Which local authority is this?

If Vendor is represented it will be released to the Vendor's solicitors as stakeholders. Simple.

Are you serious? More risky to bypass lawyer and issue straight to vendor, no?

This is weird. No one trusts lawyers anymore, I suppose

In such cases you loan solicitor has to issue it straight to the vendor. Vendor's lawyer can't object to it. Money is ultimately vendor's anyway.

Bank is always protected by vendor's undertaking anyway.

I'm sure you're represented so your lawyer should know what to do.

Unless he/she is sitting at the corner of the room going like this ->

kaifahalas:


Disbursements for the following:
Printing & Photocopy 100
Transport 200
Telephone & fax charges 80
Miscll. 50

Total up to RM430 which is high. Filing fee of charge annexure and PA of RM140 is quite high too. Which area is this? OA search ought to be only RM12.

What's with the vendor's solicitor? I have a feeling that legal fees have not been paid by vendor so they want the cheque to be in their favour. So that they can bank it in, potong for their fees and then issue balance to vendor. Maybe they are scared that vendor may cabut if cheque in vendor's favour.

For all you know, vendor has no idea what's going on.

Parties can always vary/amend any term of the SPA. Your lawyer ought to know about this. He ought to propose this to the vendor, as a simple amendment to allow the cheque to be issued to the vendor can solve the problem, right?

If vendor's lawyer continue to be difficult then bypass him and go talk to the vendor directly. Surely vendor prefers the cheque to be issued in his favour right?

Don't let this unscrupulous fellows forfeit your 10%. Transaction almost complete, so don't let it go to waste.

You can't 'launch' a case against the bank. They prepared an agreement and you signed it out of your own free will and with knowledge. They will not vary the terms for you. Bank loan documentation are standard documents.

You loan solicitor has the duty to explain to you the terms and conditions of the agreement. However, you signed it in the end. You can't turn around now and say that you didn't understand the contents of the agreement. It'll just make you out to be a fool, if you do that.

The only remedy now, and an easy one at that, is to vary the SPA.

For the moment, be still and see what card your lawyer wants to play first. Keep this info as your trump card. If your lawyer's short on ideas, only then you tell him ya.

Keep us updated.

Good luck.

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Added on January 14, 2011, 9:05 amNope. When it comes to applying for a loan, most people do not do so until and when they sign the SPA. If their financial status is alright and the price of the property is suitable, there ought to be no problem for the loan to be issued.

Your letter of offer to purchase is subjective and can be prepared and signed by both parties as they wish. However, a lot of people appoint real estate agents, who have their standard format letters.

I seriously do not think the vendor will want to grant you a long extension just to allow you to secure a loan before signing the SPA. I wouldn't if I were in the vendor's shoes. Might as well sell it to someone who can sign the SPA with confidence that a loan will ultimately be given in the end. Put yourself in the vendor's shoes. Perhaps he can sell it to someone with a higher price later on? Value of money depreciates anyway. Any delay is detrimental to the vendor more than to you. Signing the SPA faster will give him the peace of mind as well.



This post has been edited by dariofoo: Jan 14 2011, 09:05 AM

You only signed the letter of offer right? No issues just tell the bank officer that you want it to be amended to 30 years. Small matter. You better read it properly before you sign. Don't take things for granted ya

Interesting question. Sorry to let you know that the law is powerless against these unethical conduct. I think we can call these people 'touts'. Don't need to talk about cinema. These are happening at our bus terminals everywhere, especially during peak season. All tickets sold out, but somehow these touts have tickets by the dozen!

Let me tell you a secret. Come here.

Closer la.

Don't be shy... I won't bite you.. Come...

*The developer's sale staff are part of the 'scam'. They get a commission from the subsequent 'sale'. If they are genuine, they won't sell to all this touts. *

Am still waiting for Hansel to revert with the particulars.

Jigsaw, you might want to read up on the history of this discussion between Hansel and I from the start of this thread. Then you'll get a better picture of what we've been talking about.

