Want to ask when should I pay the late penalty charges to the seller?

Would I have to pay before I collect the keys? Or, would I be billed after completion (i.e. receiving keys)?

thanks

when u received the claims of LPI (late payment interest) letter from the vendor's lawyer.

are you seller or buyer?

late penalty for bank loan or progress payment?

Wait for the seller's lawyer to send you the bill. If they didn't, just forget it. If they do, ask them to justify.

this means that i will get my keys first right?

thanks alot for all the answers

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Added on March 3, 2010, 7:23 pmi am buyer, it is for the late completion of the s&p....thanks

This post has been edited by leongal: Mar 3 2010, 07:23 PM

your case all settled? congracts anyway

not totally settled, but almost settle....i am keeping my fingers crossed.....and thanks for all the support and help throughout these four months

same question for me.
i am the buyer getting a govt loan to buy an old house . question is : 'does the completion time' (last date of interest-free period b4 I have to settle the 90% cost) refers to the date that my loan is 'approved' or that i actually physically deposit the money into the vendor's account?

can you quote the whole clause?

It easier to tell that way. thx

just for your info (those first time home buyer) - i just spoken to my lawyer that the late penalty has to be paid upon collection of keys

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Added on March 4, 2010, 4:22 pmcan i pay the late charges directly to seller's lawyer (since I am collecting from the keys from them) - I can give them cash if they wan to ensure that the cheque is cleared?

This post has been edited by leongal: Mar 4 2010, 04:22 PM

merce,
my agreement goes like this:

The balance of the Purchase Price amounting to RMXXX only (hereinafter referred to as "the Balance Purchase Price") shall be paid by the Purchaser to the Vendor’s Solicitors as stakeholders within three (3) months from the date of receipt of the said Consent by the Purchaser’s Solicitors (the last day of the three (3) months period shall hereinafter be referred to as "the Completion Date"), failing which the Vendor shall grant to the Purchaser an extension of two (2) months (the last day of the two (2) months period shall hereinafter be referred to as "the Extended Completion Date") to pay the Balance Purchase Price in which event the Purchaser shall pay to the Vendor an agreed interest on the unpaid balance at the rate of eight per centum (8%) per annum to be calculated on daily basis from the expiry of the Completion Date to the date of payment .

So i suppose it has to be actually delivering the cash to the vendor?

i'm not very sure about govt loan, but here what i can tell from my understanding of the terms;

1)Completion time = usually refers to the completion of a under-construction property or development. In this scenario, loan would have been fully disbursed from your financier.

but i'm a little confused with your question;

1)last date of interest-free period
-does govt loan offers interest-free-period if the loan is not fully disburse? the last i remember govt loan is only applicable to completed units.

2)... refers to the date that my loan is 'approved' or that i actually physically deposit the money into the vendor's account?
-sorry but i dont really get ur question here...



To make it easier... just take out the one in brackets.

I've also highlighted the points, so that u'll get a better picture

The balance of the Purchase Price amounting to RMXXX only shall be paid by the Purchaser to the Vendor’s Solicitors as stakeholders within three (3) months from the date of receipt of the said Consent by the Purchaser’s Solicitors, failing which the Vendor shall grant to the Purchaser an extension of two (2) months to pay the Balance Purchase Price in which event the Purchaser shall pay to the Vendor an agreed interest on the unpaid balance at the rate of eight per centum (8%) per annum to be calculated on daily basis from the expiry of the Completion Date to the date of payment.

In other words, the balance of the transaction price of the property has to be settled within 3 months time, from the date of the said consent (which refers to the SPA). If you failed to settled the outstanding balance within the 3 months time, your vendor can grant you an extension of additional 2 months time, which the remaining balance will be charged on the agreed interest rate, calculating on daily rest basis from the 1st day of the 2 months window.

assuming SPA signed on the 1st of Jan, transaction price is at RM 300k;
Day 1 = 10% deposit paid. (RM30k)
Day 90 = paid another 60% (180k). Current amount paid is 70% (RM 210k). outstanding 30% (RM 90k)

Interest will be charged at (assuming) 10% per annum on daily rest basis, so we'll calculate using daily rest formula;
X = outstanding amount (RM 90k)
I = interest rate (10% pa)
D = number of days (15 days)

[(X x I)/365] x D

LPI = [(RM 90k x 10%)/365] x 15 days
= [(9k)/365] x 15
=[24.65] x 15
=369.75

So on the day 105, when you settled the remaining 30% you are also require to pay an additional of RM 369.75 as LPI.

However, if you do not settle the sum within the 2 months time frame, the vendor has their right to cancel the purchasing.

hope these help...

This post has been edited by merce: Mar 7 2010, 03:38 PM

Do you mean the late interest? My lawyer until now hasnt settle it for me. I think more than 6 month already. I have complained to them.
Anyone know how to make complain to the bar council or help me make the process faster? The lawyer firm I am using is Anuar Hong & Ong. Anyone know who is the boss of Anuar Hong & Ong? So, I can make complain on them.

http://forum.lowyat.net/topic/1088298

This post has been edited by leongal: Mar 8 2010, 01:00 PM

can i pay the late charges to the seller's lawyer directly when i collect the keys?