Bare Trust in Malaysia

In Malaysia, the term Bare Trust is used in Land Law to refer to the position when the purchaser has paid the full purchase price but the memorandum of transfer has not been presented for registration. The vendor here is said to hold the land in question as trustee for the purchaser. (Temenggung Securities Ltd v Register of Titles Johor & Ors [1974] 2 MLJ 45 FC ). The vendor becomes a bare trustee fot the purchaser with the beneficial ownership in the land passing to the latter where, under all the circumstances of the case, specific performance of the contract will be granted by the court.

case: Ong Chat Pang v Valiappa Chettiar [1971] 1 MLJ 224 FC.
"... the point at which the vendor becomes constructively a trustee for the purchaser is reached only when he was done all that is necessary to direct himself of the legal estate by executing a valid transfer of the land in favour of the purchaser...a purchaser does not get a title until the vendor has done all that is necessary to perfect the purchaser's title".

There is 4 conditions that the purchaser must fulfill in other to make the vendor as a bare trustee for him:
(1) there is an existence of contract sufficient in form & substances.
(2) the purchaser has carried out N fulfill all obligations under contract.
(3) the vendor must have the title of the land
(4) vendor has no duty to perform other than those of executing the transfer and perfecting the transfer document.-:>

Relate cases:
-Rayner v Preston
-Bachan Singh v Mahinder Kaur & Ors [1956] MLJ 97