I gather that what you mean is that the property has been redeemed and the vendor's existing financier has released the original document of title to the vendor's solicitors, who have yet to pass it to the purchaser's solicitors or the purchaser's financier's solicitors.

There would normally be a time period for them to hand over the said documents failing which the completion date would be automatically extended vis-a-vis the delay. Am sure your solicitor can do the math and calculate the delay. If the delay is from the vendor's side there's nothing to worry.

I'm also not sure if writing a letter is the write way, but i'm sure that it is the right way.

pohsoon:


Searches a bit pricey at RM255. Perhaps you can ask for a breakdown on that? Others seem alright.

Barca made my day

Here you go:
http://www.elawyer.com.my/legal_calculator_info.php

The link to calculate stamp duty payable is also there.

50% rebate is for stamp duty on S&P only

1. Yes you can sell it.
2. Pay/incur means legal fees? You can use the legal fees calculator. The link to the website is in my previous post in this page.

This post has been edited by dariofoo: Mar 10 2011, 10:10 AM

Good question.

Well, it is the common notion that the property is sold on an 'as is where is' basis. What you see when you view the house and subsequently book it is essentially what you get.

When you subsequently sign your S&P, there ought to be a clause which reads along these lines:

It is hereby mutually agreed by the parties hereto that the risk of damage to the said Property except fair wear and tear thereof shall only pass to the Purchaser upon the Purchaser paying the Balance Purchase Price to the Vendor pursuant to Clause 3 hereof upon which payment vacant possession shall have been delivered to the Purchaser.

With regard to 'pipe or electrical fixtures damaged' as you mentioned, it would be prudent to check it when you inspect the house and probably again before the balance purchase price is paid to the vendor. The second inspection is rarely, if ever, done, but since you said you're nervous, better be safe than sorry.

If, during the second inspection, you find structural defects, the vendor has to rectify/repair it at his own cost.

You can bring in a plumber or electrician to do an inspection on your behalf as well. The cost, of course, would be borne by you. Do these before you pay the earnest deposit. You have every right to do so.

Good luck.

There's no stamp duty involved. As for legal fees, if you appoint your own solicitor then you would have to pay full scaled fees (the same figure you get using the fees calculator). If you want to authorise the purchaser's solicitors to act on your behalf, then you need not pay him the full scaled fees, but there would be other charges.

As to the pros and cons of a vendor appointing one's own solicitor or tumpang the purchaser's solicitor, please go through the earlier posts in this thread as it has been discussed at length earlier.

With regard to RPGT - you can apply for a one-time total exemption or you can go ahead and pay the RPGT, which is 5% of your nett gain. Remember that you would have to pay 2% of the purchase price first to LHDN, and once they've calculated the nett gain (after going through all the receipts you submit together), they will reimburse you the excess.

That's about it.

Oh and do check with your financier if there's any penalty involved if you're settling the loan earlier. Find out how much.

That's about it.

The norm is for it to be mentioned in the agreement.

If you're purchasing from a developer, the standard format Schedule G agreement would apply. If you look at the preamble:

Preamble

WHEREAS the *Proprietor/Vendor is the registered and beneficial owner of all
that *freehold land/leasehold land of ……………… years expiring on …………………
held under .…………………………………………………….. (description of title) and
No. of Title …..…………………………. *Lot No./L.O. No. …………………. Section
…………………….. in the *Town/Village/Mukim ………………………… District of
……………………………………… State of ………………………….. in an area
measuring approximately ……………………… hectares ………………… square
metres (hereinafter referred to as “the said Land” )* and has granted the Vendor the
absolute right to develop the said Land as a housing development and to sell the said
Land;

* emphasis added

So it has to be mentioned, although a title search which has to be conducted would eventually specify the status of the land.

Dear all,

I've received a few PMs asking for legal advice via PM. I've politely requested those who did so to post the said PM at this thread.

I've also amended the first page of this thread as follows:

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.

Kindly be guided accordingly.

Go easy on the kind words, gentlemen, or else people will think that you guys are my dupes (re: duplicate accounts)



Hansel, how's the dispute regarding the purchasers vs developer? Hope they've initiated proceedings already. At least a letter of demand. Don't be accused of being guilty of laches/acquiscence later on if you delay. Must act fast to assert one's legal rights. Do keep us updated, if possible

Xforged:


Welcome back,bro.

