LIM SEANG MEE V. KEEPAHEAD HOLDINGS SDN. BHD.

LIM SEANG MEE V. KEEPAHEAD HOLDINGS SDN. BHD.

Developer's consent to endorse a deed of assignment and to give an undertaking is discretionary and not mandatory under the Act or standard agreement; a developer may charge an administrative fee for performing such discretionary act but the fee must be reasonable — RM500 is reasonable in this case and RM2,000 is inordinately high.

Citation
LIM SEANG MEE V. KEEPAHEAD HOLDINGS SDN. BHD.
Parties
Plaintiff: Lim Seang Mee; Defendant: Keepahead Holdings Sdn. Bhd.
Court
Malaysian court
Jurisdiction
Malaysia
Judgment Date
1992
Procedural Posture
Originating Summons Land/conveyancing Dispute / Judgment on Originating Summons
Outcome
Originating summons allowed in part; defendant ordered to endorse and give undertaking upon receipt of reduced administrative fee; no order as to costs.
Legal Topics
Deed of Assignment, Developer's Consent, Administrative Fees, Strata Title, Housing Developers (control and Licensing) Act
Source Language
en
Land Law Housing Development Regulation Conveyancing Contract Law Deed of Assignment Developer's Consent Administrative Fees Strata Title +1 more

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Parties

Lim Seang Mee

Plaintiff

Keepahead Holdings Sdn. Bhd.

Defendant

Procedural Posture

Originating Summons Land/conveyancing Dispute / Judgment on Originating Summons

Legal Issues

  1. 1 Whether developer is legally obliged to endorse deed of assignment and give undertaking to deliver strata title and registrable transfer
  2. 2 Whether developer may charge an administrative fee for consenting and giving such undertaking
  3. 3 What is a reasonable quantum for any administrative fee charged

Ratio Decidendi

Developer's consent to endorse a deed of assignment and to give an undertaking is discretionary and not mandatory under the Act or standard agreement; a developer may charge an administrative fee for performing such discretionary act but the fee must be reasonable — RM500 is reasonable in this case and RM2,000 is inordinately high.

Court Disposition

Originating summons allowed in part; defendant ordered to endorse and give undertaking upon receipt of reduced administrative fee; no order as to costs.

Orders

  • Defendant to sign endorsement on the deed of assignment and to give a written undertaking to deliver the strata title and a valid registrable memorandum of transfer to the assignee upon receipt of RM500 administrative fee.
  • No order as to costs.