KUALA LUMPUR: A businessman who bought a commercial property 16 years ago was shocked to learn it was registered as a Bumiputera quota lot, a restriction that only surfaced when he tried to sell the unit recently.
Datuk Patrick Sim purchased the Petaling district property in 2010 for RM2.4mil through a real estate agent. He remained unaware of the restriction until Aug 22, when his lawyer received a clarification letter from the developer.
The revelation derailed an active transaction.
“My prospective buyer and I signed an agreement on July 30, and the buyer paid a 3% deposit. However, the deal stalled after the lawyer informed us that the buyer must be a Bumiputera,” Sim said during a press conference at Wisma MCA on Thursday (Sept 10).
“When I bought the shop 16 years ago, it was not classified as a Bumiputera lot. Neither the developer nor the lawyers informed me otherwise,” he added.
Suspecting foul play, Sim lodged a police report at the Cheras District Police Headquarters on Sept 7, urging authorities to investigate potential fraud regarding the title's status.
MCA Public Services and Complaints Department head Datuk Seri Michael Chong called on the police to determine if the case involves cheating under Section 420 of the Penal Code, questioning how the developer could sell a restricted unit to a non-Bumiputera without the required conversion approvals.
“We want the police to investigate whether there was an intention to cheat,” Chong said, adding that the issue might extend to other unit owners in the same development. He urged property buyers to independently verify their title statuses and noted that MCA is considering referring the handling lawyers to the Bar Council over potential legal negligence.
Echoing these concerns, Strata Owners Association Malaysia president Datuk Theng Book advised prospective buyers to secure written confirmation of a property's status and retain independent legal counsel to conduct thorough title checks before finalising transactions.