According to SRO, all is in order with regard to legal fees.

The only thing which is contrary to the SRO is the discount which you had mentioned. That is a personal arrangement between the purchaser and the lawyer involved and I would advise forummers not mention such things, not in this forum anyway. I simply do not advise on discounts. I don't think it's right for me to comment on it.

Disbursements - Seems a bit steep when considering the fact that it is the same solicitor who is doing the S&P as well.

But there's a reason for it.

Haha. You read my mind as to the reason why the disbursements are steep?

You will notice that in most of the queries in this topic or even in the open forum, the disbursements are always 'hiked up' when the client requests for a you-know-what from the solicitor in relation to the legal fees. So you put two and two together and you get the picture la ya. No need to elaborate. It's like going to the casino - the house always wins

End of discussion with regard to that.

Now, with regard to the other stuff:

1. Facility Agreement, RM 850.00 - Im sure this is justified but for RM850??

Yes, it is ad valorem duty - 0.5% of the loan sum. Fixed by law.

2. Land search RM 30.00 - The s&p legal fees (which is borne by the developer) would have covered land search. Why the double charge?

Depends. Some banks require a new search to be done once the MOT and Charge has been presented for registration. Some don't and can rely on the earlier search which was conducted.
If no second search is conducted, then the client can ask for a refund for disbursements not incurred.

3. Power of Attorney RM 65.00 - Same as land search. Double charge.
Registration fees are also fixed. If the client is unhappy, then he ought to ask for a copy of the official receipt at the end of the day to see if it tallies up.

4. Purchase of Documents RM 200.00 - Am sure tons of docs are prepared/vetted by solicitors. but what will be procured for RM200?

It is to 'purchase' it from the Bank. Weird, but all Banks 'sell' the Facilities Agreement to the purchaser although same is always downloaded from the bank's website and paper, stationery,etc is all borne by the solicitor (who will claim it from the client).
The Bank actually incur nothing in terms of the facilities agreement, but they still charge for it.

But when you send the docs to them for execution, you would have to pay a sum which ranges from RM100 - 200, depending on the bank. Ridiculous, I know, but that's the way things are.

Just make sure that the client is not being overcharged for it. Maybe it is RM100 but the firm may always quote the max figure - i.e RM200 for all transactions. If there is excess, it must be refunded.).


5. Transport to Land Office, Stamping Office, High Court and etc. RM 150.00 - A bit steep I think, considering that every related offices is within the same state (except probably High Court).

Client would've been charged RM150 for transport in the quote for S&P as well, so it's a double whammy. No comments here, as I had stated above, there is a reason for it.

Cheers,mate!

Yes, it is. The 2% booking deposit followed by 8% balance deposit and further 90% balance purchase price is just a customary and standard practice in conveyancing.

Every letter of offer to purchase is an individual contract which is personal between the vendor and the purchaser - there is no fixed rule or law to it. It depends on the free will and mutual agreement of the parties concerned.

There have been cases where the vendor immediately demands for 10% deposit upfront as well and gave the purchaser xxxx days to finalise and sign the S&P! [speaking from personal experience ]

But you must be careful when you sign the letter of offer to purchase. In the circumstances that parties do not proceed to sign the S&P within xxx number of days due to default of purchaser, the vendor will be entitled to forfeit the said deposit.

Perhaps you can insist the the deposit to be forfeited in such scenarios would be 2% instead of 3.6%.

I would advise you to insist for a clause whereby if the parties do not proceed to sign the S&P within xxx number of days due to default of vendor, the vendor must return the whole of the said deposit together with a sum equivalent to the said deposit as agreed liquidated damages to the purchaser.

This is to protect your interest in the event the vendor decides to back off. Don't let him off the hook by merely refunding the deposit to you.

If the vendor is being difficult, then you would have to consider whether to still proceed with the transaction and put in the deposit. If the vendor is difficult at this early stage, most likely he will be difficult throughout the duration of the S&P which parties would thereafter enter into.

The ball is in your court now. Weigh all your options before deciding what is best, keeping in mind all future possibilities and eventualities.

Cheers

Was there a sub-tenancy agreement between the sub and the main tenant? If yes, then notice to the last stated address therein by ordinary post or by hand would be sufficient service.

