Xforged:




You can read a previous post of mine regarding RPGT and it's calculation here:http://forum.lowyat.net/topic/1612349/+20

If you don't understand, ask again. No worries.

Since ure applying for exemption, the purchaser's solicitors will not retain the 2%, and you will receive the balance deposit as usual. So don't worry.

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Added on November 19, 2010, 10:45 am
Raist:




Note the double claim on these:
Official Assignee Search & Winding Up Search = RM 60
Land Searches = RM 60
Developer's Confirmation = RM 50

If you are using the same solicitor, it is not reasonable for him to charge you RM200 X 2 for travelling.

Other than that, it looks alright.

This post has been edited by dariofoo: Nov 19 2010, 10:49 AM

the old property is less than 250k, do you mean that i have used it automatically? (50% exemption) and for second property there is no more discount for me? how do i double check that? who should i call? thanks

Yes, you would've been entitled to it automatically, and since you're no longer a first time purchaser, the new ruling would not apply to you.

You can check this with your previous solicitor.

Hi, will discuss with the lawyer on the Travelling expenses. On the double claim thing, how would u advice on that?

Discuss with your lawyer also la bro. Ask him whether he's gonna do the searches TWICE. There's no need for it to be done twice actually. See what he says.

hi i am one of owner of the a residence property in JB..

our property was high cout auction on 1 july,

Successful bidder is normally given 120 days to settle the balance of purchase price.. that will be on the 29 oct

but they fail but settle it on the 19 nov.. but the bank lawyer just execpt it withou any reason...

we the originally owner was not happy the way it goes............ we want to take action but to who

BANK or BIDDER

the bank cos for allowing the bidder to settle exceed the 120 day..


or the bidder ..... failing to settle within 120 day...

or both...

Francis_gf,

Interesting question. At first glance I might say that you've actually no ground to complaint against the failure of the buyer, but i'm trying to look at it from another angle.

If you insist that the S&P has lapsed after the 120 days period (3+1), then it would follow that it is of no legal effect whatsoever.

In that case, the bank would have to put the property up for auction again - and you would have to bear the costs of the earlier auction, as well as the first one.

What remedy are you seeking against the bank? Negligence? Breach of contract?

You must bear in mind also that the Bank still has the right to claim from you any shortfall from the proceeds from the auction - less legal fees, auction fees, interest, etc.

Let me do a bit of research on this and i'll get back to you in due course.

High Court Auction Case don't have further extention and once it exceed 120 days. It consider fail and the bank would put up the property up for auction again.

The lawyer have enough time to complete the whole process in 120 days and it is the bidder fault for failing to cooperate with the lawyer for payment (normally).

10% balance deposit, Cukai Tanah, Cukai Taksiran, both legal Fees, Valuation fees,open a bank deposit(if needed) already quite heavy for the bidder.

Failing to submit document to banker or cooperate with banker part of the reason.

Another reason it could be the bidder didn't know about the urgency of Auction case which the date stated at the proclamation of sales and gave his/her case late to the lawyer to do the process.

there is no need but if the lawyer does it before the letter of offer/instruction from the bank, the bank might need the solicitor to do again

That instance may be likely, but very rare, in my humble opinion. Most banks would accept bankruptcy/land searches conducted up to 3 months back.

Hi,

would like to ask if strata title (submitted to land office to transfer the name from developer to the owner) is not out within say 6 months or 12 months. And the property is sold. Either vendor or purchaser would like to cancel the deal (due to the title issue) after say 12 month, will it consider vendor's default or purchaser's default?

Thanks

Ermm...

Bankruptcy and Land Search 3 months a bit too long.

It is better to know why you need a land search or bankruptcy search for rather than saving it.

You have not provided us with much facts. However, I'm guessing that when the S&P was executed. the developer was in the process of getting the strata title issued in the name of the initial purchaser (now the vendor) - am I right?

Honestly, I don't think the issue of subdivision of the master title [from developer to owner] is a default which can nullify the agreement.

If the strata title is issued in the name of the initial owner (now the vendor), the vendor would surely have executed an undertaking to subsequently transfer ownership of the property to the subsequent purchaser. There is no issue there, really. The transaction can still be completed. The solicitor would have obtained the developer's letter of confirmation, where all details pertaining to application of the strata title would be stated therein.

So, to answer your question, there is no occurence of a default which would nullify the agreement.

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Added on November 22, 2010, 11:06 amGood point about PURPOSE of a land search and bankruptcy search.

Land search:

- initial search to determine if the vendor is indeed the REGISTERED PROPRIETOR of the propert;
- to determine if the property is free from encumbrances
- to determine if there are any other claims against the property - via caveats,etc
- to determine if there are any restrictions on the property with regard to transfer
- to determine if there are any restrictions as to the use of the property

In some cases, one land search would suffice. It is conducted by the purchaser BEFORE the agreement is executed. This search is MANDATORY. A purchaser who relies on the mere representation of the vendor (even if the vendor states it in the agreement) is looking for trouble.

Sometimes, the bank would require a search to be conducted AFTER the documents have been presented for registration, i.e. to ascertain that the title has been presented for registration in the borrower/purchaser's name AND that the charge in favour of the bank has also been presented.

In SOME instances, the official receipt issued by the land office is sufficient to assure the bank that it is safe to release the balance purchase price to the vendor, thus completing the transaction.

Thus, it depends on how strict the bank is. Therefore, in such scenario, TWO searches must be done - irrespective if you take one solicitor to handle the agreement and loan doc or otherwise.

