Posted on April 7, 2020 by Nadzirah Binti Abdul Razak @ Lapochik
Deed of Receipt and Reassignment is to be treated as the same process as Discharge of Charge except that this will not include the redemption of Original Title from the Bank. This is because when the Purchaser/Borrower bought the property, the Individual Title or Strata Title is yet to be issued so they will use Deed of Assignment by way of security in order to protect the beneficial interest of the Bank for the assistance given to the Purchaser/Borrower in purchasing the property. Normally, the Purchaser/Borrower will signed the Deed of Assignment documents together with Power of Attorney upon receiving the loan from the bank. These documents worked as a protection for the Bank to sign the Perfection of Charge documents on behalf of the Purchaser/Borrower (if the Purchaser/Borrower is missing or do not have money to pay the fees) once the Individual or Strata Title has been issued.
Therefore, once the Purchaser/Borrower already signed this Deed of Receipt and Reassignment documents, it can be a proof that the Purchaser/Borrower already settled the repayment of the housing loan with the bank and the Power of Attorney given to the Bank earlier will also be revoked.
Most importantly, once the Individual Title or Strata Title has been issued later, the Purchaser/Borrower must prove to the Perfection of Transfer’s solicitor that the loan is fully settled by showing this Deed of Receipt and Reassignment documents and Perfection of Charge should not be done anymore. As a result, upon the registration of the Purchaser’s name on the Title by Perfection of Transfer, the Purchaser/Borrower can collect the Original Title for their safekeeping and don’t have to forward the same to the Bank anymore.
• Basic process for Deed of Receipt and Reassignment
1. Deed of Receipt and Reassignment documents signed by Purchaser/Borrower
2. Deed of Receipt and Reassignment signed by Bank
3. Stamp relevant documents at LHDN
4. Revoke Power of Attorney at High Court
5. Purchaser/Borrower can collect all Original Documents for their safekeeping
• Documents needed for Deed of Receipt and Reassignment:-
1. Identity card of Purchaser/Borrower
2. Prove of settlement of the housing loan from the Bank (if any)
3. Other relevant documents
• What type of property under discharge of charge
- master title property
Disclaimer
All data and information provided on this site are for informational purposes only. HS LIM & CO makes no representations as to the accuracy, correctness, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. If you are in any doubt, please contact us for further information.