If there was no agreement, then it becomes complicated. There is no remedy in writing to protect the main tenant in such circumstances, as the main tenant still has they duty to pay the lump sum rental to the landlord, irrespective whether the sub has paid the main tenant in time or not.

If the sub received the notice and refuses to pay, the remedy would be to get the lawyer to initiate legal proceedings to obtain an eviction order against the sub. If the sub still refuses to vacate after the Court order has been issued and served on him, the lawyer would then initiate enforcement proceedings whereby the Court bailiff (together with a police officer and locksmith) would attend at the premises and break the room lock and remove the items belonging to the sub from the room.

What happens to the items? You can't even throw it away. You have to keep it someplace safe and there have been situations where the landlord had to rent a store to keep the tenant's movable property ( in this case - gym equipment) after the Court order was issued and enforced.

The main tenant would bear all the costs for the above and claim it from the sub after all is done - probably when the sub turns up to claim back his stuff (and beg for forgiveness too, perhaps? )

Now you would ask me, 'Is there a less complicated and cost-effective [read:cheaper' alternative?'

Yes, you may try to call and persuade the sub. If he refuses to answer or meet up, go to his college or work place and confront him. If you have no idea where he studies or works, try contacting the family members, especially parents of the sub. Perhaps lodge a police report detailing what has transpired and show it to them. Perhaps they can cough up the sum on his behalf and settle things.

The above are long shots which may or may not work - but those options are only because the main tenant did not have the hindsight and diligence to prepare a sub-tenancy agreement with the sub. Probably insert a clause to allow the main tenant to break the lock if rent is not paid by xxxxxx for xxxx months and after notice has been given via email (easier mah) to the sub. A background check with full particulars of relatives and next-of-kin would be useful as well. Another idea is to get a guarantor to take responsibilty to pay the rent on the sub's behalf (perhaps his parents?)

Now you would ask me, 'What if after I do all the above to the best of my efforts I still can't find the tenant who has just simply vanished from the face of the earth without any trace. I've spent so much on legal fees and storage rental costs - how long must I bear the costs to keep his stuff?'

Well, if you have exhausted all your legal remedies and you are very very sure that this person has totally given up, would never come back for his things and sue you for trespass to goods, then you do what you need to do la with his stuff.

Pandai-pandai aje la

But do that as a last resort! A lot of people take the law into their own hands and then pay the price when faced with a hard-knuckled tenant who vows revenge (don't rule it out, as it has happened before!)

Moral of the (long-winded) story - always be prudent and prepare an agreement. Don't be pennywise, poundfoolish.

Hope the above helps. Cheers

We should call them 'purchasers-cum-sub-contractors/developers'

Yes, do keep us updated. Hopefully more movements than mere bowel movements

Aiyoh, where can give post-dated cheque? I doubt if the vendor will accept. The booking deposit also will normally be issued in favour of the agent's real estate agency, or the agent himself. As such, it has to be cleared. The agent himself will object to it!

Highly unlikely, mate! Smart thinking though

20,000 views for this thread already!

Once the letter of offer to purchase has been executed and the 2% paid, there is a binding contract to sell and buy. Both parties can enforce it against the other in event of a refusal to proceed.

Don't accept the 2% as it may constitute acceptance of rescission (in layman't term - cancellation/revocation) of the contract.

Is there a clause in the letter that the vendor has to pay an additional penalty as compensation? Most of the time, it would be an equivalent sum of the booking deposit - so the vendor has to pay you 2% + further 2% - if you accept that as compensation, then you can't proceed any further and the matter comes to an end.

Otherwise, advise the lawyer to proceed with a civil suit to seek specific performance of the contract - make sure that your friend really really wants this unit and you must be prepared for all eventualities as the vendor may not act in good faith and there have been cases (similar scenario to auction purchases) where the house is almost, if not completely thrashed. defaced, stripped of fixtures,etc by the vendor who then disappears without a trace.

Advise her to sit down with her lawyer and get the lawyer to explain the pros and cons and eventualities - before deciding to proceed. Or else, just accept the 2% refund, forget it and proceed to look for another unit. Who knows, maybe that one was not meant to be huh?

Cheers.

Good. Read it thoroughly before you sign.

There's a legal saying in Latin - caveat emptor - let the buyer beware.

Cheers.