congrats on your purchase coffeegal

You're here!!
Ya, finally, thanks.

COMPLAINT AGAINST HOUSING DEVELOPER ON FAILURE TO COMPLETE MY HOUSE AND TO DELIVER THE VACANT POSSESSION AND THE KEYS TO THE PROPERTY ON SCHEDULE ACCORDING TO SALES & PURCHASE AGREEMENT

Developer: TSL Development Co. (Regn. No. 144/06)
License no: L1208/KP/HD/03/242
Permit no: P1183/KP/HD/03/242
Address: No. 13, Lane 5, Then Kung Suk Road, Upper Lanang Industrial Estate, 96000 Sibu, Sarawak.
Telephone: 084-211122
Fax: 084-218366 / 219366

TSL Development Co. has failed to deliver my house on schedule and deliberately delayed in completing a double-storey terrace house at Sublot 21, Lot 99, Block 9, a housing project located at Sibu District Town. It has been 560 days and still on-going.

We are the second purchasers of the said property and have purchased the house before the issuance of the Occupation Permit for RM350,000 from the first purchaser. The first purchaser of the property had entered into a sales and purchase agreement with the developer on February 3, 2009, with the scheduled completion date of the housing project on February 3, 2011.

The sales and purchase agreement between the first purchaser and the second purchasers was signed on September 11th, 2009 and the transfer was concurred to by the developer on the same date with the signing of Deed of Assignment. The Occupational Permit to the house is still not yet being issued. We have tried to engage those persons-in-charge to discuss on the matter such as Mr. Sia Hua Ping, Mr. Ting Kah Ching and Mr. Ling Sieng Ying but in spite all the efforts, all are in vain.

We are extremely disappointed and distraught with the prolonged problem. We hope the relevant authorities will take legal action against the errant developer soonest possible.

Hi,
I recently purchased a property and paid the booking fees while waiting to get the loan from the bank etc. This is a condo still under master title. I intended to use my own lawyer but was advised by the agent not to do so as the lawyer he introduces is already working with the developer hence it will make it easy to transfer the name from the current owner to me. If I take my own lawyer who is not familiar to the developer, it will take much longer for correspondence etc. The 1st question is doe sit make a difference which lawyer I use as per my scenario. Will the lawyer who is also doing work for the developer represenet me whole heartedly?

I'm concerned that this process for name transfer and the bank to release the loan fund drags on for too long as there is a clause in the sales order form that if the bank doesn't make the full payment within 3 months of signing the SPA, I need to pay a 8% penalty. That brings me to my 2nd question. Is that standard ie the 8% penalty if the payment is not release by the bank in 3 months from the date of signing SPA? You can see I'm very new in property investment from my questions. I find this clause very unfair as until then, the current owner still has the property with him and can continue to rent or stay in it. On top of it, he can collect 8% from me for nothing. If I am selling a property, it will be in my interest to delay the sale with such a clause in place ...... or am I getting this wrong. Please help advise. Thank you very much.

This post has been edited by CarFan: Aug 19 2012, 01:07 AM

Hi. Want to clarify things in "solicitor renumeration oder 2006", for the S&P and loan agreement part, stated below

For the first RM150,000 -> 1.0% (subject to a minimum fee of RM300)
For the next RM850,000 -> 0.7%
For the next RM2,000,000 ->0.6%
For the next RM2,000,000 -> 0.5%
For the next RM2,500,000 -> 0.4%

Notwithstanding the above rates, in the case of any transaction governed by the Housing Development (Control and Licensing) Act 1966 [Act 118] or any subsidiary legislation made under that Act, the remuneration of the solicitor having the conduct of and completing the transaction, whether acting for the vendor or the purchaser, shall be-

(a) RM250, if the consideration is RM45,000 or below;
(b) 75% of the applicable scale fee specified, if the consideration is in excess of RM45,000 but notmore than RM100,000;
© 70% of the applicable scale fee specified, if the consideration is in excess of RM100,000 but not more than RM500,000; or
(d) 65% of the applicable scale fee specified, if the consideration is in excess of RM500,000.

if in the case, one buy a house worth 500k from developer which the S&P signed under HDA 1966,
Legal Fee = (500k-150k)*0.7% +1500 = 3950

Then the solicitor must give discount for another 30%, which they should charge at the RM 2765?
The Legal Fees is RM 2765 for S&P and RM 2765 for Loan Agreement?

