At the very least, they ought to email you to update you of the status. Yes, you may complain to HSBC. If you think that the delay can be attributed to their lackadaisical attitude, you can file a complaint with the A&S Discip Board as well. Details can be found at the first page of this thread.

CKHT forms are to be filed with LHDN within 60 days from the date of the SPA , so this can't really be used to gauge the progress of the file. Sorry,mate.

What is stated in your SPA? That will state if the vendor has to sort it all out at the vendor's cost. Usually it is sold at the condition when you viewed it at first - it's what we call 'as-is-where-is' basis. So do look up in your SPA to see how parties has agreed to deal with such matters.

I would advise you against doing so, unless you are desperate to sell and you don't think that you can get another buyer at the price you're seeking.

Real life scenario which I have come across was where the buyer used the same excuse and everything got stuck as EPF requested a letter of offer from the bank as one of its requirements. Later on he could not obtain a loan, and the SPA dragged on for more than 3 months with no progress. In the end, it was aborted and the seller merely forfeited the 2%. As a result of the delay the seller unfortunately missed a house which he intended to purchase with the proceeds of the sale of this house.

I'm assuming that the size of the unit has been reduced pursuant to the change in the plan. Am I right?

One of the required clauses under the Act is that any reduction as to the size of the unit entitles you to a refund (based on the sixe of the reduction). Check your SPA to locate that clause.

However, it does not give you the right to repudiate (cancel) the SPA.

Did the developer give you a copy of the stamped SPA before they told of you of the intended change of the plan? In other words, do you have proof of the original plan?

If you have proof, then instruct your lawyer to write to the developer formally. Unless of course your lawyer is appointed by the developer (free legal fees?)

In that case, you have to appoint your own lawyer.

After some bugging they might just decide to agree to abort the SPA and refund all monies paid by you. That is a long shot. They can just refund you based on the reduction.

Basically there's:

1) Legal fees for SPA
2) Stamp duty upon MOT/DOA
3) Legal fees for loan documentation
4) Stamp duty on principal security documentation

Although 3 and 4 are included in the loan, you still need to pay for 1 and 2.

Standard procedure is to pay during the execution of the SPA.

However, it is between the client and the lawyer. If the lawyer agrees to grant you an extension of time to pay the fees, then all is good. There's no hard and fast rule although in most cases, when the purchaser is the client, the lawyer would demand for fees to be paid upfront. If vendor, there is still the opportunity to deduct it from the balance purchase price.

So do talk it up with the lawyer.



This post has been edited by dariofoo: Nov 7 2011, 11:03 AM

I see. Then that clause is no longer applicable.

If both parties have executed the SPA it is deemed to be final. Stamping is just a mere formality. If you want to assert your right to the original plan (as at the date of execution), you need to engage another lawyer to send a letter of demand to the developer.

You need to instruct this current lawyer that you are not proceeding with the transaction due to the change in the plan.

Small matter. Just go to the nearest LHDN office with a certified true copy of the stamped SPA and request for a new Nombor Rujukan Cukai. They will immediately issue you both with respective numbers. Free of charge.

Don't have to worry about being taxed for it. It's just for their reference.

Yes, you have to pay,mate.

It does not, but make sure that you do it early as your solicitor needs to submit it to LHDN within 60 days from date of execution of SPA.

Cost - a reasonable sum not exceeding the scaled fees according to the market price of the property at time of transfer. To calculate the scaled fees, use the calculator at the first page (just key in the market price of the prop) or you can download the SRO.

Time frame - I would say roughly 1 month or sooner (sending the MOT for adjudication is the process which is unpredictable) if the property is not encumbered (i.e. no existing bank loan).

1. Earnest deposit, I assume? Can pay direct to owner but better have some form of black and white. A simple letter of acknowledgement would suffice.

2. The principal SPA (when he was the purchaser), photocopy of IC, his loan documents (if the property is still encumbered), photocopy of Geran, photocopies of all utility bills, quit rent (if got indiv titile) and assessment receipts (cukai taksiran).

3. Purchaser definitely needs to appoint a lawyer. Seller can opt to appoint own lawyer or 'tumpang' your lawyer and authorise him to do the redemption of his loan (if the property is still encumbered), discharge of charge/deed of receipt & reassignment and filing of CKHT forms. Since you're going to have to appoint a lawyer you might as well request that he prepares the necessary documents to secure your interests for your query in 1 above.

LAWYER'S CORNER WILL BE TAKING A BREAK

Dear all,

Am off for a trip overseas early tomorrow morning and thus, I will unavailable until Mon, 14th November 2011.

Humble apologies.

Do seek advice from those in the open forum if it is urgent.

For those who can wait, do post it here and I'll get back to you on Monday when I get home.

Cheerios

The most important thing is regarding the condition of the house. You need to reflect the rental in the SPA and the purc must agree that the house is sold on an as-is-where-is basis at the time of the viewing and that the purc would be responsible to make good any defect to the house in the event the SPA is aborted for any reason whatsoever, AND another clause that you are no longer responsible for the condition of the house at the completion of the SPA. Clauses to that effect (it ought to be more detailed - your lawyer ought to know how to draft it) should protect your interest. So, your tenancy agreement is not that important - that would reflect more on the rental to be paid, etc. It is your SPA which has to be more encompassing to include all eventualities in the event the SPA is aborted (SPAs are only important and referred to when things go WRONG only,right? )

Legally speaking, you are under no obligation to paint the house unless the purc agrees to bear the costs of same. Same goes for cleaning, but having said that, I guess it would not be polite nor courteous to hand over keys to a dirty house. It would not reflect well on you.

