Lawyers Corner, A one-stop centre on lawyers and queries
|
|
 Mar 15 2011, 04:54 PM
Return to original view | Post
#1
|
 
Junior Member
39 posts Joined: Jun 2009 
|
Hi all good day!
This is my first time buying a 2 storey landed house leasehold. The agent say that the deposit/booking fee is 3.6% instead of 2%. I've read through the post of this thread n it seems it's a standard 2%. The agent told me that it's the vendor special request. Is this legitimate ? |
|
|
|
|
|
Mar 15 2011, 07:49 PM
Return to original view | Post
#2
|
|
Junior Member
39 posts Joined: Jun 2009
|
QUOTE(dariofoo @ Mar 15 2011, 07:35 PM) 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. Thanks! 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   Can I prepare a cheque which dated after the 14 working days? This is to safeguard my interest as well |
|
|
Mar 15 2011, 09:35 PM
Return to original view | Post
#3
|
|
Junior Member
39 posts Joined: Jun 2009
|
QUOTE(dariofoo @ Mar 15 2011, 08:00 PM) 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! Thanks dariofoo for the clarification.Highly unlikely, mate! Smart thinking though  Just called up the agent and confirm the matter, and she mentioned that the clause "vendor compensate the buyer in case vendor withdrawal" is a standard and will be in the letter of offer. Same goes to S&P clause, which the vendor will compensate back the 10% in case he withdraw. |
|
|
Mar 28 2011, 10:57 AM
Return to original view | Post
#4
|
|
Junior Member
39 posts Joined: Jun 2009
|
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! |
|
|
Mar 28 2011, 03:15 PM
Return to original view | Post
#5
|
|
Junior Member
39 posts Joined: Jun 2009
|
QUOTE(dariofoo @ Mar 28 2011, 11:58 AM) 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. Thanks dario! Cheers 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 |
|
|
Mar 29 2011, 04:37 PM
Return to original view | Post
#6
|
|
Junior Member
39 posts Joined: Jun 2009
|
Hi All,
Please advise whether the below S&P and Loan Agreement charges is appropriate. Thanks! Below is the S&P charges for my RM520k property leasehold individual title. DESCRIPTION Fees TO OUR PROFESSIONAL CHARGES to preparing the Sale and Purchase Agreement and attending to its execution, attestation,stamping, to advising you generally and specifically and to all work completed thereto. 4,090.00 CKHT2A 200.00 Total Professional Charges 4,290.00 6% Service Tax 257.40 Total Professional Charges + 5% Service Tax 4,547.40 Stamping fees Sale and Purchase Agreement 40.00 Stamp duty Transfer 9,600.00 Registration fees Transfer 500.00 Search Fees Land search/Caveat and Presentation search 60.00 ROC/ROB search - Bankruptcy search / CTOS Search 36.00 Out of pocket Travelling 200.00 Postage & Courier 60.00 Fax & Telephone 60.00 Printing & Photocopying 60.00 Total disbursements 10,616.00 Add professional charges (b/f) 4,547.40 Total professional charges and disbursements 15,163.40 Less disbursements paid into account - Less stamp duty paid into account (if any) - Total due to us 15,163.40 After discount : 13,900 And the Loan Agreement for RM468k loan Description Disbursements Fees TO OUR PROFESSIONAL CHARGES to preparing the Facilities Agreement and attending to execution, attestation,stamping, to advising you generally and specifically and to all work completed thereto 3,726.00 Memorandum of Charge 372.60 Entry of private caveat 200.00 Withdrawal of private caveat 150.00 Consent to charge 300.00 Total professional fees 4,748.60 Add 6% Service Tax 284.92 Total professional charges & service tax 5,033.52 Stamping Letter of offer 10.00 Statutory Declaration 20.00 Stamp duty Facilities Agreement (Original & copies) 2,370.00 Memorandum of Charge 40.00 Registration fees Entry of private caveat 340.00 Withdrawal of private caveat 80.00 Registration fee for consent to charge 30.00 Memorandum of charge 120.00 Search Fees Bankrutpcy search 36.00 Land search 60.00 Out of pocket Travelling charges 200.00 Postage & Courier 60.00 Printing & copying 60.00 Fax & phone 60.00 Purchase of loan documents 100.00 Affirmation of declaration 20.00 Total disbursements 3,606.00 Total profesional charges and disbursements 8,639.52 Less disbursements paid into account - Less stamp duty paid into account (if any) - Total due to us 8,639.52 After discount : 7,200.00 |
|
|
Mar 30 2011, 09:57 AM
Return to original view | Post
#7
|
|
Junior Member
39 posts Joined: Jun 2009
|
QUOTE(dariofoo @ Mar 29 2011, 06:15 PM) mikeyyh: Ok thanks dario!» Click to show Spoiler - click again to hide... « Ok lor. Disbursements are obviously marked up to contra the discount given to you. But you can't complain, because the house always wins So, it's ok lor. |
|
Topic ClosedOptions
|
| Change to: |  0.0664sec
 0.39
 7 queries
 GZIP Disabled
Time is now: 1st December 2025 - 01:03 AM |
Quote