Law of Real Property and Landlord-Tenant Obligations
Legal framework
The exam tests the Malaysian real property and landlord-tenant framework as it applies to management: the National Land Code 1965, the Strata Titles Act 1985 and Strata Management Act 2013, the Contracts Act 1950, and the general law of landlord and tenant. You must distinguish freehold and leasehold, registered proprietor and occupier, and tenancy from licence. A tenancy grants exclusive possession for a term at a rent; a licence merely permits occupation.
Core obligations
- Landlord: quiet enjoyment, repair of the structure and common areas where covenanted, insurance, and compliance with statutory notices.
- Tenant: pay rent, use the premises for the permitted purpose, keep internal repairs, yield up at expiry, and comply with covenants.
- Rent and deposits: state the amount, due date, method, review, and deposit treatment. Security deposits are not automatic compensation for fair wear and tear.
- Remedies: forfeiture, distress where available, damages, specific performance, and the Strata Management Tribunal for strata disputes within its jurisdiction.
- Assignment and subletting require consent if the lease says so. Do not treat a licence as a tenancy to avoid stamp duty.
Worked example
A tenant withholds three months' rent because a leaking roof has damaged stock. The lease contains a landlord repair covenant but no rent suspension clause. At common law the tenant has no general right to set off rent unless the lease or statute allows it. The manager should advise the landlord to repair, document the loss, and tell the tenant to claim damages or seek relief rather than self-help. Withholding rent exposes the tenant to forfeiture.
Traps
Assuming a licence avoids tenancy law; missing stamping; ignoring notice periods; confusing forfeiture with termination; failing to check the strata by-laws and Tribunal jurisdiction.