Thank you so much, Dario. I have given them notice by writing. The SPA should be terminated already. Anyway, just for knowledge and curiosity sake, assuming I did not give them notice in writing to terminate and they have proceeded on the assumption of implied consent, shouldn't the process hit a brick wall sooner or later? I assume, at some stage, any one of the lawyers or the banks would need to see a written agreement that the SPA timeline has been extended, right? Otherwise, how can the whole legal process be completed with an "expired" SPA?

Make sure you get the notice sent by hand and acknowledged in writing.

Well, before the bank releases drawdown of the loan, they would request for a letter from the lawyer confirming that the vnedor has consented an extension of time to complete the SPA. There is no requirement that the letter must be from the vendor (assuming that the vendor is not represented). So, the lawyer may still proceed. However, that is not only unethical but is also serious misrepresentation (even fraud, I might add) and it can result in serious consequences against the lawyer concerned in the form of disciplinary proceedings which could even be initiated by the bank.

Where is it stated in the SPA?
And also I am not using my own lawyer, I am using purchaser's lawyer.

hi Dario,

juz received a quotation upon request

noticed that there are few charges the law firm charged me :

Disbursement
Registration fee for :
entry / withdrawal of caveat RM340+RM80
Charge : RM 120
Application and registration fees for consent to charge RM100
Application for consent to charge : RM50

Legal Fees :
Charges annexure : RM200
Entry and withdrawal of Caveat ; RM350
Consent to charge :RM300

It is a freehold condo , with master title , still under construction.

The solicitor insisted that i still need to pay for it even after 2 yrs when my condo unit complete... is it true ? i referred to all quotation samples provided by forumers and non of them get charged for this ....

is it compulsory ? or it is depend on the bank ?

This post has been edited by steventan85: Aug 6 2012, 03:30 PM

These are the types of lawyers that put the legal profession to shame.

How can they charge you for Charge Annexure when there is a Master Title? The bank cannot create a charge over the master title.

And when there is Master Title, the banks would not lodge a caveat over it. They would consent to a waiver.

This lawyer is taking you for a ride.

Furthermore, for freehold, why the need for consent to charge? Does the land come with any restrictions in interest?

so meaning to say , the charges are not relevant to me even after the condo complete ?

as for restriction in interest , i referred to the brochure by developer , encumbrances : NIL , so it is a NO right ?

For charge annexure it is only due when strata title is out. By right they can't bill you now for it. Furthermore, there is no requirement for you to retain them to do the strata title later anyway.

Encumbrances refers to a charge over the master title. Restrictions refer to whether consent is needed or otherwise.

hi dario..just wonder. all the charges sample are for buyer. how bout seller? do refer the same table??
tq

Ic... so for the private caveat , do i need to do it when i get the strata title later ? or its not relevant to me anymore ?

if i appoint other solicitor to do strata title , will i incur additional cost ? i mean if i use the same solicitor , will i save the hassle and cost ?

i dont see any restriction in interest mentioned in the brochure .. i only saw "restriction in interest" in leasehold property brochure .



This post has been edited by steventan85: Aug 7 2012, 10:37 AM

Hi Dario, just came across the clause that make me couldn't sleep well at night :'(

I bought an undercon leasehold condo from a developer. The S.A told me that I just need to fork out cash for down payment & loan documentation stamp duty, the rest will be borne by the developer.

When I look at the clause in the details of purchase (DOP), it is written that:
1. free legal fees on S&P
2. free legal fees on Loan documentation excluding stamp duty

Is there any other extra money i have to fork out besides the 10% down payment & 0.5% loan agreement stamp duty? Appreciate if you can solve my queries..

For seller, the professional fees would be the same if you appoint your own lawyer.

If you authorise the purchaser's lawyer to do the redemption of your loan for you, then the legal fees are only:

1) Discharge of charge/deed of RnR: RM300 (add RM100 if RnR involves revocation of PA)
2) Filing of CKHT forms : RM300/pax.

For disbursements, it would be much lesser, and depends on whether the property is still encumbered to your financier or not.

I'm sure there would be a sample somewhere in v1.

This post has been edited by dariofoo: Aug 7 2012, 02:47 PM

***deleted***

This post has been edited by steventan85: Aug 7 2012, 02:51 PM

You would need to pay for stamp duty upon the memorandum of transfer when the property is completed and strata title is issued.

but the stamp duty for loan agreement still have to be paid upon executing it right? I'm confuse on "loan documentation" clause. How about disbursement charges? are those be considered as part of the loan documentation charges also?

Hi Dario,

Would appreciate if you can advise on the next course of action for my sis-in-law who is a first time home buyer. Here's the chronology of events :

1. Paid earnest deposit 3% directly to owner in the presence of agent (owner insisted deposit to be paid to him directly)

2. Agent issued Offer to Purchase form with additional clause "Subject to loan approval and deposit to be refunded if loan rejected". Both buyer and seller signed on 9/6/2012

3. There were some hiccups in her application and in the end the banker rejected her application verbally on 15/7/12.

4. Informed the owner of loan rejection but owner refused to refund the earnest deposit. Tried to ask the agent to talk to owner for refund.

5. Owner still refused, quoting that the grace period of 15 working days has lapsed as stated in the Offer Letter, hence he has the right to forfeit the earnerst deposit.

Would like to verify if the owner has the legal right to forfeit the earnest deposit? The bank issued an official rejection letter on 23/7/12 so does the additional written clause for "the deposit to be refunded if loan rejected" override the 15 days clause?

Thanks

Yes

You should not get confused by mixing up the terms - fees and charges.

Just look at it this way for a moment:

SPA - legal fees, stamp duty for MOT, and disbursements. 3 separate things.

LOAN - legal fees, stamp duty for loan doc, and disbursements. 3 separate things.

From what you have informed, the developer will bear the legal fees for SPA and LOAN. As I have informed you, stamp duty for MOT is not applicable yet. So, it is confirmed that you would have to pay stamp duty for loan doc.

Developer will bear legal fees fro SPA and LOAN.

So now all you need to do is to check with the developer if disbursements are to be borne by you or whether it is included. Then you'll get your answer.

If possible, scan and attach the Offer to Purchase here so I can take a look and advise you better.

Please refer below.....however I've only cropped and display the essential information.

Poorly drafted and very ambigious. It can be argued either way. However I would say that you have a stronger case for full refund of the deposit as-

1. It is stated that the above terms is subject to loan approval. As such, the 15 days does not even begin to run until your loan is approved.

2. It should state the number of days for you to apply for a loan and obtain approval. Perhaps 10 working days. Snce there is nothing there to reflect a time limit, the benefit of the doubt must be given in your favour., i.e. partiew did not agree on a limit.

3. It should state a number of days for you to show proof of rejectal of loan. Mre often than not, a clause requiring proof via letter of rejectal by the bank would be inserted. Snce there is none there, the benefit of the doubt must be given in your favour again, i.e. that there is no need to even show proof of rejectal in writing (verbal is ok) and that there is no time limit for you to furnish the letter. It's better for your case that you have a letter of rejectal.

Insist for you deposit to be refunded. If the agent is evasive, consult a lawyer and take it further.

SPA - legal fees, stamp duty for MOT, and disbursements. 3 separate things.

LOAN - legal fees, stamp duty for loan doc, and disbursements. 3 separate things.

Let's say if SPA-legal fees is RM3000
How much is Loan-legal fees?

Will it be the same like SPA legal fees RM3000?

Thanks.