This is a question in regards to Land Transfer according to the National Land Code in Malaysia.

QUESTION 1

Abu on 2.8.1990 entered into a sale and purchase agreement with Ahmad the registered proprietor of the property held under HS(D) 4114 FT 112 Town of Ratu (the Property) whereby Ahmad agreed to sell and Abu agreed to purchase the Property at a purchase price of RM 300,000.00. Abu nominated a firm of Solicitors Ms Mike & Co (the solicitors) to prepare the sale and purchase agreement and this was agreed to by Ahmad.

Abu upon the execution paid a deposit sum of RM 30,000.00 being 10% of the purchase price to Ahmad. The balance purchase price was to be paid by Abu on or before 11.11.1990 the completion date to the solicitors as stakeholder.

Abu obtained a bank loan of RM 220,000.00 from Kaya Bank Bhd) the Bank) and as security the property is to be charged to the Bank.

Abu paid the differential sum of RM 50,000.00 to the Solicitors before the completion date and the Bank's solicitors upon the presentation of the memorandum of transfer and charge over the Property released the loan sum of RM 220,000.00 to the solicitors on 11.11.1990 as stakeholders.

On 15.11.1990, the solicitors issued 2 cheques of RM 220,000.00 and RM 50,000 in favour of Ahmad. However, both cheques when presented by Ahmad were dishonored with an endorsement "Account Closed", and the solicitor had since disappeared and could not be traced.

Advise Ahmad.

(100 marks)