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Investment Top Up SPA ?

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cherroy
post Jul 14 2009, 03:19 PM

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Just like trojant said, seller gain nothing in the process so why seller must agree to top up the SPA which is not the actual figure he/she is getting? Bare in mind, top up in SPA figure while actual selling price is different is actually not legal to do so.

This post has been edited by cherroy: Jul 14 2009, 03:20 PM
cherroy
post Jul 14 2009, 04:29 PM

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QUOTE(jasonhanjk @ Jul 14 2009, 04:23 PM)
Legal cost may not increase at all.

For my case:

Market rate RM120k
RM100k cost
Loan RM100k
SAP stated RM120k

In the event SAP stated RM100k, tax will still base on RM120k market rate.
Just in case the seller decide to pull something dirty, I got a cover letter stating selling price is only RM100k and not RM120k stated in the SAP.
That letter cost me RM250.
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The letter is the prove you might be doing thing dirty/illegally. icon_idea.gif biggrin.gif

Please don't divert it too far, otherwise mod has no choice to close it. Discussion and exploring and knowing what is the issue, still ok, further into some grey area especially can be illegal one definitely no no.

This post has been edited by cherroy: Jul 14 2009, 04:32 PM
cherroy
post Jul 14 2009, 04:36 PM

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QUOTE(invest2229 @ Jul 14 2009, 04:32 PM)
But this is protect buyer if playing dirty.  icon_idea.gif
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Whether the letter hold ground when there is dispute in court case still don't know/sure.

As the letter can be seemed non-legitimate as well.
cherroy
post Jul 16 2009, 02:55 PM

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QUOTE(invest2229 @ Jul 16 2009, 12:04 PM)
I did check with my banker about top-up SPA price, and they said nothing
wrong and she told me most people are doing this.

- Bank will most welcome if you take higher loan from them.
- Lawyer will most welcome because they can charge you much base on the price
- Government will earn more on the Stamp duty.

So, seem everyone also happy with this, then why does this illegal ?
Just try to understand more..
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Just people doing it, doesn't mean it is legal. People speeding in highway beyond 110km/h is like a norm, a lot of people doing and get away with it, right? But it is not right in the first place, get it? icon_rolleyes.gif

Whenever you signed the dotted line on legal documentation, it just means that whatever stated information in the contract is correct and exactly what is happening in real deal. So if the actual deal or situation is different in the contract, it is deemed cheating already.

 

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