Vesting order in Malaysia is crucial in transferring an immovable property from one to another. This article explains what is it and how to apply for it.
What is Vesting Order in Malaysia?
A vesting order in Malaysia is a court order from the High Court of Malaya transfering ownership of property from one person to another. It is made following the land law, the National Land Code (Revised 2020).
It is usually used in the following situations:
Estate Administration
As part of the estate administration process, one of the administrator’s duties and obligations in handling the deceased estate includes transferring the numerous assets of immovable properties of the estate (if any) to the intended legal beneficiary and heirs following the applicable inheritance laws.
Usually, it is done after paying off the debts and liabilities of the deceased and making other lawful payments. All these are to respect the wishes and legacy of the deceased person and ensure compliance with the applicable inheritance laws, whether it is Islamic inheritance or intestate successions laws (for the deceased who died without leaving a will)
Usually after getting a grant of letter of administration (a letter of administration is used when the deceased does not leave a will and the estate is not a small estate), the administrator then applies for an order called a ‘vesting order’ or ‘distribution order in Malaysia’ under the Probate and Administration Act 1959 to transfer the assets, including immovable properties, to the legal heirs, including female heirs.
Trusts administration
It can also be used when the trustee appointed under the trust deed is intended to transfer the assets under the trust to the beneficiaries.
Liquidation
In a winding up of a company, the liquidator can also apply to transfer the assets of the company to it to pay off the creditors and prevent potential disputes.
Procedure for Getting a Vesting Order
The steps to get a vesting order in Malaysia usually follow this:
Application
The interested persons, such as executors or beneficiaries, through himself or an attorney/probate lawyer, should apply to the appropriate court, that is, the High Court of Malaya.
Depending on the situation, some of the necessary documents that should be submitted with the application include the death certificate of the deceased person, identification documents of the applicant and beneficiaries, together with court documents such as affidavits, which serve as testamentary dispositions.
Court hearing
The Court then fixes a hearing date to hear the application, and if the application passes court validation and complies with the procedural rules, that is, the Rules of Court 2012, then the Court will grant the vesting order.
Transfer of properties
Then, the vesting order is served on the relevant authority, that is, the land administrator in Malaysia. The authority will then register the transfer of the land to the right beneficiaries.
Timeline and Fees For Application
An application for a vesting order in Malaysia usually takes several months up to a year. As for the charges, they include legal fees, court fees, and disbursements and usually start from a few thousand ringgit.
You can contact us to get a quote for getting a vesting order in Malaysia or if you have a query on the letter of administration Malaysia cost, you can also contact us.
It is advisable to engage a lawyer for this to prevent any negligence and lawyers are familiar with the law and statutory requirements and the other succession laws, such as the Distribution Act 1958 (also known as distribution act in Malaysia for non-Muslims).
Conclusion
Vesting order in Malaysia is important to transfer the properties to the right person. If you are looking for an estate or probate lawyer in Kuala Lumpur, do contact us and our team will provide you with valuable assistance.
Frequently Asked Questions
1. What is a vesting order?
A vesting order in Malaysia is an order issued by the courts in Malaysia directing the transfer of immovable property from one to another person or organization.
