Johor Bahru Property Lawyer - Different between perfection of transfer (POT) and perfection of charge(POC)

These process need to be done simultaneously since it requires registration process for the Original Title at the Land Office. Perfection of Transfer will deal with the Developer while Perfection of Charge will involve the Bank as the other party. Apart from changing the ownership from Developer to the Purchaser, it is also a must to include the Bank’s name on the Title in order to protect their interest towards the Borrower. If the Purchaser is a cash buyer, then he can disregard the whole process of Perfection of Charge and to proceed only with Perfection of Transfer since no housing loan was involved hence there is no Bank’s interest that need to be protected at the first place. As a result, a cash buyer Purchaser can immediately collect the Original Title for their own safekeeping upon the registration at the Land Office. It is a different case with the Purchaser who is having the loan with the bank, they need to forward the Original Title to the Bank as security and they can only keep the copy of Title as a proof that the property is under his name. Here is a clear comparison for both Perfection of Transfer and Perfection of Charge:-

	PERFECTION OF TRANSFER	PERFECTON OF CHARGE
Process	To change ownership	To secure Bank’s interest
Documents involved	14A	16A
Party involved	Developer	Bank
Stamp Duty	Calculated based on purchase price	For stamping documents only

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