Im planning to sell my house and buy another house near my place.

A friend of my mom, an agent says my house worth around 300K, and have found another house worth 500K for me.
We are planning to "exchange" the house and pay the remaining price.

This is my first time selling or buying a house so i have absolutely no clue what to do..
Can someone explain what i should do for my house, and also the one im buying?

How much cash should i have for the down payment or something..
And about the down payment, that is to be paid to the owner rite? So if i can make a deal with the owner i dont want to pay down payment but pay in full after i get the loan from bank its ok rite?

So is there a confirmed buyer for the house u want to sell? And a confirmed seller for the house u wish to buy?

Is ur hse under encumbrance? Same for the hse u wish to purchase.

When you say "exchange" the house, do you mean you will pass your house+RM200k to the seller and he will pass you the RM500k house?

Sorry what is encumbrance ??

WHen i say "exchange" it means that im looking for a double storey house, and the agent found another double storey house and that owner wants to sell his house and buy single storey house.

So logically i would sell off my house and get 300K and then buy that house that worth 500K, but since that owner wants to buy my house then we can just "exchange" and i pay the rest of the money...
Will that make things simpler and less procedure fees or something?

"encumbrance" means is the property charged to the banks, i.e. is there a home loan on the property.

Advice you to talk to a lawyer. In my opinion it would be complicated to buy/sell this way so I wouldn't not encourage it. Better off to enter into separate S&P agreements.

That house you going to buy really cost RM500k,did you really view the house? Any damages you going to fix after buying? My my opinion is consult lawyer and if you going to take a loan consult the bank also. Sometimes alot of documents involve. Just like encumbrance and the house were lease hold 99year or free hold? If it was lease hold, how many years left ?

About the downpayment is between you and the seller if he/she agree to wait for the loan release then no problem. According to HDA you need to pay for 10% of the RM500k. (nego with the seller). Banks need to take around 2 - 3 months to process your loan. If the loan release late whould the seller going to wait and no interest charged, better you go consult lawyer and bank.

This post has been edited by outdoor_active: Mar 8 2010, 11:43 PM