Nope, I just sign SPA only, lawyer didn't give me other document at all.

That's unusual. Property with individual title right?

hie..do u provide advise on partnership agreements?

What is your question?

a rental slip which wrote rm2k cash payment for house purchase.

Well, every month after she pay us rental, we provide a slip.

so the few months she din pay, she doesnt has the slip.

Then just follow my advice and get her to sign a letter stating that the final payment of 2k would be deemed to be 1k being outstanding rent and 1k being part-payment of the purchase price.

That ought to regularise things. For the moment, at least.

If buyer refused to sign? any idea?

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Added on February 24, 2011, 9:08 pmCan anyone draft me a letter of house transfer ownership or any link i can download a sample letter?


This post has been edited by MsPopcorn: Feb 24 2011, 09:08 PM

Then it's time to see a lawyer. Same thing for 'house transfer ownership'. Let a lawyer do it properly for you. It's not as easy as downloading sample letters and filling it up yourself.

Good luck.

I still waiting lawyer to revert my request on getting the copy of letter of confirmation by the developer, meanwhile I check back my mail box, i had recieve a email from law firm, Date 25.11.2010

the mail content (with attachment of a letter the law firm send to developer for requesting the master chargee infomation):

The developer just provide us(law firm) the particular of the master chargee recently despite we have asked from them quite some time ago.

they have already written in to the Master Chargee for the Disclaimer Letter and we shall proceed to advise the Bank to release the REDEMPTION SUM to the Master Chargee as well as your BANK."

My question :
1. Without letter of comfirmation by the developer, they(lawyer) cant start any action inadvance right? It prove that they(law firm) should receive the confirmation letter quite some time already, am I right?

Thanks

Hi Dario,

I am in the midst of reviewing the purchaser draft of S&P and Deed of assignment.


May i ask what is a deed of assignment?

Thanks.

Yes, they would wait for the developer to revert with the letter of confirmation as the letter would state particulars of the master chargee and the latest position with regard to same. Even if you look at their e-mail they stated "The developer just provide us(law firm) the particular of the master chargee recently".

I would say that information was given by the letter of undertaking.

A deed of assignment (DOA) is an agreement whereby you agree to assign all your rights over the property to the Bank.

DOAs arise when there is no individual title for your property and the whole development is still under a master title.

When the loan with your Bank has been fully settled, the Bank will execute a Deed of Receipt and Reassignment (R&R), whereby the bank reassigns its right over the property back to you.

When you subsequently sell your property, and assuming that the individual title is still not issued yet, you will assign your rights to the new purchaser by way of a new DOA.

It's pretty much proof of ownership of property.

Ic.. So I guess I will need to sign it for the sales to proceed.

But why will we need to assign the rights to purchaser when the bank owns the property and also we have not execute the S&P yet?

You need to sign it only if you're taking a loan. If you're a cash purchaser then you only sign the SPA.

I think my explanation may have confused you.

You are the purchaser and you assign your rights over the property by way of a DOA. You are essentially the owner of the property and you merely assign it to the bank as secutiry for a loan

hi dario

can i get the lawyer to place a caveat on a prop whereby the transaction is unable to proceed with the signing of S&P as one of the directors
refused to execute a resolution to sell ? the letter of offer has been signed and the 14 days for the signing of s&P has lapsed .

My second question would be - with a caveat , can the owner still rent it out though he wont be able to sell it until the caveat is removed..?

Thanks
Jess

Jess,

To lodge a caveat you need to have a caveatable interest and that only accrues upon signing the SPA and paying the 10% deposit.

Until then you can't caveat the property.

If the 14 days has lapsed your remedy is to request for a refund of the deposit paid, or alternatively, grant the vendor an extension of time.

With regard to your second question - the answer is yes, the owner can still rent it out.

A caveat only stops him from transferring ownership of the property to another party,

This post has been edited by dariofoo: Feb 27 2011, 01:52 PM

Thanks Dario..strange as my lawyer claimed that a caveat can be lodged and she said she has done it though i have not seen any proof it has been done.
One of my friends said it could not be done as well...

I had given the vendor an extension of time but that too has lapsed..the agent has returned my 2% deposit. in the meantime, i have incurred legal fees for having the S&P drafted so i guess there is no recourse for me except to sue the vendor for compensation? he has so far refused to pay..

Jessy,

In the circumstances where the sale was aborted due to the refusal of the vendor to proceed with the sale, and if you intend to sue the vendor upon the letter of offer to compel him to sell it, then yes, you can lodge a caveat.

However, you cannot accept the refund of the 2% as you would be deemed to have acquiesced (agreed) to the cancellation of the letter of offer and accept the refund of the deposit, thus restoring parties to their original position.

If you had accepted the money, then I'm afraid you've severely weakened your chances to enforce the letter of offer (i'm assuming there's one as there's an agent involved, and agents would have a standard form)

If you want to proceed to sue for specific performance, then yes, go ahead and instruct your lawyer to lodge a caveat.

On another note, your lawyer shouldn't charge you full scaled fees if the sale got aborted. I know certain lawyers only charge a token sum ranging from RM200 - RM500 for merely preparing a draft SPA, and perhaps disbursements incurred, i.e land search. That's all.

Thanks for your reply Dario..

oh boy..! my lawyer told me i should go ahead and get the deposit back and she subsequently wrote to the agent requesting for the refund. She was also aware that i wanted to pursue the vendor for compensation (sum equivalent to the 2% deposit i paid amounting to about 25k) rather than specific performance

So you mean that i can only sue the vendor for specific performance but not compensation ? the letter of offer via the agent clearly indicate that i can pursue for either one or the other,and i chose compensation..the purpose of lodging the caveat was to compel the vendor to pay up ..As the vendor did not appoint his own lawyer but used my lawyer, he was advised of the consequences should he not go ahead with the S&P ...

Thanks for the info on the fee chargeable..i will ensure i dont land up with a big fat bill..

Jessy,

So now you're saying that your letter of offer contains a term which states that if the transaction is aborted, the vendor has to refund to you the 2% paid plus another 2% being compensation? Why didn't you state that earlier?

Well, in that case then go ahead. Take the refund and sue for the 2%. My earlier advice would not be applicable in your case as you have stated that there is a separate clause which states for the vendor to pay you 2% as compensation.

As far as I know, if the vendor fails to proceed, the 2% deposit will be refunded to the purchaser and parties will have no further claim against the other. I think that is a common clause. Guess i'm wrong.

If the purchaser fails to proceed, the 2% will be forfeited by the vendor and parties will have no further claim against the other. Is that what is reflected in your letter of offer?

With regard to the caveat, if you're suing for RM25k, you still CAN'T lodge a caveat over the property. You still do not have a caveatable interest over the property. It's different if you want to enforce the letter of offer and go for specific performance. Then yes, your intention to caveat the property is because if they transfer it to a third party, it will defeat your claim and render it academic and redundant.

Your lawyer ought to know better of the dangers and pitfalls of caveating a property without due reason. You can be sued by the proprietor for damages. Perhaps you should ask her more about this and be certain about it before deciding to caveat or otherwise.

If it is merely to put pressure on them to pay you 25k, it's a gamble which I would seriously advise against.

This post has been edited by dariofoo: Feb 28 2011, 11:46 AM