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Hi Dariofoo & All There,


I hv taken yr adv by issued bank draft as the deposit for that sub sale property. Hence, our loan is in the middle of processing, I hv some enquiry need yr help :-


1) the owner is working as a management staff in the same bank that process our loan, will it be advisable if we take up the loan of this bank as well? As loan agreement & SPA also will be given to the same bank if we taken the loan, will it be secure??
(I'm afraid differences in between the vendor's & purchaser's interest) (or the sum of purchased $$$ being transfer to the owner without our notice etc....., as once being conned Im really can't trust any of them....)

2) what should I beware of before signing "Letter of Offer" from bank? Is there any penalty if signed then withdraw?

3) usually how long should we insured for MRTA?

4) How to proof whether he is the real genuine owner of the property? Even though he has showed us the SPA (developer hv not handover key to this owner yet, maybe next month).

5) will the owner received Notice of Assessment & Quitrent for this kind of property situation? (developer hv not handover key to this owner yet, maybe next month).

6) is owner / agent / lawyer need to be present while we signing "Letter of Offer" from bank?


Pls help, pls help.

Thank you.

---

Added on July 19, 2011, 11:54 pmHi Dariofoo,


Well noted with SPA matter, will ask agent to arrange for signing. As the agent very siding the owner, he never care of our interest! So everything I must find out myself.....

Btw, how to proof whether he is the REAL owner??
Can he con us by signing SPA with us if he is NOT the real owner??
Upon signing the SPA, the 10% 1st payment is pay to who?? The Legal firm / owner??


Pls help.





This post has been edited by TheFear: Jul 20 2011, 07:18 AM

TheFear:


1) As long as there is no conflict of interest in the view of the bank, there should not be any problem. If you have trust issues of your own, go apply from another bank then. Check with your loan agent and see how it goes.

2) Read all the clauses. Everything is important. With regard to penalty, you might want to check with the loan agent as different banks have different policies with regard to same.

3) It ought to be throughout the loan period.

4) If got title, get a copy of the title. If no title you can check with developer as their records will state the latest position with regard to ownership of all units.

5) No.

6) Agent need to be present as he is normally the witness. But make sure that owner has signed it as well. Insist for a copy.

Upon signing of SPA, the deposit is normally paid direct to the vendor.

Hi dariofoo,

Hope you can helps me on this. I got quotation from panel lawyer on loan legal fees, but somehow after check with other buyers(same type of house, same residential), my quotation is higher by ard 2K.


Loan of RM 329,932

LEGAL FEES

Facility Agreement - RM2759.52
Charge -RM275.95
Consent to Charge - RM300
Entry & Withdrawal of Private Caveat - RM350
Statutory Declaration/Letter Undertaking - RM200
Service Tax 6% - RM233.13
TOTAL - RM4118.60

DISBURSEMENT

Stamp Duty on Facility Agreement - RM1680
Stamp DUty on Charge - RM40
Stamp Duty on Letter of Offer - RM20
Registration Fee on Charge - RM120
Registration Fee on Entry of Private Caveat - RM340
Registration Fee on Withdrawal of Private Caveat - RM80
Registration Fee on Consent to Charge - RM50
Apply Consent to Charge - RM50
Certified True Copy of Title - RM50
Affirmation Fees on SD & Stamping - RM50
Title Search Fees - RM180
Bankruptcy Search Fees - RM40
Purchase Loan Document from Bank - RM220
Printing Charges - RM150
Transportation Fees - RM300
Telephone, Fax, Postage & Miscellaneous Charges - RM50
TOTAL - RM3420

GRAND TOTAL 7538.60

Hi Dariofoo,

Thank you for the help.

Im confused here, while signing Letter of Offer (loan) from bank, owner needed to sign it as well??

So, after if we hv signed the SPA, we give the owner 10% down payment of the purchased amount,
then the balance purchased amount which owner's bank & purchaser's bank will liase to each other
and transfer the balance $$$ right??

In that case, will the "Title" be finally transfer to purchaser name but hold by the purchaser's bank??

Thank you.

Sorry mate I must've read your question too fast. At quick glance I read it as Letter of Offer to Purchase the property.

Letter of Offer from bank is to be executed before the authorised bank officer. Vendor and property agent is not involved in this. Humble apologies.

Yes, that is right. If you're taking 90% loan then there's nothing else for you to get involved in at the moment. But if you're taking less than 90%, then you have to deposit the differential sum with your lawyers as stakeholder. Only then will your bank disburse the redemption sum to the vendor's bank.

Yes, but title only applicable if there's individual title. Otherwise, it will be by way of Deed of Assignment.

ern43:


Bro, can you compare with the previous samples in this thread to get a fairer idea? There's about 30-50 samples of quotes with comments for you to compare. If still got doubt do come back and ask

Hi Dario,

I'm going to meet the agent and the seller's lawyer to look at the seller's apartment title, SPA, latest quit rent receipt, and other relevant documents. I know the agent would have the Agent Authorization Letter.

Does the lawyer have similar letter to state that the lawyer is acting on behalf of the seller?

If the documents are satisfactory, I will give the agent 3% deposit by cheque. In the event that the seller does not want to sell to me anymore before signing the S&P, I want to ensure that I get my deposit back, plus all legal costs that I incurred.

Do I need to prepare a letter stating the above? If so, can the seller's lawyer sign the letter on behalf of the seller?

No, it is not the norm for the lawyer to have such letters. If the vendor represents that xxx law firm is acting on his behalf, that ought to be good enough. Your lawyer can then communicate with them.


Since there is an agent involved, there would be a letter of offer to purchase which the agent would request you to sign. If you want to add certain terms like what you mentioned, inform it to the agent and see if the vendor agrees to it. Everything is negotiable, but the terms must be mutually agreed by both parties.

