2) Visit properties. Walk around the area, chat to the neighbours, and explore the unit itself. Subsale properties don't come with a defect liability period (DLP), so make sure you do a thorough inspection inside and outside.
3) Price comparison. The secondary market offers the bonus of helping you decide through real data (i.e. a history of previously transacted prices), rather than assumptions and projections.
4) Finding financing. A bank will loan up to 90% of the total value of the home as THEY assess it, so have a budget with a little more leeway. Check your CCRIS and CTOS reports too.
5) Lawyer up: Unless you have extensive experience in tackling bureaucracy at the Land Office, or negotiating tweaks to legal documents, you’re going to be lost without professional help.
6) Be earnest: Pay earnest deposit to the seller's appointed agent and sign an Offer to Purchase and/or Agreement to Sell, stating the mutually agreed price, payment terms + other T&Cs.
7) Sign SPA: Ensure both parties are happy with, have thoroughly checked, and agree to the details on the SPA before signing.
8) MOT and Loan Agreement: The Loan Agreement should be signed with the bank to confirm the financing of your home loan. MOT is for the transfer of property from seller to buyer.
9) Downpayment: Pay the remainder of the downpayment!
10) Agreed Apportionments: Check this list, which details all the bills that have been paid up to the point of transfer. You'll need to reimburse the property seller for any portion which he/she has already pre-paid.
You can read the in-depth checklist here: https://www.propertyguru.com.my/property-guides/how-to-buy-subsale-property-malaysia-16649 Read More
Once you have identified a house and negotiated an agreed price from us as an agent we will be able to advise the following steps:-
1. Issue a Letter of Offer (LO) to be signed by purchaser and then the owner. An earnest deposit of up to 3% of the SPA price needs to be paid to the licensed agency as stakeholder.
2. With the LO and the copy of the title deed you may apply for your bank loan prior to the drafting of the Sale & Purchase Agreement within 14 working days from acceptance of offer. You may seek assistance from a mortgage broker who will be able to assist you to apply loans a with a few banks.
2. Within 14 working days, a Sale & Purchase Agreement (SPA) will have to be drafted by your lawyer (it is more convenient to use the same bank loan lawyer although it is not a must). Upon signing of SPA you are to pay a total of 10% of the SPA price (the 3% included).
3. The SPA will allow you 3 months + 1 month to settle the balance purchase price of 90% from the SPA date (if the property is freehold) and 3 months +1 month period from the date of consent from the Land Office (if the property is leasehold).
4. Once your bank loan is drawn down and the balance purchase price is paid to the Seller, you will take vacant possession of the property to be advised by your own lawyer. All outstanding quit rent, assessment bills and service charges/sinking fund will be apportioned to be paid by both Purchaser and Seller based on the cut off date.
5. The Purchaser and Seller to inform the relevant local authorities of the change of name and apply new utilities accounts (for purchaser) and terminate accounts (by Seller).
Hope the above helps you.
David Wong (E2097)
Foreward Realty Sdn Bhd - E(1)1909 Read More