What is the procedure to be carry out if directly purchase from owner? How to make those booking form? Is it need to be made infront of lawyer?

hello..

what the diff betwwen DOA vs MOT ?

tq

Hey guys sorry if I'm asking this in the wrong thread.

I may be buying a house directly from the owner with no agent involve.

Can anyone let me know the procedure of buying a house like first need this then second need apply loan etc.

You can appoint an agent to help you sell the house on your behalf, or you can do it on your own - you can check surrounding units for sale to gauge a price or you can browse online as well.

This post has been edited by dariofoo: Aug 24 2011, 10:34 PM

Booking form can be prepared on your own. The terms and conditions would be up to you and the seller to discuss and agree. Parties do not need to sign it in front of the lawyer. Any witness will do. If you're going to appoint a lawyer anyway or if you already have one you can get request their goodwill to prepare a booking form/letter of offer to purchase for you.

DOA - Deed of Assignment - between vendor and purchaser - where there is no individual or strata title (geran), the assignee (purchaser) is the beneficial owner of the property and the DOA is the proof of ownership.

If it is assigned to the bank there will be another DOA between the purchaser and the bank, whereby the bank is considered the beneficial owner of the property, until it is revoked by way of a Deed of Receipt and Reassignment, whereby the bank will re-assign it to the purchaser/borrower.

MOT - Memorandum of Transfer - is a document whereby the vendor transfer his ownership of the property to the purchaser - only applicable in cases where there is an individual or strata title. Once the MOT has been stamped and presented for registration, the land office will issue a new Geran (Issue Document of Title) which will reflect the purchaser's name as the registered proprietor.

First get a lawyer to represent you and start the ball rolling by preparing a draft SPA. At the same time, or even before you sign the SPA, you can apply for a loan. Best to get a loan approved with the initial valuation which matches the purchase price (assuming you're taking 90% loan) before you sign the SPA.

Have a situation here.

Steps :
1. Signed booking form purchasing a sohu with commercial title, RM200k, 500 sqft.
2. Paid booking fee of RM3k and cheque cleared.
3. No panel bank available. Based on developer, panel not finalized yet.

We can only wait while waiting for developer to get a bank panel for loan.

2 months later --
Developer called and said that the design is changed :
- From commercial title change to residential
- From 500sqft changed to 800sqft
- From RM200k changed to RM300k

Now the developer ask me to sign the booking form which is amended using pencil. Ofcoz, I'm not that naive.

Documents I have now :
- Receipt of RM3k booking fees
- Booking form stated initial design

What are my options?

P/S : Forgot to add.
I want the initial design and price ofcoz. Not willing to pay extra for a bigger unit.

This post has been edited by suiteng: Aug 24 2011, 05:04 PM

suiteng:


Scan and put up a copy of the booking form here. If you worry about privacy you can black out the personal particulars. Just need to read the fine print.

Hi thanks for the reply, so in order to apply for a loan.. do I need to get any documents from the house owner such as grant, photostat ic or anything from him?

If havent's signed SPA yet - Letter of offer to purchase, previous SPA and grant (if any) would be required.

If SPA already executed or final draft prepared then a copy of that would be requested for as well.

Thank you, Dario, you have been very nice, even though the problems might seem petty to some, i appreciate your input!

Legal fee for consideration of Rm 175k : 1679.70
Entry and withdrawal of caveat : 350.00
Preparation of charge : 300.00
Service Tax : 139.80

Total : 2469.50

Towards Disbursements

Stamping on ;
Original FA - 880.00
Copies of FA - 20.00
Copies of 16A - 30.00
Original letter of offer - 20.00
SD - 20.00
Affirmation of SD - 40.00
Search - 120.00
Purchase documents - 200.00
Register charge - 110.00
Misc - 100.00
Transport - 100.00
Telephone - 100.00
Entry and withdrawal of caveat - 450.00
Bankruptcy Search - 30.00

Total = 2220.00


Total fee = 4689.50

-------------------------------------------------------------------------------------------

