Hello all,

First time property buyer here. Seller said the selling price is RM120K. Bank's loan offer is 110K (they based it in property market value) which I find OK and signed the offer letter.

Lawyer said, the S&PA will show 110K as amount of the property instead of 120K. Is this correct?

Thanks for any answer on the above.

no correct, SPA must be 120k

Loan agreement = 110k

Appreciate the quick reply, skng03. I need to talk again to the lawyer then. I have to sign the S&PA next week already but will not sign until the paper has been revised with proper amount.

Thanks again

ya, should be the selling price and not the loan amount/ actual value of the property...therefore 120k

normally bank loan if 90% will be somewhere around 108k if based on market value of RM120k, if bank valuation is 110k then 90% of bank loan will be only 99k only. Hence should be RM120k not 110k.

leongal, thanks for confirming that it's the Selling Price but not the property value!

Tohsan, the bank offered 85% of 110K which is 93.5K only but when I mentioned the property include a car park worth 7K with fully furnished and renovated aparment and I beg for higher loan that they can offer... the officer offered 110K which I agreed and I am very pleased. Very cool officer at OCBC bank.

maybe he is pulling your legs by offering you lower amount 1st rather than higher limit becos they are "kiasi" bank

Right and I agree that most banks are kiasi while some are malas.
I told OCBC bank officer that I'm waiting for other banks offer. He immediately did his job in a week and gave me the best loan they can offer

BTW, I regret going to Citibank for home loan. Made me wait almost an hour (twice!) and I have to chase the officer on phone calls about the status of my application. When they called me after 2 weeks, I told them I don't like to deal with lazy people anymore.

Hope the lawyer will revise the S&PA soon Not going to sign it if the property value is shown instead of selling price.

Thanks all!

loan agreement should be RM110k, S & P should be RM120k, btw why ur lawyer stated RM110k?? he should know exactly the price u and seller agree to sell and buy

btw.. i though Citibank work out things quite fast?? btw... maybe its branch not that much... so response is slower now... what is the rate OCBC bank offer u??

I don't know why the lawyer stated 110K but they said, the bank told them so. I told them to look at the S&PA of the seller that also have selling price from developer in the S&PA and not the seller's loan amount. The lawyer was assigned by the bank and I was not given a choice. They are OK to talk with though. Hopefully this document will be revised before the schedule to sign.

That's what I thought about Citibank as well which is why I consulted/applied to it first (before applying at Maybank and OCBC). Yeah, could be the branch or the officer only but they wasted my 2 weeks.

Sorry, I'm first time buyer so I'm still confused on rate the banks is offering. The offer letter says, Term Loan - (a) BLR - 1% pa on monthly rests.
Is that the rate you are referring?

This post has been edited by dmatthews: Apr 1 2010, 01:01 PM

as a buyer, you have the right to choose your S&P lawyer; only you got to stick to the bank's panel lawyer for loan agreement

don sign the loan agreement til they give you a satisfy answer, try apply for loan tru other bank as well see whats their offer.

This post has been edited by Tohsan: Apr 1 2010, 01:22 PM

Thanks for the info, leongal. Was wondering myself after I signed the offer letter (wheteher I need to get a lawyer) but the bank officer said "The lawyer will call you for S&PA and loan agreement and other verification thingy to be handled by them". So I waited, in 3 days the solicitor called and advised me of their fees and documents needed (just my IC only).

I guess, it's late for me now to bring this on to another lawyer (except and if, they won't agree to state the selling price in S&PA). I hope I don't have to do that as I want this done soon but properly. Thanks again

---

Added on April 1, 2010, 1:25 pmThat's possible? I did not know. I thought.. once we signed the offer letter.. the deal is done
Now I know it's possible to cut the deal if I have not sign the loan agreement. They need to revise the S&PA then. If they won't, no more deal even if I like the property soon.

Thanks again for the advise

This post has been edited by dmatthews: Apr 1 2010, 01:25 PM

u r wrong, as long as you didn't sign the loan agreement you are not tie up with them, no contract sign, you still can reject their loan. Don worry you wont bear any monetary consequences. This is your legal right!

This post has been edited by Tohsan: Apr 1 2010, 01:27 PM

I'm glad I found this great forum with great advise! I'm learning more each day
The lawyer just called and said they will discuss it with OCBC bank and will get back to me afterwards.

Remember to write to them request them to change the amount to RM120k just in case.

Yes correct this is the "rate" i referring to hehe... btw just to share with u.. current BLR is 5.8% but there is a cheaper BLR rate which is 5.75% offer by Affin Bank.. u can try to ask Affin bank as well if u haven sign the loan agreement with OCBC

yes u r right.. u can search S & P lawyer urself... dont have to choose those offer by the Banker... there are lot good lawyers out there... ^^

yes u are safe to cut the deal if loan agreement haven signed

yes agree with Tohsan

Thanks again everyone!

The lawyer and the bank agreed to display the selling price in the S&PA. They explained that the reason to put the loan amount is to lower the stamp duty fees and to show the real value of the property. They understood though my concern so all is well now. The lawyer will amend the S&PA before the seller and I will sign

Many thanks again!

