What do you mean by document at the Court? That doesn't make sense. Where is your lawyer in this whole picture to advise you? Why is your agent telling you that the previous owner (I would assume that you mean the vendor/seller) has been paid the balance purchase price?

Do provide more info. Thanks.

1) No, it is the same. No consent is needed for a foreigner to sell.

2) Nothing different from local owners.

Duty is upon purchaser's lawyer to pay the 2%, and not the vendor's lawyer. How come the 2% went that side? It ought to have been retained from the deposit, i.e. only 6% of the remaining 8% deposit is forwarded to vendor. Your lawyer has to retain 2% and pay it to LHDN within 60 days from date of SPA.

Any delay in paying the 2% will entail a penalty upon the purchaser by LHDN (although you are paying on behalf of the vendor, but the penalty is imposed on you as the duty is imposed on you as the purchaser to make the payment)

For proof of payment, LHDN will always issue an official receipt.

Hi Dario thank you very much for the detailed reply..
yes, his loan has been approved and i have seen a copy of the letter...

so if the S&P has been signed (supposed to be signed today), is it possible to include additional clauses covering the tenancy in a supplement - meaning this should be read together with SPA in the event the transaction is aborted?

should it be mentioned that in the event that the house is renovated or improved in any way during the tenancy, i will not be responsible for compensating him if the S&P is aborted due to whatever reason?

yes good idea to collect the rent in advance.. actually i dont mind renting to him but i rather not rent if he is an unreasonable character..dont know lah as met him only twice - he will push for this and that and when i stand my ground, he will usually back off...I garang ma..Ha ha!

Yes, you can include new clauses in a supplementary agreement BUT your current SPA must first stipulate that parties can agree to include further additional clauses in the said supplementary agreement. I would recommend postponing the SPA for a few days (if the purc doesn't mind) and include all the terms in one go. Better and less hassle. If possible, try to do so, or else go for supp agreement.

Not only that, but do provide for the costs to dismantle or remove any fittings to be borne by him. Even renovation of structures - let's say he wants to break a wall to extend a room - what happens if (worst case scenario) - the SPA is aborted? I'm sure you would want him to basically reconstruct the wall and restore your house to its previous position. What if he paints the house with some colour which does not match your taste? If SPA aborted, would you have to bear the costs of re-painting the house with a colour of your choice? He ought to reimburse you for that. As such, do keep in mind the need for a clause to cover such scenarios.

Better still if you prohibit him from doing any major renovations at least until the first drawdown to redeem your existing loan is completed (am assuming that your prop is encumbered). That would be a safe timeframe. Once first drawdown is out, you can rest assured that the bank will thereafter release the balance purchase price (assuming that all other factors like stamping of the DOA/MOT has been done and perfected/registered).

Ok, thanks a million Dario

Dear all

I had some issue and seek advise from you all.

I keep the story short.


Question.
1. Agent ask us to sign a simple agreement for fixing the tile, before contracter start work, else they wont go
- Should I sign it? i think to take detail photo before and after only.

2. How to calculate fine issue, as owner is delaying us so much.
- Does lawyer said is true? only after pass check owner still cant give house only can fine?

3. Lawyer inform Water & Electricity bill still not cut, just they clear the bill
- Lawyer said it is better this way, as we dont need apply back the facility, we just to TNB & Water to change name to us only
- Does it better ask them cut, and give black and white?

4. Anything missout before I agree to pass check to them?

Thanks a lot for help.

5. Bank audit house is how? Seen like they did not do that.

I've appointed an agent to sell my house not inclusive of the furniture, which will be remove later.

During the 1st meeting with the agent, she advise me that if my unit is bumi lot, she can only sell it at 250k but if it is non bumi 270k. I told her that I will check and revert to her. In the mean time, she ask me to sign an agreement stated that the consideration price is RM250k negotiable. which i did.

A few days later, I managed to confirm with the developer that my house is non bumi lot and inform her of my intention to raise the price to RM270k. She however, told me that it is difficult for her to sell with that price.

A week later, she told me that she already has a buyer who is willing to buy the house at RM260k inclusive of my furniture. She even told me that she has collected earnest deposit from the buyer. Upon receiving the news I told her that I am not selling my furniture and I dont agree with the price.

My question, can the agent or the buyer take legal action against me for rejecting their offer?

1. According to what you had stated, there is a note which is attached to the SPA. Is that a schedule/annexure (lampiran) to the SPA? If there is already an agreement by the vendor to repair the defect, why the need for a new agreement? You need to look at what is stipulated in the SPA as all the important clauses much be included therein. Some terms ought to have been inserted by your lawyer to protect your interest from the very beginning.

2. Sorry I don't understand. What fine is this?

3. Yes, you may change the name but I am not 100% sure of the procedure, especially with water. Do check with TNB and your state water company.

4. You can't really withhold the cheque, unless there is still time to complete the transaction, i.e. the completion date has yet to fall. If the completion date has fallen, any delay from your side to pay the balance purchase price (BPP) will allow the vendor to charge late penalty interest of 8%/per annum upon the BPP on daily rest.

Whether or not the vendor has made good the repairs has nothing to do with the SPA as from what I understand, you did not put the duty to repair as one of the duties of the vendor in the SPA.