Of course, the normal term would be that if the vendor refuses to proceed with the transaction for whatsoever reason, the earnest deposit must be refunded. Some letters of offer go further and states that the vendor must also give a sum equivalent to the earnest deposit as agreed damages to the purchaser (this can cover your legal fees, or any other incurred costs to date). Some allows for specific performance (SP). Some precludes SP. Read it properly before signing.

Good luck

Hi all,

I have a question :

1998 - Mr. A purchase a house at RM45k, with RM25 d/p and RM20 bank loan.

After a while, Mr. A sold this house to his two brothers, Mr. B and Mr. C for RM65k. However, they didn't sign any SPA, nor transfer the house ownership (Geran) to them. Mr.B and Mr.C pay Mr.A RM45k with cash and continue to pay the bank loan.

2008 - the bank loan is completed. Mr. A transfer the name in the Geran to Mr. B and Mr. C, and there is no SPA as well.

2011 - Now Mr. B and Mr. C sold the house for RM62k to a buyer.

How much is the Real Property Gain Tax for Mr. B and Mr. C ? How should this be calculated ?

Thanks for all inputs !! Appreciate it

This post has been edited by trumpfnx: Jul 21 2011, 11:44 AM

In 2008, when the transfer was done, was it a transfer without any consideration out of love and affection, i.e. like a gift? If that is the case, the cost of acquisition would be nil.

Now that the price of disposal is RM62k, the gain would be RM62K less 0 = RM62K.

However, there are allowable expenses which may reduce the gain, i.e. renovation costs, legal fees (in 2008 and also 2011), stamp duty (in 2008, when the transfer was done).

Let's say the expenses are RM20k in total, so:

RM62K less
RM20K
______
RM42K

X5%
______
RPGT - RM2100.00

per pax is RM1050.00



This post has been edited by dariofoo: Jul 21 2011, 12:16 PM

Hi dariofoo,

Can you please help me?

We bought a leasehold property from developer and want to sell it now. According to the developer, the master title has already been subdivided last year but the title name is still under developer. They have submitted application to the state govt for their consent to transfer name to individual owners. My questions are:

1. Can we still sell the property or do we have to wait for the consent to be obtained?

2. Usually how long will it take for consent to be obtained?

3. Regarding the one time exemption for RPGT - the property is under my husband and my name, if we apply for the exemption, does it mean we have both used up our one time exemption?

Thank you so much.

1. You can still sell it. The developer subsequently can undertake to do a direct transfer of title to the new purchaser.

2. Very hard to tell, as it depends on the efficiency of the local authority, in particular, the person in charge of your file. Normally in an SPA where consent is required to be obtained, a time frame of 6 months is given. Sometimes, even 6+3 months.

3. Yes, both would be deemed to have used up your respective one-time exemption.

Why the lawyers cannot respect the date to sign the SnP stated in the "Offer To Purchase agreement? I have my apt for sale agreement signed 5 weeks ago but until now both side lawyers (my side and purchaser side is delaying the SnP signing. Everytime call the lawyer, always blame the other side lawyer slow in preparing the SnP and slow in coming back with amendments etc...

What a purchaser or vendor can do in order for the lawyers to speed up their work beside calling them everyday to ask about status? I was wondering why the lawyers cannot respect their clients dateline for SnP to be signed within a month after sign offer purchase agreement. What happen after sign the SnP, the lawyers delay again in their duty to process documents for the release of payment from bank?

I am thinking hard to change lawyer but what advantage it is to me if all my documents are with my lawyer?

I just informed by my lawyer that purchaser loan solicitor will release the first payment to my bank this week. My lawyer say it needs another 1 month atleast to complete a whole transaction. I wander what is the procedure that takes so long? how can i speed up the process as is already since 1 year for this transaction.

thanks in advance.

Ahhh......thank you so much dariofoo. You just lifted a huge burden off me. I was so troubled till I couldn't sleep a few nights ago coz a property agent told me that I can't sell due to the title not being under my name.

Just a few more questions,

1. while waiting for the consent, is the property still under my name?
2. until when do I need to service the loan?
3. will the purchaser's bank refuse to approve loan due to this reason?

To the others, if you guys want to buy a hamper for dariofoo (as suggested by someone in this thread), do include me as well. Hope there are more people like him in this world

Hi dariofoo,

Please advise me.

Direct purchase from Owner without involvement of Agent. However, My brother is the actual buyer. I'm just the middleman (Different State)

Owner requested for a 2% deposit to seal the deal.

Questions:-
1) Any document that can bond the Owner and My Brother for this 2%?
*Please note that my brother is not physically present for the deposit. Can I sign behalf of him? What sort of documents needed?

2) Can I ask my brother lawyer to submit the cheque (2%) to the Owner/Seller?
*Brother in Ipoh (Lawyer also Ipoh) however Seller in KL

Thanks in advance

got it, do i compare with previous post or do i just post it here?

Original documents? If photocopy only what's the big deal? Anyway, they can't stop you from changing solicitors. They can't hold your original documents as a 'ransom'. However, out of courtesy you have to pay some fees to them even if you want to change lawyers at this stage. Some work has been done.

Before you opt to take such a drastic measure, you might want to ask for copies of correspondence (should be e-mails) between both solicitors. See for yourself where the delay is coming from.

What are the details of the property? Perhaps it is a leasehold property that requires consent from the state authority, hence the delay.

As to what you can do to speed things up, well, is is mostly your solicitors' duty, but perhaps you can make sure that all documents from your side have been handed over to him.

1. yes
2. until your loan is redeemed by the first release by the purchaser's financier
3. what reason?