/10.21837/pm.v21i27.1288