|FOCUSING ON NEW ISSUES :|
In November 2018, National Housing Department director-general N. Jayaselan told the media that the revamped National Housing Policy has been approved by the Cabinet, with its main focus the separation of public and private housing, with an emphasis on renting. “We have put forward a Public Housing Management Act,” he said.
The new policy will also focus on the drafting of Tenancy Act. Jayaselan explained that the government wanted to promote “social renting” where the tenant first rent public housing before moving into what he calls “social ownership” of public housing. He added “This is where private housing by private developers can come in and the next step-up for the tenant is to move up from “private renting” to “private ownership”.
The Private Lease Scheme (PLS) was introduced by Iskandar Investment Bhd (IIB) as a way to retain its land ownership in the 902ha Medini special zone of Iskandar Puteri, Johor. According to IIB senior vice-president Fauzidah Abdul Rahman, “selling leases instead of land enables IIB to remain the landowner and retain control over the special zone”.
Under the scheme, IIB as the landowner sells the lease to master lease concessionaires, who will then subdivide the master title and sell down to property developers. These property developers will then develop the land and sell to the end purchasers.
According to the National House Buyers Association (HBA), there is no provision in the National Land Code and the Strata Title Act to allow private lease schemes as practised in Medini.
The rent to own (RTO) scheme was first introduced by PR1MA in 2014, where tenants were given the option to buy the property after five or ten years at a predetermined price. Since then private developers have launched their variants of the deferred home ownership scheme. Selangor Dredging Bhd launched its “Reside and Purchase” scheme in 2016 while IOI Properties Group Bhd later offered its “Stay Now and Buy Later” package. Financial institutions have also hopped on the RTO bandwagon, with Maybank Islamic Bhd being the first to do so when it launched HouzKEY.
In early 2014, Perbadanan Wakaf Selangor (PWS) signed a joint-venture with a private company to develop a piece of wakaf land in Selangor. The parties will apply the concept of “Ijarah” or lease in the implementation of development projects for the land. Through the concept of Ijarah, the land to be developed continues to remain the property of MAIS and only its benefit is transferred to the “purchasers”. Meanwhile, Selangor Government-Linked-Companies (GLCs) have been asked to assist PWS in developing abandoned wakaf lands in the state.
In January 2015, UDA Holdings Bhd launched its subsidiary UDA Waqf Sdn Bhd to develop wakaf land in Malaysia as part of the company’s effort to ensure growth and diversification of wakaf assets. There are at present over 10,120ha of wakaf land in Malaysia that has not been developed, with great potential to be converted into commercial as well as residential projects.
In February 2018, UDA Holdings Bhd announced that it has plans to develop about 1.62 million hectares of Malay reserve land in the country, most of which are idle agricultural lands. .
According to a media report in March 2018, there are over 31,900 listings in Malaysia on Airbnb, with the annual median host income averaging RM4,725. Hosts in Kuala Lumpur shared their homes with more than 507,000 guests in 2017, which is a 135% increase from the previous year, according to Airbnb.
This one day newly-designed program (the first for 2019) will start in Session One with an introduction (perhaps for some, a refresher) on the Malaysian Torrens system, the concept of security of tenure, the different categories of land titles, the four main recognized “dealings” under the National Land Code 1965 (the Code), the tenancy or leasing of Malay reserve land and the drafting of a sound lease agreement that protects both the landlord and the tenant.
In Session Two, the focus will be on dealing with a prospective tenant (including tenant screening and showing the rental property), the security of deposit, the rights and obligations of both the landlord and the tenant, followed by a detailed discussion of issues such as quiet enjoyment, duty to pay rent, effect of default in rental payment, distress actions, eviction proceedings and finally the examination of specimen agreements.
In Session Three, discussion will focus on the RTO schemes introduced by both PR1MA and the private developers and financial institutions, the lease purchase contracts (including the practice in UK and Australia), the private lease schemes (PLS) as introduced in the Medini area in Johore, reservations on the scheme as expressed by the HBA, expectation of a new law, the development of wakaf land and finally the development of Malay reserve land.
Finally, Session Four will wrap up with a discussion on the rights of parcel owners in strata developments to rent out their parcels to conventional long term tenants as well as to participate in the Airbnb short term rentals, their right to pay rent of their parcels to the authorities directly, effect of their default, the rights of co-tenants in cases of shared accommodation, the new Housing Policy and the future Tenancy Act, and finally a closer look at the tenancy legislation in Ontario (Canada) and Victoria (Australia).
|WHO SHOULD ATTEND|
|Interactive Lectures, Discussions and Practical Case Studies on all relevant areas to ensure participants grasp clearly issues presented.|