Cutting cost with 'DIY law'

Many people dread going to the lawyers as it means forking out hundreds if not thousands of ringgit in legal fees for their service.

However, Malaysians wishing to prepare uncontested wills and probate, documents on tenancy agreement, purchase or transfer of property, or even divorce petitions can be spared the dreaded trip to legal firms soon with the "Do-it-yourself law" set to become a reality, Nanyang Siang Pau reported today.

The "DIY law", which will be available free of charge online, will change the way how common legal matters can be dealt with.

According to the report, Bon Advocates, which has been pushing for "DIY law", is coming out with template agreements, allowing consumers to prepare wills and handle property purchases, loan agreements and divorces without relying on lawyers.

For example, the standard legal fee for a sale and purchase agreement for a property valued at RM150,000 is RM1,500.

With the DIY law, a property buyer can save this amount by filling out the relevant forms made available online.

Similarly, for wills, one can save between RM300 and thousands of ringgit the DIY way.

Edmond Bon of Bon Advocates told the daily that lawyers should be fighting for justice and rights of the people and not make profits from petty legal matters.

"Making wills, tenancy agreements, property purchases and transfers, etc can be done using template documents provided online, without the help of lawyers," said Bon, whose firm has been working with some law students on the DIY law on pro bono basis.

Bon said DIY law is a new concept in Malaysia, but it is common in the United States, United Kingdom and Singapore.

US and UK's Rocket Lawyer and the Law Canvas of Singapore are common DIY law, the human rights lawyer pointed out. - By The Sun Daily

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High cost under new law may affect property investors' profit margin

Strata regime: Return on investment will always be a consideration as higher cost would certainly affect the possible margin of profit in today’s buyers’ market.

Counting the cost: Investors' profit margin may be affected under new law

PROPERTY has topped the list of investment options for those who have extra cash. Property investors and those who prefer other instruments, are trying to gain maximum returns on their hard earned money.

Property investment has gained momentum because of the price boom in the last 10 years as seen by the massive development and high take-up rate.

Because the bulk of these properties are stratified residential properties, legislations have been updated for a more efficient delivery of strata titles. Essentially, these new legislations provide more protection to house buyers.

Among these are the Housing Development (Control and Licensing) (Amendment) Act 2012 (“HDAA”), Strata Titles (Amendment) Act 2013 and Strata Management Act 2013 (both “Strata regime”). The Strata Management Act came into effect on June 1, 2015.

Return on investment will always be a consideration as higher cost would certainly affect the possible margin of profit in today’s buyers’ market. While having new legislations are good news for house buyers, these new legislations could also impact the cost of any investment in strata residential property.

For a start, there is now higher compliance cost for the housing developers, as there is an increase in the amount to be deposited in the housing development account.

There is also the new requirement to maintain the common property defects account prior to the delivery of the keys to the house buyers.

This means that under the new regime, developers will have a higher compliance cost, which may indirectly result in fluctuations of property prices. This means developers need to be financially strong and there is the possibility that they may incur financial costs as they try to maintain a feasible and sustainable cash flow.

This will discourage the smaller players. Having fewer choices is definitely not good news for the investors.

In addition, there is also a higher transactional cost for those who plan to flip their properties.

The earlier issuance of strata title upon delivery of vacant possession will require investors to fork out expenses related to the stamp duty before selling the completed property to the next buyer.

In other words, there is no longer savings on the stamp duty on transfer for those investors who bought directly from the developers. This lowers the return on investment, not to mention having to bear with the longer and complicated process of double transfers for those who are eager to dispose of the property on delivery of vacant possession.

The new template of the prescribed sale and purchase agreement HDAA (Schedule H) also requires that the payment shall be in compliance with the schedule of payment and no person shall act as stakeholder to collect such payment.

In simpler sense, the developer is no longer allowed to collect booking fee from the investors for their preferred unit and the unit they have selected is only secured upon the signing of the sale and purchase agreement with the 10% payment.

As such, there is no turning back once you have signed on those dotted lines and there is no way to secure your unit of choice with lower amount while you are working on the full 10% deposit.

