Either party doing a cancellation of the transaction within the period (21 days) that both party is agreed, will have to refund the deposit plus 100% compensation of the deposit to the other party (http://www.iproperty.com.my/iexpert/Question.aspx?ID=1913).
Buying A completed property from the sub-sale or secondary market
- Select the type of property and location that you desire and suit your budget. ()
- Do your market research by checking out property websites or newspaper advertisements
- Select one or two property negotiator that specialized in that particular area and engage their service. Find out as much information as possible such as tenure, land and built-up area, maintenance charges (if any), amenities, latest transacted value, potential and etc.
- Once you have decided on the property to buy, check with your banker on the valuation and make an offer. Always bear in mind that the offer is subject to the Vendor’s acceptance.
Once Vendor willing to sell and buyer willing to buy
- Read and understand before signing the letter of offer and pay 2% of the purchase price as earnest deposit or down payment. (Some agent may request for more than 2%.)The earnest deposit should pay to the Real Estate Agency concerned (Pay to the Company and not the individual) as stakeholder.
- Once the Vendor accepted your offer, you should appoint a lawyer immediately to draft the Sale & Purchase Agreement.
- Your lawyer should do a title search before the execution of the Sale & Purchase Agreement and caveat the property thereafter.
- You should apply for a bank loan immediately if required.
- Execute the Sale & Purchase Agreement and pay the Balance of 8%.
Once Sale & Purchase Agreement Is Signed
- You have another 3-4 months to settle the balance of 90%.
- You may need to pay the stamp duty upon confirmation of the property value and stamp duty payable by the land office
- Your lawyer will be notified of the redemption sum by the Vendor’s bank and your bank will give an undertaking letter to the Vendor’s bank to the effect.
- Then the Vendor’s bank will provide all the relevant documents to your lawyer to proceed with the transfer of title for the property
- Your bank will release to the Vendor’s bank the approved loan amount and you may have to settle any shortfall before that and thereafter the whole transaction is completed.
Stamp Duty
| ||
| There are two stamp duties to be paid by the purchaser, one for Sale & Purchase Agreement and another for loan documentation. | ||
| Stamp Duty for Sale & Purchase Agreement | ||
| First RM 100,000 | : | 1% |
| Next RM 400,000 | : | 2% |
| Next RM 1,500,000 | : | 3% |
| Above RM 2,000,000 | : | 4% |
| Stamp Duty for Loan Documentation | ||
| Flat Rate on loan amount | : | 0.5% |
| Legal Fees | ||
| First RM 150,000 | : | 1% |
| Next RM 850,000 (up to RM1.0 Million) | : | 0.7% |
| Next RM 2.00 Million (up to RM 3.00 Million) | : | 0.6% |
| Next RM 2.00 Million (up to RM 5.00 Million) | : | 0.5% |
| Next RM 2.5 Million(up to RM7.50 Million) | : | 0.4% |
Above RM 7.5 Million
| : | Negotiable |