Taking instruction in preparing agreement for excution and completion of purchase fee = 1801.00

Legal fee for CHKT II = 200.00
Goverment tax = 120.10

Total = 2121.10

Towards Disbursements

Stamping sale and purchase agreement = 30.00
Stamping memorandum of transfer = 10.00
Stamp duty ( 50%) = 1430.00
Registration of Transfer = 350.00
Statutory declaration preparation and affirmation = 10.00
printing charges = 80.00
transport = 80.00
telephone / misc = 80.00
search = 80.00

Total = 2150.00

Total fee = 4271.10

--------------------------------------------------------------------------------------------

Dear Dario,

Can help me see whether the legal fees for the above loan and snp is reasonable or not ?

many thanks

broken_string: You must tell dariofoo how much discount you ask from the lawyer.

many thanks

This post has been edited by broken_string: Aug 26 2011, 11:03 AM

Brokenstring,

There's a lot of samples of notes of charges and my comments thereto in this thread. Do take a look. The legal fees are quite standard and only disbursements differ.

What jason.hsbc meant was if you had asked for discount (or are planning to), there's no need to put up the note of charges for scrutiny because everything will be marked up by the lawyer to make up for the deficit in the discount given.

Most (but not all) law firms do that.

Good luck

thanks alot bro.. i dont intend to ask for discount actually.
just wana see whether am i overcharge or not only.

will check out the thread

appreciate your advice.

Here's the original booking form.


After numerous attempt to get a banker for loan, we managed to check with all the banks and there's no panel being approved for the project.

Then, we received this letter.


P/S : Note the final paragraph.

Kinda absurd to change the title, size, and price of the property purchased. Unfair to the purchasers.

What are my options?

Edit, fresh from the oven. Just received these letter, after reading it doesn't sound good to me... developer ask us to acknowledge the letter to ask the lawyer to prepare fresh S&P with new price. Could you help to elaborate a bit on the terms?


From what I see, they wanted to appoint a lawyer to draft the S&P with the new price but it require our acknowledgement. Initially, we've already sent a letter to the lawyer to draft S&P based on the original price, not this new price.

This post has been edited by suiteng: Aug 26 2011, 05:48 PM

Hi Dario, the lawyer didn't give me a time frame. You say earliest one month means - successfully got his name on the strata title?

Got latest updates from the vendor: "The documents from the developer and banks are complete. They will draft a statutory for me to sign and then they will send it to the land office."

"They" means the vendor's MOT lawyer... I'm pretty confuse on the thing he was saying. Which state he is now? Is it still can be done within 1 or 2 months?

I have other questions about the sales
1. In my SPA, I will put a clasue saying that 6 months for the vendor to get his name on the title before transfer to me. Is the 6 months enough? because the vendor ask for a year.

2. I thinking to move in the house (rent the house for 70% of market rate) after signing the SPA. Do I have the right to rent it out to other people?

suiteng:


Booking form doesn't stipulate that many terms and conditions as there usually would. What it does represent to you is the unit and price of the property.

It is clear that they don't even have a license and advertising permit for the project. That is why at the moment, even an SPA can't be executed by the parties. It is a mere booking collection exercise most probably done to gauge public's response to the project in mind.

Once you sign the fresh documents you effectively waive all your rights against the developer with regard to the representation made in the first booking form, especially in relation to the unit description and price. So option one would be to agree to such waiver and just execute the documents.

Option two would be to go against the grain and assert for your right to be sold a property befitting the description and price as stated in the booking form. It would be difficult if you're on your own, but if the developer is faced with a class action of perhaps 200-300 purchasers who have placed their bookings and who now feel that they have been misrepresented (coupled with some media publicity) - then perhaps there can be a chance that they would give in and proceed with the initial development plan.

But personally I doubt if that would happen. There must have been a reason why they had to make the change. However, it is not disclosed very much in detail in their letter.

If you want to go for option two - appoint a lawyer and send out a legal notice. Your lawyer would receive a reply from their lawyer - and that reply can shed more light in this matter.

Good luck