THE LEGALITY OF A PRIVATE LEASE SCHEME: PULL THE WOOL OVER THE PURCHASER’S EYES?
DOI:
https://doi.org/10.21837/pm.v21i27.1288Keywords:
Private Lease Scheme, freehold land, lessee, ownership, housing accommodationsAbstract
The developer transferred a 99-year lease to the purchasers in a PLS instead of transferring the property ownership. Upon lease expiry, the property shall be reverted to the owner. In Malaysia, the Housing Development (Control & Licensing) Act 1966 (HDA 1966) regulates that a developer must transfer property ownership to the purchasers. "Build and lease" under the PLS does not comply with the law. This article is a conceptual paper that employs doctrinal research to analyse the legal position of property sale under a PLS and examine its compatibility with the existing law. The Courts' decisions on cases related to a PLS property are analysed to determine the PLS's implication on the purchasers' interest. Ultimately, to safeguard the purchasers, the amendment of the laws is recommended as a legal platform to legitimise the PLS.
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