Bankruptcy search:

- simple - to determine if the vendor/purchaser is an undischarged bankrupt at the time of execution of the agreement.
3 months is not a long time indeed. I ran a check with a senior practitioner who says that he's given searches conducted 6 months back, without any issues.

With the advent of CCRIS and CTOS, searches can be done further beyond the borrower's bankruptcy status - right up to the repayment records of the borrower with regard to other liabilities (car, previous loan, credit card) can be traced up to date at a click of a mouse.

Hope that puts things into perspective.






This post has been edited by dariofoo: Nov 22 2010, 11:06 AM

[quote=dariofoo,Nov 22 2010, 11:47 AM]
You have not provided us with much facts. However, I'm guessing that when the S&P was executed. the developer was in the process of getting the strata title issued in the name of the initial purchaser (now the vendor) - am I right?

Honestly, I don't think the issue of subdivision of the master title [from developer to owner] is a default which can nullify the agreement.

If the strata title is issued in the name of the initial owner (now the vendor), the vendor would surely have executed an undertaking to subsequently transfer ownership of the property to the subsequent purchaser. There is no issue there, really. The transaction can still be completed. The solicitor would have obtained the developer's letter of confirmation, where all details pertaining to application of the strata title would be stated therein.

So, to answer your question, there is no occurence of a default which would nullify the agreement.
___________________________________________________________
Thanks dariofoo...

To give more info The property is a freehold property. The developer is indeed in the process of getting the strata title issued in the name of initial purchaser (now vendor). The application has already submitted to land office for registration. However, in certain case, the registration can be long (ie 6 to 12 months).

Initial purchaser- vendor
subsequent purchaser - new purchaser

Subsequently after the submission of registration of strata title to the land office by the initial purchaser (now vendor), the property was sold. The new purchaser (purchaser in the subsale market) borrow loan from bank A to purchase the property. Will bank A release the full payment to the vendor by only taking the undertaking to subsequently transfer ownership of the property to the new purchaser? I was told by new purchaser's lawyer that bank A will not release full payment with vendor letter of undertaking.

The vendor will have to wait till the strata title issued in vendor's name then only the usual 3+1 period will take effect. Which means the full payment will only comes 3 months after the vendor gets the strata title under his/her name (earliest). If the strata title takes 12 months to register then the sales can only complete by 12 + 3 = 15 months.

Is there anyway the sale can be completed and bank release full payment without have to wait for the complete registration of strata title?

Thanks

This post has been edited by yummy12: Nov 22 2010, 08:36 PM

hi,
i want to ask about the 50% dicount on the SPA for loan below rm350k.
palnning to look for a house price range at rm300-330 around this few week.
if i got the LO approve and accept in mid of december, can i delay the signing of SPA document until 1 jan 2011 to entitle for the discount?

another Q is, what is the duration until the loan is fully disburst? izit true it can take up to 2 month to wait for the disbursement process?

Jeff:



1) You would have to check with the vendor whether he is agreeable to allow the document to be dated 1st January 2011. You can sign the document at any time, but it can be dated later when it is stamped with the nominal RM10 fee. As long as you pay the deposit and sign the agreement, the date of the agreement shouldn't be any issue, unless the vendor is in a rush for the money. Talk to him and see how it goes.

2) The duration is very subjective and depends on a lot of factors - if the current property is unencumbered and the vendor has clean title, there will only be one advise for disbursement/release of the loan sum to the vendor. This will be the most easiest and straightforward manner. On the other end of the spectrum would be where the property is still encumbered - and there would be two disbursements/release:

a) Redemption sum - to redeem the vendor's loan from his financier; and
b) Balance loan sum - to be released to the vendor upon successful registration of the MOT (or perfection of Deed of Assignment) and charge/ DOA in favour of the purchaser's financier.

If documents go missing, eg the vendor's financier misplaces the original issue document of title for the property - the matter can be prolonger further.

thanks dariofoo,
1more think, how much do i acctually save from the 50% discount?
i conduct survey for SPA fee and quote around rm13k for all the documentation.
is there any bank stil cover for the SPA or need to pay myself?

sorry for asking too much, no knowledge as this will be my first time purchasing a property.

Jeff,

Go through the earlier posts and you'll find a link where you can calculate s&p fees, loan doc fees and also stamp duty as well in one website.

With regard to banks paying for S&Ps, you would have to ask your agent. Different banks have different policies. As far I as know, they can include your legal fees for the loan doc in the loan, but for S&P, I'm not sure.

Good luck


This post has been edited by dariofoo: Nov 23 2010, 01:36 PM

I am a foreigner working in Malaysia for 5 years and my wife is a malaysian. Now I am buying a completed house from a developer and received a offer letter from a bank for it. I know that i need to get the state consent letter first before the bank can release the money to the seller in any sub-sale cases; however, in my case the individual titles have not been issued yet.

Is it ok for the bank to release the money to the developer even if i haven't got the state consent? The developer's lawyer said it's ok....

In SPA, the developer gives me 90 days from the signing of SPA for the bank to release the money to them and I am worry that the bank may make big issues out of this and i would be paying interests to the developer, God knows how long!

This post has been edited by naing: Nov 24 2010, 08:21 AM

Yes, as issuance of strata title in the name of the initial purchaser (now vendor) is not a condition precedent in your S&P/ Facilities Agreement (unless a perusal of it reveals otherwise). As long as the bank has some security documents in place, ie a Deed of Assignment, there ought to be no reason why they should withhold release of the loan.

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Added on November 24, 2010, 9:34 amNaing, have you sought any clarification from your lawyer? I'm sure you're represented as well. Is your wife a co-purchaser in the agreement?


This post has been edited by dariofoo: Nov 24 2010, 09:34 AM