Recently i stumbled upon an apartment, however, was told that the developer is no longer there. My agent said there is no problem, just takes longer time to process. Bank advised me not to buy due to many issues. Now, I am no property expert, I need some of the sifu's advices.

What are the risks? I am buying it for rental purpose, so, not flipping in the short term. Of course, if price is right, no harm selling.

1) it doesn't have CF. But, there are already ppl living, and transaction going on. What is the purpose of CF? I knew it stands for Cert. of Fitness, right?
2) how long does it take to transact?
3) is it harder to get loan from bank?

What are the things that I am not aware of?

PS: I think properties market is really hot, cause several of the props that I wanted to buy, were sold before I can even look at the actual units! Recession? what recession?

huh...no cf?! if there's no cf, there wouldn't be any utilities connected to the apartment right? correct me if i'm wrong. n dun tink its possible to transact the property in the secondary market also if there's no cf obtained.

cf means dat the property u purchased is deemed fit by the council for occupancy. usually, cfs will only be issued if the developer has complied with all the necessary guidelines when constructing the property. but of coz, there are definitely exceptions to it..

This post has been edited by babana: May 8 2009, 12:15 PM

Jangan. There's tons of properties out there. Why bother with one where developer sudah lari??

not neccessarily. i know many of my friends house who got no CF due to many reasons (especially the one that build their own house), but they still have electricity, water, lori angkut sampah, and everything. correct me if I'm wrong, I've never heard from them of any problem selling property without CF....

better don't take the risk. look for other properties..cheers!

'hearsays' can be a very big wrong.

no one is allowed to occupy a property that does not have a CF. if a person insists in staying he or she can be charged in court.

i believe your friend build an independent property on a piece of land (bungalow i assume), and in that case a CF is not needed, but a certificate of completion is required from the architect.

lainux,

from a personal point of view i'd refrain from buying the said property. it's an extremely big risk to take, CF is one of the most important documents to protect the owner and the occupants. even if you don't mind that the property doesn't come with a CF, you won't know if the next buyer who wants to buy from your hand wouldn't mind. and if any news of the properties there don't have CFs issued got leaked out, you'll be assured there will be plenty of legal wrangles you'll be caught in. and if you plan to rent it out, you may even consider facing another lawsuit; misleading the tenants into believing that the property is fit to be occupied.

This post has been edited by livingmonolith: May 8 2009, 01:00 PM

Think financing will be quite difficult to obtain if property doesnt have CF, correct me if im wrong? ;p

screw it, move on

i thought it will be impossible unless you're buying cash. anyway, i believe there are still banks which are desperate to approve the loans if one applies.

OK, found out from the agent that it has CF, but not individual title. Diff agent diff saying.

Lets say have CF, then is it still very high risk?

i think ur agent meant no strata title rather than no CF loh...

uh... what if there is a structural defect or what so ever, who's gonna be responsible?

From what I learned from the owner which I talked to a few days ago, you are responsible for it, if it is inside your house. Outside, the JMB will take care.

you can go ahead and purchase it, but at your own risk of course.

problem 1 - the documentation will be handled by a liquidator, not the developer. not sure how complete their records will be.

problem 2 - application of strata title is supposed to be done by the developer. purchasers may have to incur additional cost for this.

problem 3 - banks are generally reluctant to finance these properties. make sure you get financing in place before paying anytihng - or make sure your offer to purchase is subject to loan approval. generally cimb is the most lenient for these cases.

that is just off the top of my head. there could be more problems, so think carefully before purchasing.

Thank you for the input. Will think carefully.

bro..i strongly discourage purchasing because of the issues highlighted I by johnsonmm...i have seen many purchasers lose their properties because financers refuse to finance property where the developer has been declared a bankrupt.

If you insist on purchasing then obtain financing first before even considering purchasing the said premise.

gd luck