I want to buy a condominium and it is a subsale.
I paid 2% deposit and then search for the home loan.
I have received the offer letter from a local bank and signed it.
I waited for my lawyer to proceed with the rest.

I have waited for a month since signing the loan agreement and I still not signed the SPA.
My lawyer said because the owner haven't provide the sufficient documentations (his SPA, title,....etc) to its lawyer.


I need the moved in before year end for my wedding. So I hope to settle it fast as it might take 4-6months for the whole process.
I asked my lawyer whether can we signed the SPA first. Then the documentation can wait for the owner.
However, the lawyer said unable to proceed because insufficient documents.
Is it true??? Must wait for the owner to provide all documents?





This post has been edited by NaiveLady: Jun 10 2010, 07:46 AM

Don't take the risk. I made such mistake before and I lost my deposit and I had to pay the legal fees.
Signing the offer letter will not cause any loss to you, but bank loan offers are only valid for a certain duration (so you need to check on that).

My suggestion:
Discuss with your lawyer, set a deadline for the vendor to produce all necessary documents, if vendor fails to do so, try your best to recover your deposit (though the vendor can be nasty and wallop your deposit - which happened to me!)
Scout for alternative properties. Do not get desperate cause you will get yourself into bigger trouble - signing SPA means pay 10% to vendor (and pay full legal fee), signing bank loan agreement means you have to pay another legal fee, even if the transaction gets terminated half way. And of course once the 10% sits in the vendor's pocket, I don't see how you can recover that except of going to court (which will cost more money).

If you need a place for wedding, consider renting fully furnished units while waiting for your real home to be ready. It is not worth the risk.

if you signed the snp you need to pay for legal fees.
if you signed loan agreement, i dont think you can sign it without snp ?

maybe you signed letter of offer and not agreement ? at most you just reapply loan only.

anyway it is not worth to sign snp first.

This post has been edited by dvinez: Jun 10 2010, 10:37 AM

Its true that the lawyer need all the relevant documents before they can proceed with the S&P. Anyway, you should follow up frequently with your lawyer to rush the owner to provide all the documents. After you pay for the deposit, there is this some sort of 21-days period to sign spa rite? Tht's why the spa should not delay.
For my part, i will not simply pay deposit for tht house in case i fail to get loan.

there should be a clause in your spa that says in case the owner are unable to give you all the documentation needed they need to refund you. what your lawyer is doing is also protecting you. if the documentation not complete you may run a risk when transferring the property in the future, which is something you will not want. push your lawyer to chase up on the outstanding documents.

My apologies.




Seems like what I can I do is just set a deadline & chase the owner to produce those documents.

This post has been edited by NaiveLady: Jun 10 2010, 06:38 PM

try to get the seller's lawyer's contact, and try to talk to the seller's lawyer.....(which i did for my case)

Not to worry as SPA do take sometime to be finalised. I just signed my SPA on tues and paid the balance of my earnest deposit. I paid for my 2.1% deposit since March. So it will be sometime until that vendor get back to me.

When you sign the spa, do you mean by you have to pay the remaining 8% deposit? What about the lawyer fees, do you pay altogether?

Yes, it is. You do want to ensure that the seller is the proper party to sell the condominium to you and that the property is in order, don't you? What if, for example, the seller isn't really the owner? Sure you can insist on signing the SPA first. If the documents later reveal some discrepancy, you'd be facing a whole lot more trouble than just not having a new place to move into after getting married. Don't be hasty and put pen to paper without having everything verified first. Backkom gave good advice - set a deadline. If it's not adhered to, move on.

Yes, when you sign SPA, you need to pay the balance of the 7.9% (or 8%). As for legal fee, this entirely depends on your lawyer's preference. Some just collect a nominal amount (RM1K) then part payment until the completion of the transaction.

THIS LINK WOULD EXPLAIN THE WHOLE PROCESS

http://www.hba.org.my/articles/lawyers/200...rstanding-1.htm

Hi, can I just check with you guys, is it true that the purchaser should sign the SPA first then only loan agreement?

Any advice on the timeline?

Backkom, if the vendors fail to provide all the necessary documents, does it mean the sales is called off where the purchaser still need to bear the legal fees and all the charges incurred?

first, get your letter of offer from the bank first to ensure you secure your loan (to reduce risk of losing the 10% deposit)
then, sign s&p
signing of loan agreement comes after this

signing of s&p should happen two weeks from the time you paid the booking fee

if you are using the same s&p lawyer and loan lawyer, you can sign both at the same time

you can state in the s&p tat if vendors fail to provide all the necessary documents, vendor bear the legal fees and all other charges (but it will depend if vendor would like the clause there)

is it true the agreement u signed is loan doc? coz i dun come across loan doc can b prepared without stamped copy of S n p ...

yes, you can pre-sign, which i did for my case, because it is almost standard and i was sure that i was going to use the same lawyer as my s&p (which was a stupid choice)

the standard practice for this is SPA before Loan Agreement. but there are cases where LA was signed before SPA.

things you need to check now;

1)Check with your lawyer what are the items the seller failed to provide to complete this transaction. SPA? title? supporting docs? And what other alternatives the lawyer can practice to resolve this.

For the time being;

2)What is the availability period for the loan you applied? (Availability Period is the time frame the bank will reserve the money for claims and billing) It can range from 6 months (usually for completed units) and up to 36 months (for under construction units or projects).

3)check with your Mortgage Officer whether can they extend the period if there's a delay in transfer the property. update him/her with the current status.

4) Preparation for the worst; give a dateline to the lawyer how long do you want to pursue this. If there is still no action from the seller, make claim for your deposit (and any compensation u see deem fit). A normal house purchasing transaction will take you no more than 4 months, provided that there are no hiccups or delay among all involved parties. Dont DRAG this.

Hope the above helps.

u can drop me a call if you need any help with the matter.

good luck.