1st June, 2021

Dear Members & Pupils of the Selangor Bar,

The Conveyancing Practice Committee Selangor Bar (“CPC of Selangor Bar”) led by the Chairperson, Nurul Muhaniza Binti Hanafi, had a meeting with the Lembaga Pembiayaan Perumahan Sektor Awam (“LPPSA”) on 23rd April 2021. The CPC wishes to update members on the following matters:

Improvements to the LPPSA Drop Box system

1. During the MCO period, the LPPSA introduced a “drop box” system for solicitors to drop documents in the designated box under the supervision of LPPSA officers. The CPC proposed for a better and more secured standard procedure to be implemented as soon as possible and LPPSA has agreed to the proposal to provide a standard format for the “acknowledgment slip” upon receipt of the security documents submitted by the solicitors via the drop box at LPPSA so that solicitors would have records and proof of submission of such documents.

The Selangor Bar Committee has just received notification from the LPPSA regarding the above.

Kindly click on the link for the said notice and manual.

Notis Makluman Penggunaan Sistem Pengesahan Penghantaran Dokumen Ke Kaunter Pusat LPPSA Dan Manual Penggunaan Sistem Pengesahan Penghantaran Dokumen Ke Kaunter Pusat LPPSA

Land Search for application of loan and execution of loan documents

2. The LPPSA sets a requirement for Land Search for the application of the loan approval check list. LPPSA clarified that in certain cases, they may need to request for a copy of the latest land search since the title particulars of the property might differ from the information on the photocopy of the issue document of title provided by the applicant/borrower. CPC requested that the same Land Search is permitted to be used for execution of the loan documents purposes and this has been agreed to by LPPSA. Members are advised to take note of this.

Expediting redemption sum for contra payments

3. LPPSA has informed us that the LPPSA has improved its “contra payment” or redemption statement system. This improvement is aimed to reduce the backlog and to auto update LPPSA's system. This would expedite the time frame for redemption sum for “contra payment”;

4. For the redemption payment, it may be made online via MayBank2U, CIMBClicks or JomPay. Solicitors can refer to the remittance procedure as provided in the LPPSA website;

Updates by LPPSA to be relayed to members

5. Effective from 3.4.2021, LPPSA has started issuing 2 types of email notifications in respect of the approval of disbursement of the loan/facilities. The registered users, i.e. the respective solicitors and the borrower(s), will be notified via email upon the approval of the disbursements and upon the monies having been credited into the Borrower(s)’ account;

6. The registered solicitors must ensure that they adopt the format of the Form 16A /Memorandum of Charge as provided in the Jurisk System;

7. The registered solicitors must notify LPPSA of their latest change of address of the firm to avoid any complications or missing security documents;

8. For perfection of charge matters, LPPSA requests that the solicitors in charge are to complete the checklist system in the “Jurisk System”;

9. The LPPSA has requested the solicitors in charge to return the security documents for LPPSA’s safe-keeping soonest possible and not more than 3 months from the final Advice to Release;

10. The LPPSA has requested for the solicitors in charge to personally ascertain the identity of the borrower(s) and to attest the execution of the security documents by the borrower(s). This is to avoid instances of fraud as LPPSA has detected a few attempted fraudulent cases whereby some borrowers have denied applying for LPPSA loan facilities;

11. The LPPSA will usually update its system of the receipt of the security documents within one (1) working day of LPPSA’s receipt of such submission and solicitors are able see the log entry by the LPPSA officers in the Jurisk System. Solicitors are advised to follow up with LPPSA in the event that the receipt is not updated in the Jurisk System;

12. As at to date, LPPSA has about 3,000 registered solicitors with LPPSA and the registered solicitors are required to open an account with Juris Technologies Sdn Bhd in order to access the Jurisk System and the security documents are to be downloaded from the said system;

13. Registered solicitors are to required to update reasons for delay in the Jurisk System and provide/attach documents in support, if any. This is for the benefit of the solicitors in the event the delay is caused by other factors which are beyond the control of the said solicitors;

14. The Jurisk System provides solicitors’ guidelines/user guidelines and solicitors are advised to access the guidelines as provided in the system;

15. Solicitors are reminded to conduct a bankruptcy search on borrower(s) and notify LPPSA of any bankruptcy issues. LPPSA has highlighted that there are cases where solicitors have advised release of the facilities even when the bankruptcy search results on the borrower or the vendor clearly show that the borrower or the vendor is a bankrupt;

We hope the information provided in this circular is of help to members.

Thank you.

Kokila Vaani Vadiveloo
Selangor Bar Committee


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