Differential sum is separate from your loan sum. Your financier must be certain that you have the financial capacity to complete the transaction before they commit to redeem the vendor's outstanding loan. That is standard procedure. The diff sum will not be released to the vendor yet. It will be kept by your solicitor in their client's account as stakeholder.

Your SPA should state a duration of time for the vendor to obtain the redemption statement, failing which the completion date would be extended automatically. So there's essentially nothing to be afraid of.

If you deliberately delay forwarding the diff sum to your solicitor, it will delay the transaction indefinitely and things will not move.

You would need to put in a deposit. You would normally only be able to view the property from it's exterior. Attend on the auction date and if you're successful, the rest of the process is about the same as a subsale. You would have to appoint a lawyer, apply for a loan, etc.

With regard to outstanding payments/bills, yes, you would have to pay for everything which is outstanding. It's part of the risk which you take when you purchase such properties. I would advise you to do as much homework to find out as much as possible about the property before you decide to bid for it. Don't get stuck later on once you've committed yourself to it. If there's an existing occupier, all costs of evicting the occupier would be borne by you. All damage to the property would have to be repaired/remedied at your own cost.

Good luck

hi, thank you very much for the info, the SA told me that the loan legal fee is not covered, so may i know roughly how much for the legal fee for loan? If the developer take few year time to give us the individual title would that be a problem? Because according to the SA they told me that take longer to take the individual title is good because can enjoy more year for the leasehold land - mean that after subdivision the lease will start from 99year again. Is this true or just some sales talk?

Hi,

Is it safe to use bank panel's lawyer? Are they effective?

Also, according to my agent, it will be much faster to process the release title, MOT etc if the vendor and buyer are on the same bank. Is it true?

Thanks!

This link is quite helpful to calculate:
http://www.fiscal-wise.com.my/FinancialToo...Calculator.aspx

With regard to your query if the lease will "start from 99year again" after subdivision, let me check on that and get back to you. Interesting question.

Safe? In what sense? Effective? In what sense? All these are subjective questions where no one can give you a definite, general answer. The speed, smoothness and efficiency of the whole transaction depends on the parties involved, the SPA solicitor, the land office, LHDN, the banks itself, the developer (if applicable), etc. If one part gets stuck, the whole engine can't move and gets stuck as well. It has nothing to do with the fact that your loan documentation is handled by a firm who sits on the bank's panel.

Some people may tell you things like, 'Bank panel lawyers are better because they are big, experienced, have a lot of staff, they know what the banks want, etc etc'.

All that is hogwash and once again, is a general statement which is not applicable across the board. Who says bank panel firms are big? And who says that big is good? If you look at it from another perspective, big means that each clerk is handling a lot of files - which means that she would find it difficult to pay more attention to your file to ensure that things move A.S.A.P as she has to divide her attention between all her files. See my point,mate?

As I've always mentioned in this thread - go for recommendations when you appoint a law firm, be it for your SPA or your loan. If you're convinced that your SPA lawyer is capable enough to do your loan doc, and the bank doesn't mind to allow the firm to do it on an ad hoc basis, by all means, use the same law firm!

Ask your friends and family to recommend.

Still not safe to generalise, as slip-ups and mistake do happen internally, but most of the time, yes, it would be faster

Hi Dario,

I managed to get this note of charges from the lawyer by email. However, I'm still waiting confirmation of final charges from them whether it's RM 1504 or RM 1922.

Beside that, what is the estimate charges if I appoint my own lawyer assuming the selling price as stated below?

Your advise very much appreciated.

Selling Price : RM560,000

LEGAL FEES Disbursement Charges

Discharge of Charge (2 sets) 600.00
Filing Form CKHT 1 (2 Sets) 600.00
----------- 1,200.00

DISBURSEMENTS
Stamping Discharge of Charge (2 sets) 20.00
Filing Discharge of Charge (2 Sets) 180.00
Affirmation Fees on SD & Stamping 40.00
Change of Title 20.00
Bankruptcy Search 40.00
Transportation Fees 200.00
Miscellaneous Charges 150.00
6% Government Tax 72.00
---------
722.00
-------- Total : 1,922.00

Thanks dario! Cheers

Hi, thank you very much for the info, and hope can see your result regarding the subdivision part.

