Property in Malaysia for sale and rent | Buy, Rent and sell real estate and homes

I have view a second hand double storey link house and has agreed to purchase it with the owner, no agent is involved in this deal. Before S&P, banker requested photocopy of previous S&P and photocopy of title for loan application because i need check whether can i get house loan for this purchase. I sent my request to the owner but the owner said can provide me the copy of title but not the copy of S&P (his reason is because the S&P is P&C) unless i sign his letter of offer with 2% deposit and the balance 8% upon S&P. The owner also said it is not legal to give me a copy of the previous S&P. I refuse to pay the 2% and offer him that he can continue to have activities or contact with interested buyer or agent before i get the loan approval from bank which will take 3weeks time then 10% upon S&P. Kindly advise me the actual legal process to purchase a second hand property urgently.

Hope it helps.

Since it is landed property, the only thing that the bank may want to see the original S&P is that the master title has yet to be subdivided. If it has already been subdivided (in your case, the owner was happy to give you the photocopy title), then there isn't really a need for you to see his S&P as he rightly said it is P&C. Banks would not have demand S&P from you unless that banker is a junior banker with little experience.

The seller demand 2% earnest money is quite reasonable. Unless you have no faith in getting the bank loan, paying that 2% to secure the property is quite okay. In my cases, if I really like the property, I would pay more than 5% of the earnest money, that is to prevent the owners from changing their minds later on.

I hope the above helped.

Hi...

Normally before getting the documents from the owner, the owner will request for some earnest money, to show that you are really interested to purchase the property.

What we do in our Letter Of Offer is when you pay the 2% earnest money, we will add a term whereby if you cannot get the loan (with proof from the bank), then the 2% earnest deposit shall be return to you.

In the event, the loan is approved but you change your mind, then the owner will forfeit the 2% earnest deposit.

The earnest deposit is to make sure that the owner really want to sell to you and also to ensure the owner that you really wanted to buy.

You can ask also your lawyer to prepare the letters.

The bankers wanted the old S&P and a copy of the seller's NRIC is to make sure that the property really belongs to the right ones. They need the details so they can check the value of the house now.

Hope this help.

Thank you.

Regards,
Mdm Koo

It is better for you to pay the owner earnest deposit of 1%-2% to secure the property as Mdm Koo said. The only problem is, you didnt go through an agent and you get it directly from the owner, so for safety of your earnest deposit, get a lawyer to prepare a letter, IF the owner refuse to refund the money for you when you fail to get a loan, at least you have the letter to sue him back.

Actually, the individual title does include the current owner's name and IC. Get a copy of the title is sufficent, the land size, title number, registered owner name, land detail and land grade are all in there.

Tan H.H.
OCBC Bank

hi Mdm Koo,

Regarding the 2% earnest money, if we pay the 2% by using cheque, what NAME should be printed on the cheque? is it Vendor (seller name) / Vendor lawyer firm name?

thanks
LING hong wen