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I and vendor already sign the SPA for RM148k.Now the problem is the agent.One day one story case.Firstly, the agent told me that the price for this property is RM175k.So the agent commision is Rm175-Rm148=Rm27k.This Rm27k i promise him(agent) will paid once i get the original geran or title.According to him(agent) the geran can get within 3months due to i buying this property cash using my EPF and saving.
The problem is after signing SPA, he(agent)go and hang the rental board to this property without informing.I not happy with his attiude. So i decided not to buy this property.Would i get back my 30% payment which is Rm30k paid under vendor name trough lawyer?. Thanks.
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1 Answer

<en>David</en> <en>Wong Lai Kwong</en>
Replied
Hi Usha,
What you explain sounds like a shady deal indeed.

1.A buyer must hire their own lawyer to protect their purchase. If you have paid lawyer fees then the lawyer you hired must protect your interest by conducting due diligence on the ownership, the property and outstanding loan by Vendor, if any.

2.The common SPA will require the buyer to pay 10% as downpayment (including the 3% earnest deposit paid) upon signing the SPA. In your case the purchase price is RM148,000 and 10% should be RM14,800 only.

3.There are exceptional cases where the Vendor requires higher down payment due to urgent sale with a low price. This is where the buyer has to be extremely careful and get the lawyer to verify the outstanding loan amount by the Vendor first. If the selling total price is less than the outstanding loan amount then buyer should not pay any money to the Vendor but instead to the bank.

4. In any case, it is common that there is a clause in the S&PA that allows only 10% of the downpayment to be forfeited if the Purchaser do not complete the purchase of the property.

5. The issuance of the Geran or title has nothing to do with whether you are buying cash or not. Most landed properties (if not all) would have already been issued with individual title deed while apartments/condominiums sitting on master title will be issued with strata titles if the developer had complied with all statutory requirements.

Please request your lawyer to review your SPA and advise you on your rights, obligations and remedy.

David Wong
Principal
QUANTUM Real Estate
License E(3) 1320
mobile +60193330573  Read More
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