Thanks.

posted wrongly..paiseh

This post has been edited by yorkhan: Aug 21 2012, 09:23 PM

1. Of course, the lawyer you select will make a difference. Just like how the medicine you take from two different clinics would have a different effect on curing your illness. Some are better than the rest. I think you should read my post at the first page of this thread on selecting a lawyer for your SPA. It ought to be useful in your scenario.

2. This 8% late penalty interest is quite standard. If you notice, there is a similar provision whereupon if the vendor fails to hand over VP to you within a certain number of days after you have paid the balance purchase price, the vendor has to pay late penalty interest to you (8-10%). So, it works both ways.

Of course it is not in your interest to delay the transaction, but sometimes things happen out of your control. But, you are to be faulted for it if it is from your side of transaction, eg your financier, LHDN who assessed your stamp duty payable, etc. No fault can be attributed to the vendor in such cases.

"I find this clause very unfair as until then, the current owner still has the property with him and can continue to rent or stay in it. On top of it, he can collect 8% from me for nothing."

Your statement above is, with respect, misconceived and flawed. Your reasoning is from an angle which is irrelevant in the circumstances. We are looking at a sale & purchase. The vendor intends to sell the premises and obtain the full purchase price. Having possession and rental, if applicable, is of no relevance as the vendor is selling the property. He has committed to the price, and if there is a delay - factor in appreciation of property and depreciation of money through inflation - and the vendor would be prejudiced. The only way to make up for it is to charge you interest for the delay. It would also spur you to move faster, as opposed to a scenario where there would be no late penalty interest. \

Perhaps you can put yourself in the shoes of the vendor and reflect from their viewpoint.

Having said so, 3 months is usually enough, if you have applied for a loan early and the loan documentation can kick off simultaneously or soon after the date of the SPA.

Calculation is right for SPA. For loan it is right only if you're taking 100% loan If any other amount, you would need to calculate it based on the loan sum, not SPA price.

Hi Dario,
Many thanks for your answers
On your comment on 8% penalty interest between developer and buyer versus my situation of current owner and buyer (me) is quite different to be honest. In the case of developer, they also don't have the property as it's under development etc so don't earn anything from it where else in here, the owner is in possession of the property and collecting rental while potentially also being able to collect 8% interest which will be significant for a 90% loan. I do however understand what you say about appreciation of property etc but still find this to be a little unfair on the buyer. COnsidering that this is standard and cannot be negotiated, what are the areas that the seller can delay this and me potentially needing to pay this interest?

I think you've misunderstood. Even for subsale, if the vendor delays handing over of VP to you, he has to pay interest. Look it up in your SPA. Hope your lawyer did not forget to insert it for you.


Delay from seller would extend the completion date of the SPA in your favour. If 10 days is given to the vendor to obtain the redemption statement and he takes 20 days to do so, another 10 days is added to your completion date (basically you now have 3 months and 10 days to complete it). So there's nothing to worry about.

Hi now i like to ask about propertytitle.
i vooked a subsale house, now engaging lawyer to prepare s&p.
1. if i put my name only, can i add my spouse name next time ? what is the cost & procedure to add name?
2. if intend to put two person name, is there a way to say im the main owner or shareholder of the house? is putting my name as primary workable?
3. if divorce, husband have the right to get the share of property even the property is only under wife'sname?
4. for subsale s&p if seller want to sign first but stamping later, any impact to the buyer? i guess seller want to save the tax incurred so request to stamp much later. sign august but stamp on oct.

Thanks.