Sansi:


Why discharge of charge 2 sets? There's 2 individual titles is it? Do check.

Bankruptcy search RM40 is not needed as it is the purchaser who has the duty to check on the status of the vendor (you). What this lawyer is trying to do is to push the cost of the bankruptcy search to you, which is unjustified. Don't be surprised if he also charges his clients the same but uses the same search.

Transportation fees of RM200 is way too expensive. Misc charges fixed by the law is only RM50, so this RM150 once again is not justified.

What is RM20 for change of title????? I've no idea what that means.

Just double check all of the above with them as the difference is quite a bit.

With regard to legal fees if you appoint your own solicitor, the fees can be calculated here (insert the selling price):
http://www.fiscal-wise.com.my/FinancialToo...Calculator.aspx




This post has been edited by dariofoo: Mar 28 2011, 04:39 PM

Will revert with an answer but do give me time to climb the highest mountain and seek guidance from the ultimate sifu of sifus of sifus

hahaha... really thanks! This is my 1st house so hope can know more to minimise the possible problem that may happened...

Yes, 2 individual titles. (me & spouse)


What is the reasonable fees?

From your point of view, what is the reasonable overall fees charge by lawyer as I'm a vendor
with the selling price 560,000 and 2 individual titles.

Of course I will double check with them
Thanks mate!

This post has been edited by sansi: Mar 28 2011, 06:54 PM

Change of title is to change the old version, torn and crumple title to a new title. The land office charges RM20.

1) Postage/Courier/Telephone/other expenses.

2) Printing of document.

1 and 2 your lawyer forgot to bill into your bill. Remember to ask him to add in 1 and 2 and remove the unwanted extra billing.

This post has been edited by Seremban_2: Mar 28 2011, 09:22 PM

First of all dario, thanks very much for the thread. It's been very useful and answered many of my questions already.

I bought a property from the developer and am now selling it off before the property has been completed. If there are any delays on the developer side and the developer pays penalties, will that come to me as the official current owner or to the new buyer?


This post has been edited by tishaban: Mar 29 2011, 08:38 AM

Two individual registered proprietors and two individual titles are different altogether. I was asking if your property sits on two different titles, hence the need for two discharge of charges. Do check.

What is reasonable differs from person to person. Hard to tell. If you want to appoint your own lawyer you'd better start getting a few recommendations and compare quotations. At the end of the day, decide yourself what is reasonable to you.

Bro,

It's not his lawyer. It's the purchaser's solicitor. He's unrepresented.

And why advise him to ask the lawyer to add in things when the lawyer does not see fit to include those in the bill?

At the end of the day lawyer goes like this -
Client goes like this -
Moderator goes like this -
dariofoo goes like this -
You'll go like this -



This post has been edited by dariofoo: Mar 29 2011, 11:50 AM

Boss, then I think the term the lawyer ought to mention is replacement title, not change of title. Plus I highly doubt so as the lawyer would not know that the current issue document of title is crumpled or torn as same is still being held by the vendor's financier (based on the fact that the discharge of charge has not been done yet).

So I think it's something else. No worries. Sansi shall check it out.

Good of you to read through. Knowledge is power,brother. When you are knowledgeable, even lawyers go like this ->


What do you mean by "delays on the developer side and the developer pays penalties" ,bro? If delay on the part of the developer to provide a letter of confirmation then it would not normally affect things much as most agreements are drafted whereby the completion date would start to run from the date of receipt of the letter of confirmation. So the delay in that part, if any, would not affect you directly (in the sense that you need not cough up any money for penalties, etc) but the effect is that the completion date would run longer, thus you would have to wait longer to receive your balance purchase price.

Other than that there's basically no other concerns,really. Appoint a good law firm to run the show for you, and relax

The "good law firm" part is what concerns me now. I do know a bad law firm having dealt with them many years ago but the rest that I've dealt with while buying and refinancing have been almost invisible that I don't know if they're good or bad if something goes wrong...

But thanks again, reading 20 pages kept me awake this morning