Hi, I'm new here. I bought a second hand house with my SPA signed . As usual, the SPA requires the balance sum be paid in full to the vendor within 3 months (90 days) (Completion Date) with an extension of one month (Extended Completion Date) at an interest of 8% p.a. at daily rests.

I used the SPA lawyer recommended by the agent, the vendor uses his own lawyer and for the bank, I use another loan lawyer. I was told by the SPA lawyer initially that this SPA should be fast and should have been settled within 60 days since it's a freehold and the past loan already been settled in full. I was a happy guy.

Initially, the vendor lawyer delayed in providing certain documents like the land title (I think) claiming the vendor is overseas. I was given assurance by various parties that I still had a lot of time since it's supposedly a 2 month-process.

Down the road, I was asked to go to the SPA lawyer office to hand in the cheque for the balance of the deposit which I duly did on the same day my SPA lawyer asked me to.

Fast forward to around 60 days after the SPA document signed, I came to know from the bank loan officer that there was some miscommunication between the SPA lawyer and loan lawyer, which was settled within 2-4 days after my intervention. Later within one week from the Completion Date, I was informed by the loan lawyer that the land office had made a mistake with my I/C No. in the Lodgement of Private Caveat form. Also, the private caveat No. was different (?) and doesn't tally with the land office.

I was under tremendous pressure by then . I also couldn't quite understand what the lawyers were talking as I don't know all these things. Countless calls to both lawyers were made, as well as letters sent.

The SPA lawyer blamed the loan lawyer, saying that the loan lawyer could just easily 'settle' this case at the land office. The loan lawyer said they can't do it, and must be done by the SPA lawyer. I don't fully understood and asked both parties to communicate. This process goes beyond the Completion Date, and now I'm in the Extended Completion Date period.

I wrote a letter to complain to the bank, in which they guarantee that they'll release the balance payment in soonest possible time after all this is settled.

Later, I was told that the Caveat No. was rectified and was informed by the SPA lawyer to inform the loan lawyer to present my case. The next day, the loan lawyer said the mistake hasn't been rectified (I don't know how they could do such things). Finally, the loan lawyer told me that the SPA lawyer should write in to land office to rectify the I/C No. mistake. Within 2 days, the mistake is rectified, a day later my case is presented to the land office, and finally the bank kept their word and release the balance within 2-4 days after the loan lawyer has submitted the documents to the bank.

Now I'm the midst of waiting for the keys to my new house, but the SPA lawyer just called that the vendor lawyer wants to charge for the late payment. The SPA lawyer is appealing to the vendor lawyer saying it's the land office fault, and asked me to wait for a while for the keys. The SPA lawyer also wants to know the final sum demanded by the vendor lawyer for the interests.

I'm in a bind. I'm not at fault here, but it looks like I may have to finally pay for the interests?

I feel that I'm a victim here, with nothing that I could do. I need help. What can I do? While I desperately need the keys to my new house to move in since I'm renting now, I also face a situation that I might have to pay more for the interest charged, which I feel it's not my fault.

Please please please advise.



Thanks.
P/S: I might not used the correct terms as I'm not familiar with the law terms.

Thanks a lot dariofoo. Having countless sleepless nights because of this.

Below my comments based on the above answer given:
1. The delay from the vendor side with regards to the 10 working days, yes, I read about it in the SPA (This I could do as I have the documents). The thing is, the SPA still haven't come back to me on this. Each time I call, they'll ask me to give them more time as they're busy, etc. Let's see.
2. It's interesting that you point out the caveat form as this enlightens me. The loan lawyer did point this out to me initially, but when I called up the SPA lawyer, they said the mistake is beyond their control since the mistake is on the land office side. I amde few calls to both party, and later I got to know from the loan lawyer that the SPA lawyer should have checked the particulars in the official receipts (My answer to the loan lawyer was "Does the SPA lawyers have a copy of the caveat form/receipts? Because I don't have."). The loan lawyer pointed out the mistake by the SPA lawyer side, but when I call up the SPA lawyer they kept on insisting it's something beyond their control. (OMG!) I decided not to aggravate the situation at that time and ask them to speed up teh whole process. Now, I think it's quite clear that the SPA lawyer did an error by not double-checking the particulars. WHAT SHOULD I DO NOW?
3. The SPA lawyers are now writing to the vendor lawyer to explain the situation (this I was informed) as well as to waive the penalty (I think). I'm not sure whether the vendor will oblige. But if they insist, do I have to bear the interest? If I want an avenue to complain, what choices do I have?

Thanks a lot dariofoo.

Property price is RM 345k, balance of purchase price is RM 264k, I think.

