Authors : Wan Kamal Mujani, Rusnadewi Abdul Rashid , Wan Mohd Hirwani Wan Hussain and Noor Inayah Yaakub
Abstract: With the improving economic status of Malaysia, especially, in terms of personal property and wealth acquisition, problems and issues relating to devolution of properties have risen. In this regard, the law of gifts is recommended as an effective instrument to be applied by the people in Malaysia. Nevertheless in the case where the property is charged to the bank, one has no absolute right over it and consequently is unable to make any devolution without the bank’s consent. The bank would disallow the transfer to be executed with regard to charged property until and unless discharge has been made in satisfaction of the full amount of the loan or debt. This procedure gives the writer the impression that the present policy exercised by the bank declines to uphold the distribution of property through gift and thus, necessitates revision and amendment. Since, this study is a qualitative study, the approach applied is a content analysis methodology. A flexible method of interviewing is useful as the writer has as yet little understanding of the problem or situation due to the exploratory nature of this study. The interview was conducted with bankers, practitioners and some other relevant people in order to complete the study. Thus, this study is mainly done to identify the applicability of the concept of gift inter vivos in the Malaysian banking system as regards charged property. The outcome of literature reviews demonstrates that under the Malaysian banking system, a chargor is not allow to transfer his charged property. Additionally, under the National Land Code, 1965, the Land Registry has a power upon request by the bank to enter a caveat in order to put off the transfer. The concept of gift is extremely needed to be introduced into the banking system in order to avoid economic loss due to problems in estates distribution of Malaysian.
Wan Kamal Mujani, Rusnadewi Abdul Rashid , Wan Mohd Hirwani Wan Hussain and Noor Inayah Yaakub , 2012. Gift Inter vivos for Charged Property. The Social Sciences, 7: 196-199.