5. Do you mean bank valuation? Well, I'm not entirely sure about that but normally the focus would be on the renovations and fixtures in/outside the house and the last transacted price within the area only.

This post has been edited by dariofoo: Nov 16 2011, 05:01 PM

No, no one can force you to sell your house. I hope the agreement which you signed was not a blank letter of offer to purchase? If it was merely an option to sell, then you can revoke the option anytime. Do you have a copy of it? What does it say?

If it is a blank document, and if she has filled it up with the particulars of the earnest deposit, then you might be bound by a binding contract to sell the house.

In any normal scenario, the agent can't collect any earnest deposit without your agreement at first. It would be foolish of the purchaser to make payment of the earnest deposit without having sight of a letter of offer to purchase duly executed by you beforehand.

Hi Dario,

Do you know of any template document for tenant agreement for renting out my house that I can use?

Hi, just wanted to check. My vendor's lawyer wants a clause in a std SPA to be revised, which is proceeds upon signing SPA (i.e. 10% of SP) to be paid direct to vendor (i.e. vendors lawyers does not want to hold the $). i was advise by my lawyer that tho it is not common, there are some who agree to this clause. i was wondering

1) what are the potential implications should i agree to this clause?

2) and if I do not agree & the vendors lawyer insist, we will be in a deadlock situations. in that case, i suppose i will be able to insist on for specific performance? or if not, what are my chances of recovering the 3% earnest $ i have already put in?

thanks in advance

This post has been edited by kathlynn: Nov 17 2011, 04:22 PM

In the agreement that I've signed it is stated :

APPOINTMENT TO ACT AS AN ESTATE AGENT

I......NRIC No.....of....hereby appoint (name of the agency)to secure a purchaser for the property known as .....In acting as Estate Agent you are permitted to display signboard, advertise in any media or in any form to promote generally the sale of property, subject to thefollowing terms :

1) The total consideration prIce for the said property shall be at RM250 000 negotiable.

2) Payment mode are as follow :

Earnest deposit on acceptance of offer : 3% of consideration price
On signing theS&P Agreement : 7 % of consideration price
The balance to be paid within a period of 90 working days.

3) I hereby agree to pay you a fee as follow :

The full fee paYable as calculated above is RM 3%......only

4) The professional fee is payable in full upon the signing of S&P agreemnt

5) In the event that the Earnest Deposit is paid but the transactin aborted before the S&P agreement is signed, I agree to pay you a fee of 50% of you full fee, whichever is lesser.

6) In the event that the S&P Agreement is signed, but subsequently aborted of any reasons, I nevertheless agree to pay the full fees.

7) This appointmet is on the Exclusice basis

8) In the event that this appoinment is on the basis of Exclusive agency and I have sold thepropety myself or by a third party. I agree to pay to (name of the agency) the full fees as compensation.

9) This instruction shall be valid from **** to **** and deemed renewal for a period equivalent to the original term unless either party gives notice of termination in writing.

10) I hereby agree that I shall not be entitled to terminate this appoinment during its period of validity and in the event I shall purportto terminate whether in in writing or otherwise this appintment before its due expiry, I shall be liable to pay...the full fee as compensation.

11) I agree to bear the mandatory 6% government service tax.

12) I hereby authorise (name of the agency) to act as stakeholder and to accept on my behalf the earnest deposit and to deduct the professonal fee from the payment due to you.

Name : ****
IC :***
Date :****


Luckily this is the only agreement that I've sign. Frankly I have no idea that it can be this complicated.Maybe I am just unlucky to get SMART agent who thought that they can do whatever they like. I did try to call the agency so many times but no one pick up the line. I am thinking of reporting this issue to the agency and ask them to get another agent to take over since the agreement is stated clearly that I am appointing an agency and not the agent.

Thank you Dario for your time and advice.

You'd better appoint a lawyer to do it. Anyway, the tenant always bear the legal fees and stamp duty, so why worry?

How the 7% or 8% balance deposit is to be paid is at the choice of the vendor.

So if the vendor instructs his lawyers to demand for it to be paid to the vendor directly, you have to agree with it. Don't have to worry as it makes no difference if the cheque is paid out directly to vendor or to vendor's solicitors. Most important is that the SPA is executed and the ball starts rolling. It's really no big deal.

asfa1975:



Clauses 7 until 10 are important to note. So now you're bound by the contract until the end of the tenure. Bear in mind that once it ends, you need to send in a letter of termination, as clause 9 clearly states that renewal is automatic.

This post has been edited by dariofoo: Nov 18 2011, 10:30 AM

ok! thanks!

need advice on this. My s&p already signed and when i collected the s&p from lawyer office yesterday i realized the make mistake on parking lot no. the developer consent stated different number but s&p stated different. I asked about this and just now the lawyer office called and said that it is in the s&p that is wrong and they will make amendment and lawyer will initial the amendment. is that the correct way to do?

Small matter only as it is merely a clerical error and does not vary any of the major terms in the SPA.

Yes the lawyer can initial the amendment but if you want to be entirely sure, you can insist that you want to initial it as well.

Thanks dario for your reply