The developer offered free legal fees for SPA so the developer's lawyer handle for all. Yes, me and my wife are buying it together. And I am consulting with the bank lawyer on this issue at this moment.

I also want to get the second opinion on this issue:)

This post has been edited by naing: Nov 24 2010, 09:51 AM

In that case why don't you get your bank lawyer to advise you first, and if you have any enquiries, feel free to come back and pose it here. In the interim, you might want to confirm as to who has the duty to apply for state consent? You or the solicitor in the S&P?

Can someone please clarify this for a first-time home buyer, buying through subsale - how many kinds of legal fees and stamp duty is involve in the process.
1) legal fees + stamp duty for s&P
2) legal fees + stamp duty for title transfer
3) legal fees + stamp duty for bank loan

Have to pay for all three of the above, is this correct? Thank you in advance.

1) and 2) is combined - you pay your S&P solicitor to do the transfer of title for you as well. Stamp duty for S&P is only RM10/copy, while stamp duty for transfer is the one which is more costly

3) is correct, but once again you may appoint your S&P solicitor to act on your behalf as well, thus saving some money on disbursements (expenses). Legal fees, however, are fixed.

Hope the above helps

I know stamp duty for title transfer amounts to a few thousands, I thought have to pay similar amount for s&p as well. Relieve to know that's not the case.

Thanks for your clarification!

i got quote before discount for the following. please advise what rate should i slash to? thanks.
1) SPA & title transfer for property rm560k @ RM17,176
2) loan agreement for RM468k @ RM8,326
3) loan agreement for RM369k @ RM5,383
Need to execute ASAP therefore appreciate forummers advise ASAP as well.
Many thanks!

Kochin,

If you notice the earlier posts, the advice rendered is limited to the specific charges and whether same is reasonable or otherwise.

If you need advice, please copy and paste the note of charges/ invoice given to you by the firm in order for us to take a look at it in detail.

The information given above is insufficient.

Cheers

usually how close u guys follow up the status with lawyer after you sign your s&p?

call them every week? or email them?

There's no hard and fast rule. Some people can execute their S&P and move on with life until they get a call informing them that the keys to their new house are ready for collection. Some insist on calling every single day to find out the latest position. Most, however, are in between.

Basically you can follow up with your solicitor at the following stages:
1) After signing the S&P, to get a copy of the stamped agreement;
2) After you have executed your loan documentation with your loan solicitor, to find out if your loan solicitor has written to your solicitor and the vendor's solicitor/ vendor's existing financier;

3) To find out if the cheque for redemption of the vendor's loan has been issued;
4) To find out if the property has been redeemed and that the original title and duplicate charge has been handed over to your solicitor;

5) To enquire if the cheque for the balance purchase price has been issued to the vendor, thus completing the transaction so that you can collect your keys.

If loan amount RM256,580, legal fee charged for loan agreement is RM5029.
Is that amount reasonable?

Thanks.

Can you be more specific? Can you post the whole invoice/note of charges here?

Sorry for not too specific

Actually, i still havent get the legal fee's invoice/note of charge.

My LA legal fee is add into loan package. Legal fee for S&P is waived.
My loan amount 90% =256,580.
The bank's offer letter quote me RM5029 for LA legal fee.
The problem is after i sign the offer letter i only thought of i havent check the invoice/note of charge of legal fee.
So i don't know what being charge on me.

I havent sign S&P and Loan agreement yet. Just to ask:

Question:
1) Am i still able to get discount from lawyer to deduct from LA legal fee before sign S&P and LA?(i know is illegal for lawyer to discount)

2) if can deduct, then the loan amount to disburse as stated in offer letter can changed from banker side ?

Thansk.

cngi:



Sorry la boss, better you ask your lawyer about all this 'discount' issues. I'm in no position to advise you in all that.

You can still insist for the invoice as the sum of RM5029 is quoted to you based on what the lawyer gave to the Bank.

Get it from your agent/bank and post it here for us to comment on the disbursements/expenses charged to you. Legal fees and stamp duty on facilities agreement is fixed.

hi dariofoo,

Need to get some opinion from you. My sister-in-law (SIL) want to do a transfer of her property to my mother-in-law(MIL). It’s a low cost unit in Shah Alam. Particular as below;

1) Unit with freehold title
2) MOT has been perfected previously with the name of MIL & SIL
3) Free of encumbrances
4) Current market value about RM60,000

SIL wish to transfer her 50% portion to MIL. She doesn’t want to have ownership to the house anymore. Can this be done through “Love and Affection”? Heard that there’s some discount on the fees if done thru this way. Some of them mentioned sub-sale, but SIL didnt plan to get any moeny from MIL. Roughly how much need to paid for the fees?

Thank you.

hi,

may i know what if the s&p completion for freehold take more than 3+1 months due to some reason, what will be the consequences for this?

thank you

When you say 'some reason' - are you saying default by purchaser or vendor?

