Covid-19: Waivers and Extensions following the Closure of Federal Territories Land Registry

Following the implementation of the Movement Control Order (“MCO”) which has since been further extended until 12 May 2020, the Federal Territories Land Registry (“PTGWP”) had vide its letter dated 24 April 2020 informed the Bar Council of the extended closure of its office until such time as when the MCO is lifted, and its treatment of certain transactions affected by the MCO.
 
Waiver of Penalty Fees Payment & Extension of Deadline
 
Where the deadline for the following matters falls within the MCO period, payment of penalty fees will be waived in respect of:
 
  1. late presentation of instruments/documents for registration at PTGWP; and
  1. late collection of the original issue document of title (‘IDT’) from PTGWP.
Furthermore, where the deadline for presentation of instruments/ documents or deadline for collection of the original IDT falls within the MCO period, an extension of three (3) months from the expiry of the MCO period will be granted.
 
Public Auction/Missing Title Investigations
 
Investigations conducted by PTGWP in respect of public auctions and missing original IDTs scheduled to take place during the MCO period have been postponed. PTGWP will make further announcements once the MCO is lifted.
 
Officer with Powers to Grant Waiver of Penalty Fee Payment and Extension of Deadline
 
A list of officers who have the powers to grant the aforesaid waivers and/or extension of deadline, as the case may be, is provided in the letter dated 24 April 2020.
 
Comments
 
PTGWP’s decision to waive late penalty fees and extend deadlines is commendable as parties affected by the implementation of the unprecedented MCO should rightly not be financially or administratively penalised.
 
Regrettably, the position in relation to extensions of the validity period of letters of consent to transfer/charge/lease etc. is unclear given that PTGWP’s latest letter dated 24 April 2020 had omitted mention of the status of letters of consent and also did not clarify whether the previous letter issued by PTGWP dated 22 April 2020 in respect of letters of consent remained valid and applicable.
 
Furthermore, it is unclear whether the waiver of the penalties on late presentation of instruments/ documents or collection of IDT is automatic or at the discretion of the PTGWP. Given that the delay in presentation or collection of the instruments/ documents or IDT during the MCO period is beyond the control of parties concerned, the waiver should be automatically granted and the need to submit applications for such waiver be dispensed with.
 
This Alert is written by Oon Hooi Lin (Partner) (oon.hooi.lin@skrine,com) and Catherine Looi (Associate) (catherine.looi@skrine.com) in the Real Estate Practice of Skrine.