after signed s&p agreement last week, paid 10% (RM50k) booking fee my lawyer ask me to pay differential sum RM100K (S&P price RM500k - RM50k(10%) - loan sum RM350k) to him immediately ...........plus stamp duty ..................but when i refer to the banker, he told me only pay that differential sum when the frist drawdown (after 2 to 3 mths) bank pay to vendor's bank to settle his loan amount.......................

question arises: if i pay the differential sum Rm100k now to laywer's firm s stakeholder............will the lawyer's firm earn the interest at the expense of me
if the banker is right since I will give up the interest from FD for that amount

anyone can gude me in this regards?

This post has been edited by asiatrader98: Aug 14 2009, 12:28 PM

Your bank only release redemption sum ( which forms part of your loan drawdown) on advice from lawyer that differential is paid..

Some lawyers will ask for the amount plus stamp duty early so that these items do not hold back the process when the time comes. You can place it with your solicitor with instructions to place in FD with interest accrueing to you.

This post has been edited by ??!!: Aug 11 2009, 04:19 PM

Oh....thank for the advice..........is this very normal procedure? I wonder

yup i agree....solicitors are only legally required to hold it in FD if it is intended to be held for more than 4 months otherwise it will be held in their normal client's account.

however, in general, solicitors would not tell you about this......................most of the clients even did not aware of this...................i suspect they try to take advantage for this kind of money.................that why most of vendors always got their money late (after 3+1) even bank has released redemption sum to the vendor's bank or vendors (but under the name of solicitor's firm as stakeholder)

Redemption sum goes to redeem the property from vendor's chargee bank.It does not go to the vendor direct.

yeah, i know..........but how about the balance after reduce the redemption sum if the vendor only owe the chargee bank just a small amount ...still under the name of solicitor's firm ?

Buyer's bank only releases redemption sum first to get the title from vendor's chargee bank. Only on advice from lawyer that transfer from vendor to buyer , + charge to buyer bank effected will bank release balance of loan sum to vendor's solocitor. Allow some clearing day allowance , if the solicitor sill holds on to your $$$, demand they pay u interest.

oh..thank for the advice

the legal assistant call me this morning, to ask me to pay the RM100k difference + stamp duty (i did not receive the payment of letter from the autority yet) even the letter they sent to me to ask for the differential sum to the solocitor is 31/8/09

and the vendor's S&P agreement request me to fully settle the 90% is 4 + 1 mths (before 1/12/09)

my banker confirmed with me I only need to pay the differential sum around 10/09 and he will inform me that amount before bank releases redemption sum

so i will give up my FD interest 3 mths ++ for that RM100K ????

then I call the lawyer about this...............he told me this is the normal procedure..........so how to demand them to pay me the interest?


is it the case? anyone have this experience or you totally did not aware of this issue?

This post has been edited by asiatrader98: Aug 14 2009, 12:33 PM

Altho SPA states that due date bal of purchase price is 3+1 months, in cases where seller and buyer has loan involved, the payment requirement gets a bit complicated .

Just some critical consideration in chronological order:

- seller's banker issue redemption statement
- simultaneously, MOT send for valuation + payment of stamp duty on notice issued
- Differential sum must be paid and confirmed by lawyer + all loan documentation completed ( for bal of loan to be released by 3+1 mth, u have to pay diff sum first ..altho it is not due yet)
- banker for buyer will then release portion of loan to redeem title from seller's banker
- on payment of stamp duty, submit for title transfer and charge
- completion of transfer +,charge , then bank release bal of loan to seller.

Some of the above procedure can run concurrently, some will only commence upon completion of earlier procedure.
Time frame is critical , failure to comply by due date involves penalties.

thank you ??!!
ur explanation is very clear!.............

by the way, i have 1 question,in most cases, when the buyer's bank delay to pay to the seller's banker/seller after 3 + 1 mths.................is it mostly due to the delay of lawyer if all the procedure are ok since i assume bank have money in hand at any time?

Hi,

I am the buyer of a subsale property and I have not received keys to the house after the 3+1 period.
Problem is, the chargee bank is taking a long time to release the title although redemption sum has been paid
2 months earlier.

Right now, my bank is charging me interest for the redemption sum disbursed.
Pls advise what I can do to avoid paying the interest as this is clearly due to inefficiency by the chargee bank?

