INFORMATION

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INFORMATION

Mr. Beli saw an advertisement in PropertyMaster.com about the selling of a double storey terrace house. He contacted the respective real estate agent, namely Ms. C from 168 Gogogo Realty Bhd. Upon arrangement by Ms. C, Mr. Jual and Mr. Beli have come to an agreement on the sale and purchase of all that piece of land held under Individual Title Lot 146 HSD 234 Mukim of Jasin , Melaka together with a double storey terrace house erected on it described as 32, Jalan Jasin 3/1 Taman Jasin Indah 76260 Melaka (‘the Property’) at the price of RM650,000-00. The Property is currently charged Bank Kaya Berhad (Company No. 12345-A) (‘the Chargee ’) on 17.9.2019 vide Charge Presentation No. 21885/2019. The lease on the Property expires on 6th July, 2085 and contains a restriction-in interest that states " the said land cannot be transferred or charged or leased without the consent of the State Authority ". They wish to formalise the oral agreement. Mr. Jual who is your client comes to see you with Mr. Beli . Mr. Beli has never purchased any residential property prior to this. Mr. Jual is now desirous of selling and Mr. Beli is desirous of purchasing the Property on an as is where is basis together with the fittings and fixtures attached thereon, if any with vacant possession and free from encumbrances but subject to the conditions whether expressed or implied, attached to the Property and obtaining the consent from the State Authority. Both Mr. Jual and Mr. Beli want you to act for them in this sale and purchase transaction.

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QUESTION 1

Both parties want you to act for them. Advise parties on the legal position with respect to the Legal Profession Act and the Bar Council’s Conveyancing Practice Rulings.

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ANSWER Q1

Mr Jual ( Haran) : Good morning Mr. Ali and Mr. Vadi I hope you bring good news for me today regarding this sale and purchase agreement. I have also brought along Mr. Beli with me as he is hoping that we can kill two birds with one stone by having this law firm to represent and act for both of us in this transaction. Mr Beli ( Tharmiin ) : Yes, I am too tired and old to be going around looking for lawyers. While getting to know Mr Jual in the process to purchase this double storey property in Jasin , Melaka has led me to believe that we can easily get this sale and purchase done if your firm could represent us for this transaction. Mr. Ali : It is good to see you both here today and we are happy that you are finally able to locate a buyer for the property Mr. Jual . However, sorry to say that we can only represent our client here which is Mr. Jual . As solicitors, we are bound by the Legal Profession Act and S84 of the said act explicitly states that solicitors are only allowed to act for the housing developer and not the Purchaser. I am stating this for the benefit of both of you as if we were to represent both of you it could result in a conflict of interest and a less than ideal outcome. Mr Vadi : Yes, as my partner here states it would not be advisable for us to represent you both and maybe we could recommend other law firms that would be happy to represent you Mr. Beli . Besides, it is also clearly stated in Item No. 7 of the Solicitors Remuneration Order that solicitors must not act for both the vendor and the purchaser and its only allowed in a loan transaction. Mr. Vadi : If in any case we were to turn a blind eye and represent you both, it could lead us to disciplinary proceedings or we might be struck off the rolls of advocates and solicitors. We highly suggest that Mr. Beli to immediately start searching for someone who can represent you as the purchaser in this transaction.