3 Answers

askguru expert
Hi there!

It's a simple process and best to keep these steps in mind:
1) Downpayment -is usually fixed at a minimum of 10%, and depending on how much the bank is willing to loan the property purchaser, the downpayment may vary.
2) Sale & Purchase Agreement - After paying off the remaining downpayment, the property purchaser will then proceed to complete signing the S&P documents.
3) Loan Agreement - This agreement is between the bank and the property purchaser, which the Loan Agreement will state all the terms of the mortgage loan.
4) Memorandum of Transfer - Signing this document will transfer the property’s deed from the seller to the buyer.

This comprehensive guide will explain each step on how to buy a property: https://www.propertyguru.com.my/property-guides/the-complete-guide-to-purchasing-a-new-developmentproperty-6959

If you are looking at buying a subsale, here is a comprehensive guide for you: https://www.propertyguru.com.my/property-guides/the-complete-guide-to-purchasing-a-property-in-the-subsale-market-6962

Hope this clarifies! Read More
David Wong Lai Kwong
For primary developers project:-
1. Sign a booking form and pay a booking fee to the developer or an appointed and licensed real estate agency.
2. Apply for a loan from developer's panel of banks.
3. Once loan approved, sign the Sale & Purchase Agreement (SPA)
4. Pay the lawyer's fee for SPA and the stamp duty. Some developers may absorbed the lawyer's fee as it may already be priced in. Stamp Duty is compulsory for all purchasers to pay.
5. Sign the Loan Agreement and pay the lawyer's fee for the Loan Agreement and disbursement. Again some developers may have factored the lawyer's fee in the sale price hence purchaser do not need to pay the lawyer's fee.
6. If you have EPF savings, you may withdraw part of the savings for the downpayment. Refer to https://www.kwsp.gov.my
7. If your bank loan is insufficient to pay for the purchase price in full, you will need to top up and pay the differential sum. Payments are in accordance with the schedule of payments in the SPA.
8. The construction, schedule of payment and handover of vacant possession period for landed houses are usually 24 months from signing of the SPA. For strata and highrise and mix developments it will usually be 36 months up to 60 months respectively.
9. You will receive the keys once you and your bank had made the full payments upon completion of the development.
10. The developers usually gives purchasers a warranty period of 24 months to 36 months for defects liability after handover.
11. During the construction period and after the first drawdown of the bank loan, the purchaser will be servicing the interest only. After the full drawdown, the purchaser will be paying the full monthly instalments (principal sum and interest). You may opt to purchase a Mortgage Reducing Term assurance (MRTA) from the bank.
For secondary market subsale properties:-
1. Make an earnest deposit to the licensed and registered real estate agency (company) and sign a Letter of Offer To Purchase (LO) to be accept Read More
David Wong Lai Kwong
For primary developers project:- 1. Sign a booking form and pay a booking fee to the developer or an appointed and licensed real estate agency. 2. Apply for a loan from developer's panel of banks. 3. Once loan approved, sign the Sale & Purchase Agreement (SPA) 4. Pay the lawyer's fee for SPA and the stamp duty. Some developers may absorbed the lawyer's fee as it may already be priced in. Stamp Duty is compulsory for all purchasers to pay. 5. Sign the Loan Agreement and pay the lawyer's fee for the Loan Agreement and disbursement. Again some developers may have factored the lawyer's fee in the sale price hence purchaser do not need to pay the lawyer's fee. 6. If you have EPF savings, you may withdraw part of the savings for the downpayment. Refer to https://www.kwsp.gov.my 7. If your bank loan is insufficient to pay for the purchase price in full, you will need to top up and pay the differential sum. Payments are in accordance with the schedule of payments in the SPA. 8. The construction, schedule of payment and handover of vacant possession period for landed houses are usually 24 months from signing of the SPA. For strata and highrise and mix developments it will usually be 36 months up to 60 months respectively. 9. You will receive the keys once you and your bank had made the full payments upon completion of the development. 10. The developers usually gives purchasers a warranty period of 24 months to 36 months for defects liability after handover. 11. During the construction period and after the first drawdown of the bank loan, the purchaser will be servicing the interest only. After the full drawdown, the purchaser will be paying the full monthly instalments (principal sum and interest). You may opt to purchase a Mortgage Reducing Term assurance (MRTA) from the bank. For secondary market subsale properties:- 1. Make an earnest deposit of 2% or 3% to the licensed and registered real estate agency (company) and sign a Letter of Offer To Purchase (LO) to be acc Read More