I have recently purchased an apartment unit and put in 15% for the down payment. I received my copy of the stamped SPA yesterday but to my horror I realised the deposit is indicated to be only 10% in the SPA. I am rather worried now and wonder if something is wrong here?

Was all of the 15% went to the vendor immediately upon signing of the SPA? Or was it 10% to vendor and 5% retained by lawyer. Then if you're taking a 85% loan, things would make sense.

If you're taking a 85% loan, then the 15% could be like this (10% deposit + 5% differential sum)

If 15% was paid to the vendor, then, based on how many lawyers are involved in the transaction, there has to be acknowledgements made. If there's one for each party they can write to each other. If just one your lawyer needs to call in the vendor to sign a letter confirming the typo error and that he acknowledges that 15% was paid.

However, I would not advise that the SPA be amended to 15% deposit as this will be the sum to be forfeited by the vendor in the event that the SPA is not completed through your own default. The deposit is always stated as 10%. So, if the SPA is aborted by you, only 10% will be forfeited and the 5% has to be returned to you. Professionally, that extra 5% should not be released to the vendor now. It has to be retained by the lawyer as stakeholder until it can be released together with the balance loan sum.

In my case, I have 2 properties, sold 1st property last year.
2nd property, I'm staying, bought in 2006 for RM 270k, now strata title out and I need to execute MOT and doing refinancing at the same time at higher price RM 400K.

Questions:
Since I have only one property now, MOT is executed within allowed period, and original purchase price is lower than RM 350K, do I qualify?

Thank you for the valuable info, Dario.

For your info the 15% was paid to the vendor's lawyer through my agent upon signing of SPA. I am taking 85% loan.

Is it a standard practice that the SPA indicates only 10% deposit and the rest is retained by the vendor's lawyer? I'm hoping it is because this is my first time purchasing a property and thus have very little experience in this.

If it was a typo error and requires the lawyer for each party to rectify the error in a letter (i.e, nothing to be amended on the SPA), will this delay the disbursement of money from the bank and also transfer of ownership? Right now they are in the process of getting consent from developer and stuff.

I am rather worried and wish to be able to get in touch with my lawyer but today is a Sunday so...

I suppose you're asking whether you qualify for the 50% rebate off stamp duty right?

In your case, you do not qualify as the property was purchased in 2006.

Standard practice is 10%. I've never seen any other figure when it comes to deposit upon signing of SPA. 10% appears to be the customary sum which both parties always agree on.

If 15% was paid, then the vendor's solicitor would be wise to only remit 10% to the vendor and keep the 5% differential sum as stakeholder.

Differential sum :

Purchase price (less) deposit (less) loan sum = differential sum.

In your case the 5% can be deemed as differential sum. Look at the cover letter by the purchaser's solicitors when forwarding the cheque for the 15% to the vendor's solicitors. It should be cc to you as well.

Nothing to worry and nothing to amend as you've stated that you're taking 85% loan. As such, surely the 5% is the differential sum forwarded to the vendor's solicitor as stakeholder. There is no error here. The deposit is still 10% as stated in the SPA.

So don't worry about it. Should be ok. Just confirm again with your lawyer tomorrow. Good luck.

Hi,

when do we pay the fees for snp?
once signed snp or after finish process or before even start sign? >.< can pay half then continue the rest payment o not?

Customary practice is full payment of fees same time as signing of SPA. If want to pay half upfront can nego with the lawyer. It's up to both parties to decide. But very rarely would the lawyer allow you to pay at the end after the whole process is finished.

Thank you so much bro. Your explanation is really helpful. Your help is much appreciated!

Regarding 50% stamp duty, I checked the link to stamp duty, there is no similar situation, question:

In my case, I have 2 properties, sold 1st property last year.
2nd property, I'm staying, bought in 2006 for RM 270k, now strata title out and I need to execute MOT and doing refinancing at the same time at higher price RM 400K.

Since I have only one property now, MOT is executed within allowed period, and ORIGINAL purchase price is lower than RM 350K, do I qualify?

Just wanna some confirmation about the MOT. It's about the 50% discount, i am eligible for the rated discount. My query is:

1) Is there any standard form for me to fill in order to get MOT?.
2) If so, where to get the form?.
3) Is a Statutory Declaration of my status for 1st housing purchase is needed?.


Thanks for your kind help...

This post has been edited by realmcord80: Aug 1 2011, 11:52 AM

Bank officer told me i can actually sign snp on bank branch, is tat true ah?

Bro,

I have answered your question yesterday. But it's ok, I'll make it clearer for you.

Clause 5 which I had explained in that topic on Stamp Duty clearly states:

5.The Sale & Purchase Agreement is executed on/after 01.01.2011 but on/before 31.12.2012

LHDN does not look at date of MOT. It is date of SPA which matters.

So, you will not qualify for the rebate.

Sorry,mate.

What do you mean by sign snp on bank branch? Sorry am not clear on that.

eidt. cheers.

This post has been edited by cutealex: Aug 1 2011, 02:09 PM

First page of this thread states:

Please do not PM me for any legal advice, nor ask for any recommendations for law firms. I do not give out any advice via PM. Please post your legal query at this thread so that everyone can benefit from an answer.

Hi dariofoo,

I have a question regarding the redeemptions.
I am using purchaser's lawyer, so meaning I have not appointed my own lawyer to sell my house.

From the lawyer, they said my first redeemption cheque will arrive around 1 month to 2 months time after the bank have process the transfer of title or something similar (I am not sure here) and will issue me the first redeemption cheque. So my question is, what is this first redeemption cheque?

Soli i mean the loa agreement and also snp can sign on bank place instead of lawyer firm

First redemption cheque would refer to the cheque to redeem (settle) your outstanding loan with your current bank.