Free Legal Advice

Saturday, October 07, 2006

Options

What is an option?
Osborn's A Concise Law Dictionary defines that "a right conferred by agreement to buy or not at will, any property within a certain time".

Consideration must be given in order to validate an Option as a contract. For example, "In consideration of RM10, I hereby give an option to so and so to buy or sell the property described in the schedule hereto upon the terms and conditions herein stated".

It is advisable to attach a draft of Sale and Purchase Agreement to the Option. For example, "The Vendor hereby gives an option to the option holder Ali Bin Adam of No. 222, Jalan Indah, Bangi, Selangor to buy the said property upon the terms and conditions stipulated in the specimen sale and Purchase Agreement annexed hereto"

Option money should form part of the purchase price.


What are basic terms of the option?
Basic terms of the option are:-
# consideration
# terms of payment
# particulars of the property
# where and when to pay the 10% deposit
- specifying the time to pay the deposit
eg. by 9.am. , 19September 2009, in the office of Umi Afiat & Co.

Private Caveats

What is a Private Caveat?


A caveat is a prescribed form to prevent any further transactions in property.


Who can enter private caveat?

Section 323 (1) of National Land Code states that:-
The persons and bodies at whose instance a private caveat may be entered are:-

(a) any person or body claiming title to, or any registrable interest in, any alienated land or any right to such title or interest;

(b) any person or body claiming to be beneficially entitled under any trust affecting any such land or interest; and

(c) the guardian or next friend of any minor claiming to be entitled as mentioned in paragraph (b).

How to enter private caveat?

Section 323 (2) of National Land Code further states that:-
Any such person or body wishing to apply for the entry of such a caveat shall do so in Form 19B and such application shall be attested in accordance with the provisions of Section 211 and shall state therein the nature of the claim on which his application is based, and whether the caveat is to be expressed to bind the land itself or a particular interest only.

Section 323(3) of National Land Code also states that:-
Any application under this section shall be accompanied by the prescribed fee and, so far as it sets out the claim giving rise thereto, be verified by a statutory declaration by the applicant or his advocate and solicitor.