i wanted to buy sub sell property.As i know the property still under the loan with bank....

(1) What is the procedure & documention needed for the seller and buyer ?
(2) Who should pay for legal fee ? e.g SPA,MOT,Loan agreement,etc
(3) Who should pay for the broker or introducer fee ?
(4) Utility Collateral deposit - Seller will withdraw the deposit ?
(5) what should i know from the seller ?

Thanks.

(1) What is the procedure & documention needed for the seller and buyer ?
Put 2% deposit to lawyer or agent. Then let laywer deal with all things. You will need to pay 8% more in 2 weeks, and then balance 90% after 3 months.
(2) Who should pay for legal fee ? e.g SPA,MOT,Loan agreement,etc
You pay for your lawyer, seller pays for seller's lawyer.

(3) Who should pay for the broker or introducer fee ?
Seller.

(4) Utility Collateral deposit - Seller will withdraw the deposit ?
Yes
(5) what should i know from the seller ?
Do not trust seller and do not give money to him. Use lawyer

In a sub-sale that begins after an agent concludes the price and obtain the green light from both vendor and purchaser, the procedure is as follows:-

1. Purchaser to pay legal fees and disbursements according to the scale fees under the Solicitor's Remuneration
Order. The vendor can jointly seek the same solicitor to act in common, if he decides to save on the legal
fees. The disbursements will carry items (property with title) ie. CTC copy of title, (especially if the
final title is issued) or (property without title) preparation of Deed of Assignment. The other items will
include bankruptcy search (both vendor and purchaser) and the title search, printing costs, phone charges,
postage and miscellaneous fees incidental thereto.

2. The first 2% earnest deposit and the agent fees will be paid by the purchaser. The balance of deposit will
be handed to the solicitor who will hand this deposit to the vendor. To save time and for convenience
purposes, all the payments can be settled upon signing the sale and purchase agreement (SPA Agmt).

3. The SPA agreement ( to be completed within 3 + 1 extended months from the date of Agreement ) will need be
stamped within one month (to avoid late penalty stamping) after signing the SPA, which will also be dated on
the date the SPA Agmt was signed. The cost of stamping will be borne by the purchaser. If property comes
with title, purchaser to bear the cost for adjudication assessment from LHDN on the Memorandum of Transfer
(MOT). This will follow a scale fee calculation under the Stamp Act.

4. Where property is still under charged to the vendor's financier, the sub-sale solicitor will obtain the
redemption statement from the vendor's financier. At the same time, the purchaser will obtain loan from
a bank. EPF withdrawal can also be arranged. When the original SPA is stamped, this original SPA will be
retained by the bank. The EPF only need a copy of the stamped SPA.

5. A financier's solicitor will prepare the loan documentations. The purchaser will then sign and pay the legal
fees and disbursements to process the loan. The sub-sale lawyer will liaise with the purchaser financier's
solicitor for the necessary undertakings to effect the redemption of the property from the vendor's
financier which is still under a charge.

6. The reciprocal effect of money release from the purchaser's financier and handed to the vendor's financier
to discharge the charge and redeem the property to the purchaser's financier is all carried out in a series
of undertaking between the sub-sale lawyer and the purchaser's financier solicitor.

7. The power of attorney of the earlier charge will be revoked upon the discharge of charge.

8. If there is still outstanding amount owed to the vendor after redemption, this differential amount between
the balance of purchase price after deducting the deposit and redemption sum will have to be paid by the
purchaser to the vendor via the sub-sale lawyer's client's account. In fact,the redemption sum released from
the purchaser's financier will also have to enter the sub-sale lawyer's client's account before the sub-sale
lawyer issued a cheque for the same amount to the vendor's financier.

9. An honest sub-sale lawyer will conduct and complete this task as soon as the redemption sum is released form
the purchaser's financier. As such, no interest is earned in the solicitor client's account since this is a
current account where cheques are issued and not saving nor a fixed deposit account.

