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TOPIC: Purchasing prior to obtaining state consent!

Purchasing prior to obtaining state consent! 5 years 6 months ago #5969

I hear that in some states it can take over 6 months to get state consent, however, it is possible go ahead with the purchase and obtain a Deed of Assignment. What are the risks involved if state consent is not forthcoming? Is it not possible to hold the property and later re-sell using the Deed of Assignment? After all there are not many sellers who are prepared to wait that long!
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Re:Purchasing prior to obtaining state consent! 5 years 6 months ago #6076

  • farinfay
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Pete

Please see my comments in italics below. I hope it helps...


I hear that in some states it can take over 6 months to get state consent, however, it is possible go ahead with the purchase and obtain a Deed of Assignment.
I think in KL it takes about a month if you keep chasing them, Selangor not much more. The 6 month thing is a few years old

What are the risks involved if state consent is not forthcoming? Is it not possible to hold the property and later re-sell using the Deed of Assignment? After all there are not many sellers who are prepared to wait that long!
Getting state consent is a formality, as long as the property is above the minimum price threshold. Most sellers know this and will be happy to wait as they know it's just a one or two month delay. Of course if the seller has two offers, one from a local and one from a foreigner they will prefer the local. But if they only have your offer you will find they will just take it. In most agreements it will say that if you do not get state consent the money will be returned to you. Most sellers will agree to this, but you need to make sure it is in your letter of offer.
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Re:Purchasing prior to obtaining state consent! 5 years 6 months ago #6111

For a moment I was puzzled with both the Q & A here.

There is no connection between consent and assignment since these two areas are not linked together.

Assignment is by way of deed hence the term used, deed of assignment is meant for transaction involving property without title.

For example, A ( vendor ) enters into a sale & purchase agreement with B (purchaser).
For property without title, the passing of property and title is by way of assignment since the rights, title and interests on the property is assigned by way of a deed of assignment between A and B.

Stamping and adjudication assessment is carried out upon the original deed of assignment and this deed of assignment is usually retained by the purchaser's financier when the purchaser takes a loan from the financier.

Another deed of assignment between B and B's financier is imminent.

When title to the property is issued, then, the transfer between the vendor and purchaser will need to be carried out. All adjudication fees and stamping upon the deed of assignment will be produced to show no arrears before the transfer is effected.

As for State Authority consent, this is a condition upon the land.

This is where the State authority consent is required (especially for leasehold property) before the property can be put to dealing between the vendor and purchaser.

State consent does not meant state intervention. The names of the parties to the agreement will still be under the names of both the vendor and purchaser.

For a purchaser who have entered into a sale & purchase agreement with a vendor, the assessment form PDS15 will contain a 12 months period before the next available transaction. If the purchaser wishes to resell before the expiry of this 12 months period, sufficient good reason would be required.
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