Cheers.

Shall answer all queries on Monday ya

Today's my

PS: Shall get back to you too Hansel!

Thanks guys!

The balance deposit (7-8%) can even be given to the vendor upon signing of the SPA. Some vendors insist on it. No harm there as there would be a provision in the agreement whereby if consent cannot be obtained, the deposit will be refunded to the purchaser.

This post has been edited by dariofoo: Jan 17 2011, 11:05 AM

Bro,

The legal fees are correct and proper.

The reason why the total sum of 21k may come as a shock to you is because it is for both your SPA and Loan Doc as well as for stamp duty on both - which comes to about 11k, if i'm not mistaken.

Where is this property located? The disbursement for registration of title, which is 2k, is quite expensive. Unless the property is from the likes of Jelebu, where they calculate according to the value of the property, and not a fixed rate.

Bankruptcy search of RM90 is also very excessive. It ought to be RM12/pax only.

Other than that, it seems alright.

No harm in getting a second opinion though

Is there an outstanding loan with the bank? Has an individual title been issued for the property?

Would be easier if there is no outstanding loan (in other words, the property is unencumbered) and if there's an individual title out.

You do not need to prepare an S&P. Both parties would need to execute a Memorandum of Transfer (From 14A).

A transfer by way of gift from your mother to you would be entitled for 50% off from stamp duty.

Quite straightforward, actually

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Added on January 17, 2011, 12:01 pmI'm not sure about Johor. You better ask the lawyer how they calculate the registration fees. You have the right to know. Good luck

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Added on January 17, 2011, 12:47 pmbaharinsav62:



1. With regard to the letter of indemnity, it is an internal requirement by the bank which you MUST execute. It is basically to secure the position of the bank in the occurrence of an unforseeable event, eg the developer becomes insolvent in the future. In such circumstances, you would then be unable to turn around and refuse to pay your loan on the ground that the project could not be completed due to the insolvency of the developer. You cannot then put the blame on the developer. As far as it may seem unfair to you, it is to protect the interest of the bank who is forking out the money to you in the first place.

2. Can you verify the facts which you had set out with regard to the alleged non-compliance by the developer and the problems which you say they are allegedly facing? Or are they just rumours?

Firstly, the property is yet to be completed. The developer has time until Sept 2012 (24 months - I assume that this is a landed property?) to complete the construction of the property.

Secondly, consent to transfer is contingent upon subdivision of the master title into individual titles. Even to apply for subdivision, it is not compulsory for the developer to do so right now at this moment. Most developments are fully completed before individual title is issued. Some even take years for it to be issued, and yet, people are living in it with no problems whatsoever.

Therefore, State Consent to transfer only happens AFTER subdivision of the master title to individual title.

You must also be advised that even without individual titles, you can still transfer your right over the property - via a deed of assignment. It has the same effect as a title. So there's really nothing to worry there as well.

In short, you cannot cancel the agreement as yet. I would suggest just waiting patiently and keep your fingers crossed that all will be ok. You can't do much now on your part.

And do sign the letter of indemnity. I don't think you can get your loan released otherwise.

This post has been edited by dariofoo: Jan 17 2011, 02:38 PM

I think it would be better to sit down with a lawyer who can explain in detail all the available options to you. There's only so much advice I can give on this thread,bro.

Sorry I don't dare to intro any law firms to anyone. If anything goes wrong, even if it unexpected, you're definitely going to come back here and hantam me kau kau

Ask some family and frens for recommendations ya.

PS: Did you ask the Bank as to what your options are? Better you go speak to them since the property is currently assigned to them. Do that before seeing a lawyer. Best advice for you.

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Added on January 17, 2011, 3:30 pmPlease read my reply to a question above with regard to the same issue.

This post has been edited by dariofoo: Jan 17 2011, 03:30 PM

How much did they bill you in the first place?