10. By then, 2 months would have passed and the sub-sale lawyer would have to proceed to seek assessment for
adjudication of stamp duty on the signed and dated Memorandum of Transfer. An important point to note is
that the date on the MOT must be dated within the 3 +1 months duration. Need not be on the same date of SPA
because the registration of transfer will have to be effected within three months from the date of the MOT
or else late penalty will be incurred. Hence, the MOT need not be dated as early as the date of SPA.

11. The purchaser's solicitor will enter a charge and this will correspond with the completion of the
adjudicated, stamped and signed MOT from the sub-sale lawyer. The MOT and the charge of the purchaser's
financier will be registered simultaneously.

12. The keys will be passed to the purchaser and hence this complete the sub-sale purchase.

13. Where property is without title yet, the Deed of Assignment is applied.

Excellent post. Very useful. Thanks Raymnond.

Besides the above mentioned info...any other info i need to consider before buying sub sell property ?

The illustrations above is sufficient for basic understanding.

So far, there is no academic progress yet to 'upgrade' this field of understanding.

Unless the reader can recommend a source information and willing to share.

i had paid my earnest deposit (5% of the selling price)...

(a)i intent to move in to the property before MOT completely done, is posiible for the seller to change me rental until MOT completely done ?

(b) Any possiblelity for the selling price higher that the market value given by the property valuer ?

Since you have paid the first earnest deposit up to 5% of the purchase price, (excluding the agent's commission), the remaining balance of the 5% deposit will need to to be settled as well to the vendor at the time of the signing of the sale & purchase agreement.

In practice, it seems agents sometimes retain the initial earnest deposit until the full completion of the purchase and make the necessary deductions towards their commission.

Whichever way this works, ensure your sale & purchase agreement is clear on the balance and the total deposit is made with the knowledge and understanding from both the vendor and purchaser. The passing of monies will need to be supported with a letter stating clearly the deposit handed to the vendor. ( To prevent unnecessary hassle )

Then, financing and loan need to be processed.

Your solicitor should check and prepare the clauses in the agreement according to the usual conduct of a sub-sale transaction. Since made to understand that as you have stated, " your intent to move into the property before MOT completed," the definition of your intention of what constitutes completion must be defined accordingly. For example, do you intend to move in at the time the MOT is stamped, adjudicated which is the earliest stage but is not completed per se since the MOT needs to be presented for registration. Upon registration, there will be at least 3 months before the registration is finally completed.

Hence, if your intention is to move in within 2-3 months after signing the sale & purchase agreement, then, the preferred choice of words will be according to the 'availability of the MOT rendered valid and effective a transferable instrument of dealing' since by stating so, this carries the meaning that you wish to move in within the above period of time. This is my suggestion.

As for the charging of rental back to the vendor, if the purchaser intends to do so, then, the pertinent question is whether the purchaser is prepared not to accept the passing of property yet (quite extraordinary) at the time of signing the sale & purchase agreement since the whole purpose of placing the earnest deposit is to secure the intention to purchase property with title free from encumbrances, which includes the passing of property.

In law, the differences between passing title and property is almost simultaneously together, but the difference is that title comes with ownership whereas property comes with the beneficial interests which is recognised as an equitable interests that comes with some interests that the purchaser is a bona fide purchaser for valuable consideration, not just a probable purchaser acting in good faith. The National Land Code effectively puts the purchaser in good faith when paying the earnest deposit since registration of title is conclusive and indefeasibility of title therefore gives certainty to any purchaser to believe what they see on the document of title wherein the particulars can be checked via a private land search.

Hence, even if the vendor do allow you to move in early, unlikely rental can be enforced via the sale & purchase agreement. However, one may on good conscious pay some rental within the interim period especially if the purchaser intends to purchase to stay for sure. Don't think the rental can even be a warranty attached to the property. The rental is more on good faith and understanding, but still a side issue. However, care must be taken not to confuse the inclusive of rental from the interests charged for the extension of one month after the three months to complete the sub-sale transaction. Overall, the duty of care of the solicitor is to ensure all the undertakings are completed and the monies transacted accordingly to prevent much hassle. (No one says this will be 'problem free')

The selling price will depend on factors like location, available infrastructure, amenities, commercial or industries ,within city assessibility by public transport with convenience and the land price after development into housing accomodation. Also, the local municipal council in taking care of public amenities and recently, cleanliness on the eatery food stalls and areas are equally important since maintaining hygiene and a safe and friendly environment will contribute to a successful development for the residents overall.

