Property and divorce lawyer Johor Bahru

Under Malaysian law, the Land Code of 1965 rarely mentions tenancy, so we do not have a complete set of tenancy ordinances,
nor do we have a statutory standard lease.
We do not recommend that landlords and tenants casually copy the standard lease online
After all, there is no standard lease can hit the world, both sides must consider each lease has its own attention.


When drawing up any
lease,

the parties must first determine whether the lease is more than
three years old,
and a lease of more than three years is generally called lease, and under the Land Code of 1965, a lease for more than three years will give the tenant the right to register their interest in the landlord’s title (endorsement), known as Form 15A.
lease generally does not exceed 99 years. If part of the land is involved, it will not exceed 30 years.
The process of registration and return of lease will be subject to the Land Code.



The basic terms of a lease The basic terms

of a lease are common as follows:

  1. Location;
  2. The purpose of the lease;
  3. The start and end dates of the lease;
  4. Rent;
  5. Rent security;
  6. Water and electricity margin.

As for other matters, the relationship between the landlord and the tenant is left to the parties to

negotiate freely, and as to how the parties
should negotiate is subject to the Contract Act 1950
(Contract Act 1950), all obligations and terms are in accordance with the principle of freedom of contract under the Contract Law (Freedom of Contract), i.e. the parties are free to enter into contract terms within the limits of the law, as long as their contents do not violate laws and regulations and the public interest, the law recognizes its validity. In most
cases,
unequal terms often appear because the negotiating chips of the two sides are different (unequal bargaining of often).


Malaysia does not have a treaty act to prevent inequality, as the UK did,
and similar
laws usually appear only under the Consumer Protection Act 1999, but the relationship between landlords and tenants does not fall within the jurisdiction of the Consumer Protection Act.
Therefore, some people say that landlords and tenants who have a dispute can complain about the Department of Trade and Consumer is actually wrong.



Potential risks, responsibilities and exit mechanisms

So do you have any of the following potential risks when developing a contract?

  1. Is it the landlord who signed the lease? If not, does he have the right to sign a contract?
  2. Where is the landlord’s responsibility and what is the landlord’s maintenance responsibility?
  3. Does the tenant have the right to renovate or repair it?
  4. Who opens the account for the hydrometer? What should I do if I am in arrears?
  5. What costs must be borne by the landlord, such as land tax, house tax, fire insurance?
  6. Is the tenant liable for management fees?
  7. Where is the tenant’s power?
  8. Can you sublet enough? Can you be a second landlord?
  9. Does the landlord need to notify the rental room to be resold to a third party?
  10. In the event of a major disaster, who will bear the cost of repairing the house?
  11. Do the parties have the power to withdraw from the contract early?
  12. When the tenant withdraws from the contract, do you need to restore the decoration?
  13. What happens if rent is delayed?
  14. If rent arrears are owed, can the landlord come directly to replace the lock or move the tenant’s personal belongings?


Maintenance liability

Under the Common law, if the matter of maintenance relates to the structural nature of the house, it is generally the responsibility of the landlord.
Because any structural problem of a house can indirectly affect the value of the house, only the landlord can benefit from it. If the maintenance matter
is a consumption nature, such as changing the light bulb, generally will not have much impact on the value of the house, tenants can repair their own.
Therefore, if the tenant is asked to undertake any maintenance related to the structure, it is not legally reasonable.




Margin
In general, landlords charge tenants a margin
to ensure that the tenant fulfills their contractual responsibilities, usually divided into a margin of rent and a deposit for utilities.
In particular, when the
lease has ended, the tenant must restore the house to its good condition according to the lease.
In case of serious damage
or arrears
of water and electricity, the landlord has the right to withhold or deduct the security deposit so that he can compensate the landlord. The deposit will generally state that the
tenant may not use the deposit as rent unless the landlord personally agrees.



Stamp duty

So what exactly does a lease need to pay stamp duty?
Under Malaysia’s Evidence Act 1950 (Evidence
Act 1950),
any document requiring submission to the court as evidence must be paid under the Stamp Duty Act 1949 if there is a dispute between the landlord and the tenant and must be brought before the court for trial.
If stamp duty has not been paid
or the amount set by the Act has not been met, the document will not be admitted to the court as evidence.
Therefore, if the lease for stamp duty is not paid, it does not mean that the lease is
illegal.
However, if the parties must rely
on the lease as evidence, the parties must pay stamp duty and a late fine (penalty)
before the lease can be admitted as evidence in court.
Lawyers encourage both parties to draw up contracts that
must be handed over to the Customs Office to protect their rights and interests from time to time.






Unpaid rent If the tenant owes rent, the landlord may apply to the court under the Detention Act 1951 to enter the house and seize the tenant’s personal belongings for auction.

But if the tenant does not leave, the landlord must apply
to court for an eviction order under the Specific Relief Act 1950 to evict the tenant.
Landlords who change locks or lock tenants in their homes without permission may be sued for false imprisonment.



In summary, the lease may seem simple,
but there is a lot of learning involved, and both parties must carefully draw up the terms and things of the lease.
It is suggested that you may ask your lawyer to set out all the terms to prevent unnecessary disputes and infringement of your rights and interests.

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