If he does not pay rent, it is not his lawyer's duty to recover it from him. It is your duty. If the purc has money, I would suggest collecting rent in advance. Example: If you foresee that the SPA would be completed in 9 months, I would suggest that you demand for 6 months rent to be paid upfront. That would eliminate one headache for you. If he can afford to pay in advance for 6 months, it is highly unlikely that he will bail out on the remainder. Another alternative would be to state in your SPA that all oustanding rental and utilities/outgoings must be settled by the purc and proof of payment must be shown to the vendor's solicitors before the SPA is deemed to be completed.

That's actually good news. Just hope that your lawyer is not likewise.

How long to evict depends on many factors and whether you do it legally or illegally

Legally - to get a Court Order - may take a few weeks or few months or even more than a year - depending on how co-operative he is, whether he engages a lawyer, what kind of lawyer he engages (a reasonable one or one who is just there to buy time and drag the matter while he continues to occupy the place), how efficient the Court is and the free dates of the Court. A lot of factors. What if he fights the case all the way til the end and after losing, he appeals and asks for a stay of execution (thus giving him a longer time to occupy the premises)??? That would be the worst case scenario which could happen.

Illegally would be terminating water and electricity - then you see how long he can tahan. But your bear the risk of being sued by him as the termination was unlawful. Not all would sue, but it has been done before.

How much would depend from law firm to law firm. Some expensive, some cheap cheap. One thing for sure is that you must first consider the money paid for fees and outstanding rental (evem if it is double rental) as a bad debt. This is because in most cases, then they do leave the premises, you would not be able to trace them and to enforce the Court Order would cost even more for you in legal fees. So you spend good money chasing bad money.

So, do think it over properly before deciding if it is worth it to rent it to him. Has his loan been approved? That is an important factor as well. If his loan has been approved one stumbling block has been removed and the chances of the SPA to be completed would improve.

What do you mean by document at the Court? That doesn't make sense. Where is your lawyer in this whole picture to advise you? Why is your agent telling you that the previous owner (I would assume that you mean the vendor/seller) has been paid the balance purchase price?

Do provide more info. Thanks.

1) No, it is the same. No consent is needed for a foreigner to sell.

2) Nothing different from local owners.

Duty is upon purchaser's lawyer to pay the 2%, and not the vendor's lawyer. How come the 2% went that side? It ought to have been retained from the deposit, i.e. only 6% of the remaining 8% deposit is forwarded to vendor. Your lawyer has to retain 2% and pay it to LHDN within 60 days from date of SPA.

Any delay in paying the 2% will entail a penalty upon the purchaser by LHDN (although you are paying on behalf of the vendor, but the penalty is imposed on you as the duty is imposed on you as the purchaser to make the payment)

For proof of payment, LHDN will always issue an official receipt.

Yes, you can include new clauses in a supplementary agreement BUT your current SPA must first stipulate that parties can agree to include further additional clauses in the said supplementary agreement. I would recommend postponing the SPA for a few days (if the purc doesn't mind) and include all the terms in one go. Better and less hassle. If possible, try to do so, or else go for supp agreement.

Not only that, but do provide for the costs to dismantle or remove any fittings to be borne by him. Even renovation of structures - let's say he wants to break a wall to extend a room - what happens if (worst case scenario) - the SPA is aborted? I'm sure you would want him to basically reconstruct the wall and restore your house to its previous position. What if he paints the house with some colour which does not match your taste? If SPA aborted, would you have to bear the costs of re-painting the house with a colour of your choice? He ought to reimburse you for that. As such, do keep in mind the need for a clause to cover such scenarios.

Better still if you prohibit him from doing any major renovations at least until the first drawdown to redeem your existing loan is completed (am assuming that your prop is encumbered). That would be a safe timeframe. Once first drawdown is out, you can rest assured that the bank will thereafter release the balance purchase price (assuming that all other factors like stamping of the DOA/MOT has been done and perfected/registered).

1. According to what you had stated, there is a note which is attached to the SPA. Is that a schedule/annexure (lampiran) to the SPA? If there is already an agreement by the vendor to repair the defect, why the need for a new agreement? You need to look at what is stipulated in the SPA as all the important clauses much be included therein. Some terms ought to have been inserted by your lawyer to protect your interest from the very beginning.

2. Sorry I don't understand. What fine is this?

3. Yes, you may change the name but I am not 100% sure of the procedure, especially with water. Do check with TNB and your state water company.

4. You can't really withhold the cheque, unless there is still time to complete the transaction, i.e. the completion date has yet to fall. If the completion date has fallen, any delay from your side to pay the balance purchase price (BPP) will allow the vendor to charge late penalty interest of 8%/per annum upon the BPP on daily rest.

Whether or not the vendor has made good the repairs has nothing to do with the SPA as from what I understand, you did not put the duty to repair as one of the duties of the vendor in the SPA.

5. Do you mean bank valuation? Well, I'm not entirely sure about that but normally the focus would be on the renovations and fixtures in/outside the house and the last transacted price within the area only.

This post has been edited by dariofoo: Nov 16 2011, 05:01 PM

No, no one can force you to sell your house. I hope the agreement which you signed was not a blank letter of offer to purchase? If it was merely an option to sell, then you can revoke the option anytime. Do you have a copy of it? What does it say?

If it is a blank document, and if she has filled it up with the particulars of the earnest deposit, then you might be bound by a binding contract to sell the house.

In any normal scenario, the agent can't collect any earnest deposit without your agreement at first. It would be foolish of the purchaser to make payment of the earnest deposit without having sight of a letter of offer to purchase duly executed by you beforehand.