Asked by Anonymous
There is a lawyer from a top law firm in Johor saying the following: Upon signing the offer to purchase, the 2% earnest deposit that a buyer pays to the seller should be held by us as purchasers solicitors as we as Purchaser's solicitors are obligated to ensure the payment is made to Inland Revenue towards payment of RPGT (real property gain tax) which the Vendor will need to pay after consent has been obtained by the  purchasers and the 8% should be held by the vendor solicitors until consent has been obtained. From what i know, the 2% deposit must go to the seller as a booking fee to his property. How can a legal relation is formed without a consideration? Anyone can tell me the right practice and the 2% should only be deducted from the 8% down payment paid during the SPA stage? The 2% earnest deposit can not be held during the Offer to Purchase stage. It could only be done at the Spa Stage. Am I right?
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