Thanks.

same as my case, that all the issues about the delay of seller's S&P lawyer ....in my case 4 + 1 period, until now i still can not get the key

i do not think u can avoid the interest charge by the bank since the redemption sum is fully disbursed, but u have the right to ask/discuss with ur s&P lawyer to take the legal action for this issue....................
look at ur s&p carefully...esp section 6.02 Default by vendor or the Fourth Schedule, if any

reading all these make me worry...i am currently waiting for the seller's bank redemption statement, which the seller's lawyer say will take at least 14 working days - I expect my lawyer to get it by next week. And, much to my worry is because the seller's bank is CIMB, and known that CIMB is slow.....hope everything works out fine....there's nothing my lawyer can do without the redemption statement

ask ur banker to help........my one also Cimb..............but i think ur s&p/loan lawyer play very important role in this issue

seller's lawyer delay2 weeks to sumbit the relavant document about redemption to the bank.....cause my lawyer fail to summbit the doucuments to the bank and unable to pay the 2nd drawdown to them.........now ask for extesion .........otherwise, have to pay 10% of the purchase price ........

the law/standard s&p seems like protect most on sellers side rather than buyers

The differential sum should be paid relatively "early" as the transfer procedures etc are kinda time consuming. But the date your bank tells you is more accurate then the lawyer. However, the stamp duty does not have to be paid so early. A RM500k property would mean stamp duty of around RM7k+. You have usually 1 month still before dateline to pay stamp duty after transfer is effected.


minolta

thanks alot...

abit kiasu...i just called my lawyer....the seller's lawyer called them and said that they are delivering the documents soon (by today); hopefully everything is in tact....

make sure all the documents done property ......this is always the cases ...missing this or that....forgot to stamp....then the bank reject the documents...in my case, all happen to me.....delay 2 more weeks for missing some documents, seller's lawyer forgot to stamp and then do not answer my lawyer's call since s/he is in the holiday ...2 more weeks gone, my lawyer, too busy..........delay one more week and then in holiday......wasting one more week.............to change the name of the previous bank, i.e, multi purpose bank to Alliance bank for the previous loan...........no one want to entertain u in the bank, take me another week.......endup......4 months already still can not get the key
and i may have to pay interest 8% to vendor

esp, now....all the friday is holiday........

This post has been edited by asiatrader98: Dec 17 2009, 06:02 PM

Thanks for sharing your experience, hope everything will move on fine for you...

Yes, I was also concerned about all these friday holidays that will delay the process; hopefully it doesn't

do u noe if: when all the documents are in tact, the next move for the buyer's lawyer - is to send it to the land office? any idea? I am still confused on what's going to happen next...

btw, i have paid the differential sum to my lawyer on the day i signed the loan agreement; cos i dun wan to go to the law firm so many times....

If it is the other side lawyer's fault, u will not be penalised. Read the S & P properly, everything is spelt out in the agreement. Every documents, there is a certain time frame given, if exceeded, it will not be taken into account of the 3 months period.

However, having said that....it is sad to say that bankers as well as lawyers are so inefficient nowadays.

yeah, i know that

as for the inefficient issue, i can tell u why

as for the lawyers, they did not aware what his/her assistance (or secretary) did , most of the time, simply they r too busy; they always type wrongly the address, or etc with the document; forgot to summit one/some of the important document to bank/land office; they r delay to do the work due to the other side's lawyer's assistance or secretary (seller/buyer) mistake; they can not contact the other side's lawyer (maybe in the holiday or busy or intend to do that for some purpose), etc

as for the banker, actually, nothing to do with them, but s/he in fact has the reponsibility to monitor the loan procedure until fully disburse
, however, if u has good relationship with the banker, s/he can help u to in the process of disbursement

in my case, vendor's lawyer forgot to stamp with the document before summit to bank for disbursement........it takes 2 weeks to get the stamping .,
to change the name of the bank (from multi purpose bank to alliance bank), it takes 2 more weeks, why.....besides, my lawyer's secretary i have tried to call to the bank to get the form for change the name, no one want to entertain me........because no one want to take the responsibilty for this issue in the bank, to get the cheque courier from the bank to my lawyer before bankin for my vendor's lawyer, the process it take 1 week, when the lawyer is in the holiday, it takes 1 more weeks to process...................

since the process, get involve with ur S&P lawyer, ur S&P lawyer's secretary, ur loan lawyer, ur loan lawyer's secretary, ur vendor's S&P lawyer, ur vendor's S&P lawyer's secretary, banker, staff of the bank for both parties, courier parties, etc....................how can u control the condition to be efficient...............i call everyday to ensure they can process it efficiency with the assitance of the banker....but endup..........still delay 2 more weeks, to fully disburse to vendor of course, almost all the holidays r in the firday..also is the issue for this mth

This post has been edited by asiatrader98: Dec 25 2009, 07:37 PM

I so agree with you. Sometimes I think it would be faster if I be their "runner" delivering the documents can take up to 2 days for a distance of less than 30km....