Questions:
1. About the complaint, looking at my scenario above, do you think it's my fault for the exntension? If it isn't, do I have to bear the interest? But looking at it, I would look like it's my side's fault, I mean either it's me or my SPA lawyers.
2. If it's the SPA lawyers fault, can I ask them to bear the interest?
3. I don't want to really go to the Advocates & Solicitors Disciplinary Board @ Lembaga Tatatertib Peguam-Peguam to lodge a complain. but if I feel that I'm not fairly treated, I would definitely go if I'm asked to bear the interest. Is there any charges imposed if I lodge a complaint to the board?
4. If I lodge a complain, wbut while not paying the interest, I still won't get the keys to my house because there's a provision in the SPA saying so as well as I got to know that the vendor lawyer is saying the same thing. How long do I have to wait? Any suggestions?

Thanks a lot, dariofoo.

Hi,

Any answer to my question no.2, no.2 and no.3?

Thanks

Sorry. Haha. Not to interrupt but...air mata kucing? I kind saw your comments in the Nadayu 92 discussion that you stay in Kajang and you work in Bangsar. So...

Heh-heh. Actually accidentally saw it while I was browsing around (You see, mind cannot focused because of all the past sleepless nights)

But then again, my vision is kind of blurry right now, maybe it was a different dariofoo

Contacted the loan lawyer, she said their SPA also stating that key only given when all payments released.

Also received from the loan lawyer and they verbally told me that it's the SPA lawyers delay that has caused all this. I've contacted the SPA lawyer and he told me now I'm at the discretion of the vendor lawyer in terms of the interest charged...

The SPA lawyer asked me to wait for the vendor lawyer's reply, probably in a few days time. He also mentioned that i can go ahead and file a complaint as I have my rights...

Now, I'm at a loss again. Don't think tonight can sleep well again.

The chronological of events (according to loan lawyer):
25/10/10 loan document executed by borrower
1/11/10 received SPA from SPA lawyer
25/11/10 forwarded bank's letter of undertaking to vendor lawyer
8/12/10 received reply from vendor lawyer
10/12/10 received reply from SPA lawyer (MOT not given, and pursued with SPA lawyer)...a delay here between SPA and loan lawyer
13/12/10 received original title from vendor lawyer
21/12/10 informed SPA that original title already received
30/12/10 received MOT from SPA lawyer (as you can see, a delay of ca. 20 days here, it not all already settled)
3/1/11 request vendor lawyer to forward Quit Rent and Assessment receipts again (since it's a already new year)..another delay here but by vendor
5/1/11 received Purchasers' Withdrawal of Private Caveat, registration fees, etc from SPA lawyer
10/1/11 reminded vendor lawyer to forward Quit rent, etc
14/1/11 reminded vendor lawyer to forward Quit rent, etc
17/1/11 received Quit Rent from vendor lawyer (ca. 14 days delay here)
19/1/11 informed SPA lawyer of error in private caveat ..another delay here by SPA lawyer
24/1/11 reminded SPA lawyer to amend
25/1/11 SPA confirmed amendment done
26/1/11 Found amendment not done. Informed SPA lawyer
27/1/11 Remind SPA lawyer to amend
28/1/11 Remind SPA lawyer to amend. Request SPA lawyer to provide copy of land search to confirm amendment done (here comes CNY break..)
7/2/11 SPA lawyer confirmed amendment done and will provide document the next day (ca. 18 days wasted)
8/2/11 Received copy of land search. presented MOT at land office
9/2/11 Advised bank to release loan
11/2/11 Bank released full loan sum
14/2/11 Sent full loan sum to vendor lawyer


So, dariofoo, any comments?

Hi,

Looking through the details again, do you think I have a case here?:-

"A letter was sent to vendor lawyer on 02/11/2010 requesting for the documents, undertakings, etc. If the information is correct, the letter from vendor lawyer is only received by the loan lawyer on 08/12/2010. (All in should be 36 days, the SPA didn't state whether it's working days, so I assume it's not). The original Title is only received by loan lawyer on 13/12/2010. This is another 5 days delay.

I was told the full loan sum to vendor lawyer released on 14/02/2011. From original completion date of 25 Jan 2011, that's 20 days delay. In the SPA, period exceeding 14 days will be excluded from the completion date. Therefore 36-14 = 22 days. (This is not counting the extra 5 days for the Title).

Does this means I didn't exceed the delay and thus do not have to pay for any late charges interest?

And if there wasn't any delay, does that mean it ended up that the vendor side is delaying as they're supposed to hand over vacant possession within 5 days from release of full sum?"

Hope to hear reply from you soon.

Thanks.

Hi dariofoo. Thanks for the reply.

You don't know what I'm going through right now. I ask for chronological of events from both SPA and loan lawyer. Only loan lawyer provided. SPA is ....

Without waiting for SPA's chronological of events, I go through the documents provided by loan lawyer in detail and checked my SPA document. (Yes, it's stated that 14 days is allowable, anything more is excluded from completion date). So, I guess, there could be a delay and I may end up no need to pay the interest.

After giving these detail to SPA lawyer, they ask me to provide them the loan lawyer chronological of events (Btw, I just got the letter from loan lawyer yesterday afternoon abt 4pm only la).

So, let's see.

P/S: Busy travelling today, might be only by tonight I can log in again.