This post has been edited by mlyuki: Aug 26 2012, 04:30 PM

Hi Dario,

Just to check what I should do if bank already released 1st payment after sign off S&P more than 2 months but the name transfer side still pending. Meanwhile, I have to start to pay my 1st instalment on September. Is it the correct procedure or I shall wait for name transfer completed and key handover then only start to pay?

Please advise.

Thanks.

Is there any website to refer on procedures to evict tenants out of premise for owing 2 months (coming to 3 months) rental?

Already try to communicate with tenants but they are falling on deaf ears. Thanks for the advice

Hi Dario,

I have 2 questions and appreciate if you could enlighten me.

1) I understand that EPF and insurance policies are excluded from will. What happens if husband names wife as beneficiaries in both EPF and insurance policies but both die together? Since the beneficiary named in the EPF and insurance policies is dead, how is the money distributed then? If there is a will, does it then follow the will?

2) Imagine the scenario where husband names wife and 3 kids as beneficiaries and the surviving member(s) get all the shares BUT what happens if ALL die together? Assume no other persons are named as beneficiaries. What happens to the assets of the deceased(husband)? Does it then get distributed according to Malaysian law? Or the government takes it?

Thanks

edited. sorry.

This post has been edited by cubix: Aug 26 2012, 03:00 PM

1. Property purchased by cash or with loan?
2. You can put one name as 2/3 owner and the other as 1/3 but it has no difference as you can't transfer your undivided share in the property. Basically, the property can't be divided into 3 pieces, even though shares are on a 1/3 basis.

3. Who paid for the property or the instalments?
4. Then pay the deposit later as well. Or pay it into a lawyer's client's account as stakeholder in the interim.

You are bound by whatever has been agreed in your loan agreement. It has nothing to do with your SPA. The bank is not concerned with the transfer of ownership. As far as they are concerned, part of the loan has been disbursed, so since you have agreed to start paying from the date of first disbursement, you are bound by it and the bank has the right to demand for payment.

Procedure:

1. Appoint lawyer to issue a eviction notice giving 1 month to the tenant to vacate the premises.
2. If they still refuse, instruct lawyer to file civil suit for an order compelling the tenant to vacate and pay outstanding rental (plus mense profits - double rental from the expiry of the notice period until VP).
3. Should not be a problem obtaining the Court order if your paperwork is in order.
4. Serve order on tenant - give him 48 hrs to vacate.
5. If still refuse, instruct lawyer to file enforcement proceedings - Court Bailliff will attend to compel the tenant to vacate the premises. At this stage, if the tenant is still within the premises, then they have to leave immediately.

1. It does not follow the will. EPF and Insurance Policies work on the basis of payment made to nominees. However, if the deceased left a will, then the Executor of the will who would apply for a Grant of Probate obtained from Court and the monies will be paid out to the Executor who will then distribute it accordingly to the surviving next of kin.

If there is no will, then an Administrator would be appointed by the beneficiaries. This Admin will apply for Letters of Administration from the Court. Similarly, this LA would be produced to EPF and the insurance companies, and payment would be made accordingly. It is not a big issue.

2. Then it is similar to a scenario where the deceased dies intestate (without leaving a will). So, the procedure would be same as above, which I would repeat here:

If there is no will, then an Administrator would be appointed by the beneficiaries. This Admin will apply for Letters of Administration from the Court. Similarly, this LA would be produced to EPF and the insurance companies, and payment would be made accordingly.

The Govt would not take it, but unclaimed monies would be deposited with the Accountant-General's Department who would keep it as a stakeholder unless a person claiming to be a beneficiary steps forward and applies to claim the sum.

I remember a chain e-mail a few years back regarding those who do not appoint nominees for their EPF or those whose nominees die and no new nominee is appointed. The e-mail states that the monies will immediately go to Amanah Raya Berhad and it would be very difficult to get the monies out. This is false information and should be disregarded. Amanah Raya Berhad has no right to claim monies from EPF in any circumtances where the EPF account holder does not have a nominee.

hi dariofoo, i want to ask current i got penalty due to over due date from snp. the annual 8% interest is on what price?