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20180620 Can you find a substitute to take over your booking?

20180620 (Wed)

In case of wrong decision in making a booking. You placed RM5k for a property. However, you regretted afterwards. Can you ask a Negotiator friend to help you find a substitute?

You just want to take back your money… Or else it will be forfeited to the developer/vendor.

There are two part of this matter.

First. Asking help from a negotiator friend to find you a substitute.

Second. The negotiator friend representing you to contact third party.

Is there estate agency contract between you and this negotiator?

By definition, estate agency practice is selling, letting, purchasing or renting of a property. S22B (1A) VAEP Act, 1981. So, if there is a property, then whatever activity of selling, letting, purchasing or renting is to be governed by this law, with the exception of S22C. However, when there is no “property” then this law has no effect as well.

First. Getting a friend to help. This part has no problem. This negotiator can help in giving his advice. He might not be charging any fee by giving advice. If he charges, it would be a consultation, not estate agency. Because he has nothing to sell as yet.

Second. Representing you in contracting with a third party. This is a blur area. In real term, you have made a booking, but you are not yet the legal owner of the property. Even after signing of SPA, you are not yet the legal owner until all the obligations and consent had been obtained. For property with title, you need to have your name inserted into the document of title to be the legal owner. For property without title, the deed of assignment is to be completed. Consent of the developer and other authority must be obtained in order for you to transact the property.

Therefore, there is no property as yet in the above case. In this context, there is “nothing to sell” but just an arrangement to replace the original name in the booking form.

Such arrangement can be seen like I have a reservation in a restaurant, but I cannot go. Do you want to take over? At this stage, you have not ordered your meals. There is not yet any ownership of that food.

Hence, it is not estate agency practice as there is no property. For example, you accused him of rape. But he is NOT a man in the first place, thus not guilty of rape!

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