Why Is It Important for Homeowners to Do Perfection of Transfer?

Why Is It Important for Homeowners to Do Perfection of Transfer?

Many people are interested in purchasing a property directly from the Developer as it is a new house but many people seem to have no idea that they need to do Perfection of Transfer once they receive notifications from the Developer regarding the issuance of the strata title or individual title. So, why is it important for homeowners to do perfection of transfer?

What is the perfection of transfer?

It is a process of transferring ownership from the Developer to the Purchaser, or better known as transferring a Master Title to an Individual or Strata Title. This process is needed when a person bought a house which is still under the Developer’s name (Master Title).

Going back to the main purpose of this article, there are several reasons on the importance of doing Perfection of Transfer.

• Firstly, even though you have legally bought a property, but if it is still under the Master Title, then your interest over the property is still limited. This is because your name has yet to be registered in the Land Title. Thus, by doing a perfection of transfer, your interest over the property will be secured and your name will be registered in the Land Title as the landowners.
• Next, in the future if you intend to sell or transfer your property, the process will be straightforward and direct as it no longer involves the Developers but only between you and the Purchaser. There are situations where the Developer’s company has wound up or is bankrupt but the property is still under Master Title which will cause you to face difficulty in selling or transferring your property. This issue may be time-consuming and is very costly. Other than that, it might also affect your potential purchaser as it will be difficult for them to get a loan as the bank is usually reluctant to give a loan if the Individual or Strata Title has not been issued or has yet to be perfected.
• Thirdly, a problem may arise when your property is charged to a bank, i.e. loan. Normally, your bank will be informed/notified regarding the issuance of the Individual or Strata Title. If you decide to ignore or delay in doing the Perfection of Transfer, your bank might invoke its power of attorney to perfect the charge. In doing so, extra charges will be incurred and thereafter the same will be imposed upon you.
• Furthermore, an additional storage charges might be incurred every month by the Developer if the owner delays in doing the perfection of transfer even after being informed by the Developer. The charges may vary depending on the courtesy of the Developer.

Hence, it is very advisable for you to immediately do a Perfection of Transfer once you are notified by the Developer in order for you to save your money, time and to prevent future issues that might occur.

Get Free Legal Advice & Quote From Our Property Lawyer Now In Less Than 2 Working Hours via WhatsApp