Joey85, glad to know that there is another bank that have lower BLR. I guess, I'll pass now because of the time spent in this purchase has put my energy somewhere already LOL
Now planning to do renovation and might apply for Personal Loan to other banks or Home Xtra by OCBC. Will see if Affin will be able to provide such loan with great rate too.

dun be too excited yet; there's still a long way to go; what you need to do - is to monitor your lawyer closely and get them update you on the progress (most of the time, they won't call you, so it is better if you take the initiative to follow up with them)

congrats too...

Noob Question
10k d/p need to pay to vendor or lawyer?

looking for housing loan too. i need to pay 10% from 150k n
i got 15k rite now. but dunno to whom i need to pay d/p to

welcome...^^ glad that can share something here...

yeap agreed... but my S & P lawyer is better than my loan lawyer.. they will keep me update instead my loan lawyer need me to call them for updates...

Down payment will pay to vendor through lawyer... btw can i know have u pay any deposit to vendor and to secure the house already?? coz im quite confuse about ur Q... normally the step is ... 1. Go to see the house, 2. I like the house, 3. Nego the price, 4. both party - vendor and purchaser agree the price, 5. Purchaser pay some deposit / down payment (some vendor request to get down payment directly) to secure the purchase, 6. Find lawyer and banker, 7. Lawyer will follow up for down payment / other things

this is my experience... maybe there are different situation ??

booking fee of 2-3% is usually payable to the property agent (never pay to the owner directly, because you might not noe the owner is under bankruptcy)

the remaining 10% deposit (after minusing the booking fee) is payable to your s&p lawyer

Thanks again to all of you who replied in this topic. I'm indeed excited
Hopefully I don't have to chase the lawyers after signing of the S&PA but they are updating me so far on needed documents.

Many things on my head right now .
Renovations and I'm also thinking of taking advantage of Account 2 in EPF to recover some money I'm paying for this purchase (10% payment to seller, 4.1K to lawyer). I need to wait for S&PA and loan agreement to be signed, I believe.
Also the MLTA or MRTA. Not sure which to get yet.

joey85, your procedure is the exact procedure I am doing or was asked to do. Booking fee is made to the lawyer then the rest of the deposit is to be paid during signing the S&PA. That's what the lawyer told me to do. Paid and will pay by cheque too so it's black and white, they said.

This post has been edited by dmatthews: Apr 2 2010, 10:38 AM

Now u need to monitor the process makesure they don pay your developer or seller late otherwise you will be charge interest of 10% per annum. Remember to protect yourself by writing them a letter stating you will not bear to pay the interest in the events of late disbursement due to their mistake - bank & lawyer.

no use la...i could not argue for my "rights" at the end of my property transaction and i got to pay the late penalties despite their faults (both seller's and buyer's lawyers)

u didn't try hard enough! why u didn't enforce your right according to your S & P ?

This post has been edited by Tohsan: Apr 2 2010, 01:53 PM

give up on them! treat it as a lesson of my life! thanks anyway

but i wun make them go easily; contemplating of reporting them to the bank and BNM....

u r most welcome.... yes issueing cheque is better coz u can track ur own statement and as u mentioned black and white, for me i even photocopy and let them acknowledge receipt hehe...

yes agree... btw.. sometimes when comes to worst... still need to pay the penalty so that the process wont delay more due to not paying penalty being experience before that even not my fault is both party lawyer (S&P lawyer) fault - his license couldnt renew, bla bla bla.. make our case delay... bank force us to pay penalty bla bla bla...

same with leongal

me too~~

maybe ur word not "LOUD" enough tats why they get away

maybe... aikssss.... no choice liao $$ already paid... so this 2nd round (2nd purchase) will learn to be smarter...

Noted that, Tohsan. Thank you again for the very useful advise
I will make a letter today and will give it to lawyer and bank on Monday. Monday is the day of signing of S&PA.

Sorry to hear this, leongal. Now, I will make sure the letter that Tohsan has suggested will be done today and received by them on Monday (in case, something is screwed by them or error/mistake at their end). Will give the seller a copy of the letter as well (just copy).

It makes sense. I am used to paying anything online or online transfer and seldom use my cheque book but now, there is a usage (legal matters)
Good idea to photocopy and make them sign a receipt of it

yes... this is what i learn from my working hehehe

Just an update
S&PA has been signed. Waiting now for the lawyer to do the stamping on documents so I can get a copy then proceed to EPF office for Account 2 withdrawal.
The seller got the cheque already and was photocopied by the lawyer to acknowledged receipt of the checque. My bank account shows the seller have encash the cheque already LOL.
Hopefully the lawyer will do their job without delay so the bank will release the rest of the money to the seller. I paid the lawyer already via cheque too but they have not encash it. Got the apartment key also (yay!).

Thanks again for helping me on all these stuff especially the amount in the S&PA

wow so fast...congrats ya

Thanks again to you and everyone!
It's indeed fast. The solicitor said I will need to wait for 2 days for the S&PA to be stamped. I hope to proceed next week with EPF withdrawal so I can get some cash without any interest. Was thinking of applying for renovation loan but realized money in EPF should be enough for little renovation only.