If default by purchaser, the contract would be deemed to have been breached by the purchaser, and the vendor is entitled to forfeit the 10% deposit as agreed liquidated damages. Other sums collected by the vendor, i.e. differential sum (if any) shall be refunded to the purchaser.

In practice, there are situations where the vendor condones the delay and accepts the late penalty interest as compensation, as it would be quite a hassle to start all over again with a new purchaser, etc.

hi everyone, hope u all here can give advise on my problem below:-

i booked a house in puncak jalil ( under talam ) and pay agent fees in april 2010
i've signed spa on 16th june 2010
the dev ( talam ) respond on doc ( i dont know what it calls ) in sept 2010
to date i am still waiting redemption letter fro RHB for me to submit the gov loan appl.
the problem is, the vendor is keep delays in handing the redemption letter. what i understand from rhb, the vendor has special request to bank in terms of loan balance amount with the bank. we still can not submit the loan till now and what i understand from lawyer the spa valid till early jan 2011 only.
since we are renting a house, the tenancy ends this dec and the owner dont want to renew it since we tell them we will be renting the house for 4-5 months more. we have to bear a cost of moving and renting anew house!

what sort of legal actions can i take to vendor right now?
what kind of damages fees i can claim to vendor?
can i cancel the whole spa now?
if cancel, will i get the whole deposit backs? plus any interest or compensation to my loss?

it doesnt make sense any vendor wantto delay the buying process almost a year. normally people sell house to get money fast.

please advise me.

tq

---

Added on December 1, 2010, 11:26 amya, in shortest way - my spa ( for leasehold ) takes more than 3+1 to complete. default definetely by VENDOR.

HOW?

This post has been edited by PabloPicasso: Dec 1 2010, 11:26 AM

PablePicasso:


1) When it comes to properties sold subject to the fulfilment of a certain condition , the usual time period of 3+1 to complete the transaction would not apply. Look at your S&P again. When does time start to run?

From the information provided i gather than the property is of the following nature (correct me if i'm wrong):
a) Leasehold;
b) Situation within Selangor; and
c) Individual title not out yet.

In such cases, in an ordinary agreement, time would run from the date of receipt of the LETTER OF CONFIRMATION from the developer (that is what we call the doc you're referring to).

As such, your 3+1 would run from Sept 2010.

With regard to the delay by the Vendor, there's a few issues to be addressed:
a) Who is applying for the redemption statement? The vendor himself or your solicitor (on his behalf)?
b) What is the time frame given to the vendor to obtain the redemption statement? Check your agreement.

* normally, 14 days would be given to the vendor - calculated from the date of request by your solicitor/ financier's solicitor

If it exceeds 14 days, there would be an extension of time given to you to complete the transaction, i.e. it goes beyond the 3-month period stipulated in the agreement - wherein you would not be required to pay late penalty interest even though it exceeds 3 months.

* once again, look for this clause in your agreement. It should be there.

As such, you need not worry about the completion date. You are well protected there.

With regard to your current tenancy, you would have to sort it out with the landlord personally, as you had personally committed yourself to surrender vacant possession to him within the 4-5 months' period. Try to get another extension of time. You may have to pay extra rent out of your own pocket.

Hope the above helps. Do ask if you have any further queries.

tqvm for you reply.

a) Who is applying for the redemption statement? The vendor himself or your solicitor (on his behalf)?
both parties are applyg. But i manage to talk to RHB and find out that the vendor is the one who have special request to adjust the loan amount cause the bank delays and up and odwn letter to hq.

b) What is the time frame given to the vendor to obtain the redemption statement? Check your agreement.
as u said 14 days.

but i am just curious theres nothing i can do to vendor?. he is not coperating enough even i call and insist him to speed up the redmp letter applctn.

what should i expect if the 3+1 end without no document ( redemtn letter ) from the bank?
what sort of claims/fees or anything that i can ask from vendor?

the whole process is really frustrating. ya abt the rented house, we will sort out personally. i will have to move out anyway cos i tell the owner i would only rent out till jun 2011 and he wont allowed it. we already rent the house for 2 years and it ended dec 2010.

PabloPicasso:


How can both parties apply? Either the vendor does it on his own, or he authorises your solicitor to do it on his behalf. Your solicitor can call up the vendor's bank to follow up as well. There's no harm in that. Just need a bit of initiative on his side.

If the time period for completion of the transaction is up and it is due to the default of the vendor, you have two options:

* once again, check if this is provided for in your agreement

a) Go to Court for an order for specific performance to compel the vendor to sell the property to you;
b) Give the vendor notice of termination of the contract, wherein the deposit and all other sums paid by you will be refunded to you PLUS a sum equivalent to the deposit shall be paid to you as agreed liquidated damages.

With regard to the tenancy, even if it expires, you can continue staying there provided you pay monthly rent and the owner accepts the said rent without protest. This is what we call a monthly tenancy. It can be terminated with one month's notice. So you can buy yourself a bit of time there as well.

Good luck