This are the points which will contribute to good pricing in time to come.

Hi Raymond,

Can I ask you a question regarding home loan redemption.

I sold my house through POA and have just received redemption amount credited into my home loan account. I sold the house for 175K, outstanding home loan 90K (already zero-rized now), deposit was 20K. What happens to the balance of 65K (or less after deducting fees)? Do I get it at the same time when the 90K is redeemed?

I am a bit worried coz there has been lack of communications with my appointed POA.

Thanks in advance.

If you don't mind, is the abbreviated 'POA' representing another way of calling a personal assistant/agent ?

By the usual way and status quo of matters, a sale & purchase agreement supersedes all transaction and
what transpires from the beginning to the completion of a sub-sale.

Check the terms and conditions in your sale & purchase agreement. Usually, a 3 + 1 month is the period for completion.

Your solicitor should undertake the necessary obligations to hold the balance of purchase price as a stakeholder. When the keys are passed to the purchaser, then, the final balance of purchase price should be handed to the vendor at the completion date.

Check with your solicitor again.

Sorry...
I have appointed a close relative as power of attorney to handle sale of my apartment. I have not contacted anyone else as I am currently overseas.

I logged into my home loan account (online) and found that the outstanding loan has been deducted (no more loan to pay) and fee for redemption statement has also been charged earlier.

Do you mean the balance of 65K that I should get back will take 3+1 months from the day s&p was signed (early Mar 10)?

Thank you very much for your help

That is what it is according to what should be
in the contents of a sub-sale & purchase agreement
between a known purchaser and vendor.

Seems that you don't even know who the purchaser
of this property of yours.

Actually, if the title is under your name, only you
can sell as the rightfuly vendor.

The power of attorney cannot substitute the name of the
donee having the registered title belonging to the
rightful owner as the registered proprietor of property.

This is the difference between power of attorney and title.

Furthermore,power of attorney are not trust instruments.
Only a power to transact under the authority and consent
of the owner. Therefore, your consent to sell as the proprietor
is mandatory not coincidental.

As a seller, is it normal to request for the balance of redemption sum to be paid in the form of bank draft and held in trust by seller's lawyer ? My lawyer is someone whom I don't know much about him.
He is against my idea and giving explanation that it is unsafe to ask for bankdraft and bankdraft can be cancelled by purchaser.

Only if the applicant revokes the bankdraft, a bankdraft is a legal tender
which is as good as cash.

Also, seems strange for the purchaser's bank to issue a bankdraft without standing
instructions from their panel solicitor.

Otherwise, better not make any assumption.

In my opinion, your solicitor should have obtained the redemption statement from the
vendor's financier to check how much outstanding differences remain to be settled by the purchaser.

Hence, your concern is best looked after by the bank already.

A little bit of faith in your solicitor and the bank will work.

hi,

Im currently in the midst of selling my condo.But unfortunately my buyer loan has been rejected coz developer has been sued before...according to what my agent said.
Is it possible for this to happen?
BTW,strata title has been issued out recently but yet to transfer coz i want to direct transfer to my buyer.

fyi,
my unit is freehold and i bought it under bumi price.
my buyer is a non-bumi.

Any information on this matter is highly appreciated.

thank you.

If you wish to sell your property you can find a buyer yourself or use an estate agent. Before making a decision you should consider how much each method would cost and how much time you have available.

If you wish to sell your property you can find a buyer yourself or use an estate agent. Before making a decision you should consider how much each method would cost and how much time you have available.

thanks for giving this information.

I would like sell my appertment at Damansara Damai, Petaling Jaya

hi, i can help you to sell ur apartment.Did any agent servicing you now?