This post has been edited by dariofoo: Jan 18 2011, 12:56 PM

All the above would come under renovation costs and can be deducted for the purposes of determining the nett gain for RPGT.

In addition, can I humbly suggest that you buy a receipt book (the one sold at bookshops for RM2-RM5), fill up the details yourself and ask them to sign at the bottom, with their particulars? It would be better that way instead of a mere blank paper.

Don't forget other receipts like for legal fees paid when purchasing (and subseuqently selling) the house. It would be wise to keep a proper record now itself

This is very very interesting.

Can you get some more details for me?

1. How did you know that the transfer cannot be done as "the original S&P is missing one signature from the vendor". Who informed you this? Is it the Bank?
2. I read your thread and apparently the lawyer has been disbarred. Did the Bar Council assign the file to another law firm? Where are all the documents?
3. Which Bank is this? Do they have any other documents in their file?

Normally, before releasing the loan, the bank would need to have a security over the property, like a charge [gadaian]. Now, a charge can only be created in favour of the bank granting the loan AFTER the property has been presented for registration in favour of the chargor (i.e the purchaser who is taking the loan from the bank - who becomes the chargee).

If the Memorandum of Transfer has not been presented for registration, the bank would not be able to register it's charge, and as such, without any security, the bank would never ever release the balance purchase price to the vendor.

Try to do a title search - see what comes up. A title search will reveal whether it has been presented for registration or otherwise.

Hopefully hopefully hopefully the MOT was presented for registration but it has not been perfected by the Land Office. In such case, the problem would be at the Land Offfice and not with the law firm (of course the law firm is to be blamed as well for not following up ).

If there is no record of presentation, it might lead to several problems:

1) Any claim for ownership of land is subject to a limitation period of 12 years, i.e 12 years from the date your cause of action arises. In this case, it would've lapsed as the property was purchased 22 years ago ;

2) If the vendor now refuses to execute a new MOT to effect the transfer, there is nothing you can do to force him to as limitation has already set in. The Court would not assist you. As such, you'll be stuck with nothing despite having paid the instalments for the past 22 years.

However, the above is highly unlikely, as there is no way the bank would release the money unless it's right was protected first.

Do a title search and follow up with the bank to see what's their position.

Come back here and update us. Pose more questions if necessary. Act fast!

Good luck

The RM500 the lawyer is talking about is late registration penalty, and not because "they have to re-submit the MOT registration fee fro the second time".

The MOT is valid for a period of 3 months from its date. If after that, a penalty applies, as stated above.

When it is executed by both parties, the date is left blank. We call it executed in escrow. Normally it is dated upon satisfaction that your financier has released the cheque to redeem the vendor's loan (assuming that it is still encumbered), and sent for adjudication thereafter.

It should not be dated any earlier than that, so as not to bring the 3 month period any earlier than it should.

When did your lawyer's date the MOT and submit if for adjudication?

If they had needlessly dated it earlier than they should, then it is their error and they ought to pay for it, not you.

If the delay is caused by the vendor, ask your lawyer if they can insist that the vendor pays for the late penalty fee.

Bring this up with your lawyer.

If can't get them back then can't help it, I guess. Have to rely on what you have. I can't say for sure as it is for LHDN to decide. You can calculate the expenses incurred but the final decision to accept the expenses as tax-deductible is dependant on LHDN - like personal income tax.

Just put it in and keep your fingers crossed ya.

It is RM300 per person, irregardless whether it is joint name or otherwise. If there are 4 vendors, then it's RM300 X 4 - RM1200.

Perhaps another RM100 was quoted as disbursements? Otherwise....

Have you seen the form? If you're confident to fill it up yourself and submit it yourself, then go ahead.

Like I advised you, try to speak directly to the vendor. Inform the vendor what is going on. Small amendment to the S&P will solve things. Vendor can get the balance purchase price faster too.

Things are almost completed. To start again would be a waste of time and resources. You will definitely be penalised by the bank.

This is as far as I can advise you. The ball's in your court now.

Au revoir!