Another cost that will burden property investors is the maintenance fees charged by the management office when they get their keys to their properties. The new strata regime has provided for the possibility of limited common property usage and the exclusive use of certain facilities – a privilege – which comes with a price tag. If the management adopts any limited common property, they are looking at a two-tier service charges and sinking fund, with one for those who have the use of one set of common properties and the other for the use of limited common property, to be enjoyed only by a selected few.

Despite monetary cost, time cost is also a factor for investors. A purchase into a strata development now calls for more involvement in the management as the management corporation of the development is formed much earlier now with the possibility of having the title and the keys delivered at the same time.

The new strata regime requires the active participation of all owners, as the tenure of the office bearer is limited. Other owners are required to sit in the management corporation committee on subsequent years. Despite the fact that taking up the responsibilities of committee members offers monetary gains, any misconduct or negligence may now result in a penalty.

The new restrictions on advertisement and representation by the developers also mean that the investors are required to spend time on research and do their own due diligence to better understand the investment. There is no longer permitted representation such as time/distance from a particular venue, projected monetary returns/gains and rental income. Thus, before making decision to invest, the consumers have to do more personal research on the investment.

While property investment remains feasible over the longer term, investors are advised to take these legislations into consideration to come out with a realistic projection of investment return.

By CHRIS TAN Real Legal

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Light shines brightest when it is dark

THE one time I felt really scared in an unfamiliar physical environment was many years ago when my friend and I got lost in Taman Negara.

Because of a wrong turn, what was to be a simple two-hour track to a riverside lodge took us nearly eight hours. The jungle was getting really dark. The leeches were having a feast. And the sounds of wild animals in the distance made us shiver in our pants.

We eventually found our way to the lodge and quickly lit a kerosene lamp we had brought with us.

In the heart of the deep jungle, the light was truly reassuring. After a dinner of delicious instant mee and a tin of sardines, we turned down the lamp and lit some candles to illuminate the lodge.

Those of us who live in towns may not fully appreciate the beauty of a lit candle in the midst of total darkness. But it is really true that light shines brightest in the dark.

Life is not all sunshine. There are times when we feel like we are walking through very dark valleys.

It could be due to the loss of a job, the death of someone very dear to us, or a recurrent illness where treatment seems to bring more problems than the disease itself.

At times like this, it is only natural that we yearn to see the light.

A person lost at sea is encouraged when he sees the beacon of light coming from a lighthouse. It signifies hope. But the light that we seek at times like this is not necessarily from a physical source. It can come in the form of someone who is prepared to drop everything to help us navigate through our tough times.

It could be someone willing to listen to you, with a box of tissue nearby, without saying a word.

I have, in the past few weeks, felt like I was walking through a very dark valley with no end in sight.

But it is always when I am at the lowest ebb that something invariably happens – a light shows up to brighten up my life.

Last week, I went to see my dentist and told her I would be a real challenge to her this time.

My mouth can hardly open. And from what the doctors tell me, and my own research on the Internet, this is one of the most troublesome side effects of radiotherapy and chemotherapy.

I have been having trouble eating, and even brushing my teeth is difficult. I wondered how my dentist would be able to use her tools to fix whatever problems she could find. But she patiently went to work, and spoke to me gently with reassuring words.

The session lasted close to two hours and she managed to do five fillings. It was amazing!

She told me not to lose heart over my mouth issue. Take things one day at a time, she said. “You will be fine.”

And when I went to pay, the clinic assistant smiled and said: “Doctor says no charge.”

Though my dentist knew I could afford the bill, she must have wanted to do something to cheer me up.

It was not about the money, but a reminder that I do not walk alone.

I won’t deny her the opportunity to be the giver, and for me to be the blessed recipient. There is joy in both giving and receiving, if done in the right spirit.

I got into my car and tears just streamed down. I had a good cry before I made my way back to work. Suddenly, the dark valley I had been walking through in recent weeks didn’t seem so dark after all.

By SOO Ewe Jin

Executive editor Soo Ewe Jin appreciates being on the receiving end of kind words, sincere fellowship and heart-to-heart conversations, underscoring the fact that the best things in life are not only free, but priceless.

The views expressed are entirely the writer's own.