When was the SPA aborted? Was it within 1 yr period? When did the lawyer apply for the refund? You need to establish more facts before you can accuse the lawyer of being negligent. Just because the SPA was aborted does not mean that the lawyer is negligent. You need to prepare a proper chronology of events and see what went wrong, how it went wrong, and whose fault it was. There are other parties involved as well, from what you stated in your earlier post. About liquidators and some quit rent issue. For now your explanation is vague, so I cannot say for sure if you have a good case against the lawyer for negligence.

Hi Dario,

When paying earnest deposit and signing booking form, normally the following clause is inserted in the booking form:

"Purchaser hereby undertake to execute SPA with 14 working days from the date of acceptance of purchase provided there is no delay from Vendor or vendor's solicitor in agreeing terms and conditions of SPA, failing which the said earnest deposit shall be forfeited."

This serves as a protection to vendor.

But how about protection to the purchaser?
If the SPA is ready and purchaser signs the SPA within 14days but vendor delays signing the SPA, does purchaser have rights to abort the purchase and demand for earnest deposit refund?

Hi Dario

Again thanks for your contribution to this thread



I got a question regarding purchase of a leasehold property from bumi to a non bumi

However that unit is NOT a designated BUMI lot


We still need to get state consent right?

Normally in this scenario, do we state in the S&P that the 3+1 period only kicks in once consent by the state has been given?

Worry that the state will delay or reject the first time hence cannot meet the 3+1 timing


What is the normal S&P procedure on this?

Thanks

Hi Dario,

Just to check whether any charges to Seller if the process for SPA take more than 90 days? This is mainly due to his bank delay to present the title.

Besides, when can I takeover the key if the last payment already released by bank? What is the normal procedure? Can I charge the seller if he handover late based on the date of last payment released?

Thanks.

Why would the purchaser want to abort the purchase when he wants the house? And when he has paid legal fees, applied for a loan, etc? It is not common for it to happen.

If the vendor delays signing the SPA, the completion date will be longer and the purchaser would have more time to complete the transaction. Would that not be beneficial to the purchaser? in the interim, the loan processing and loan documentation can be sorted. This will mean faster turnover, so it can be completed within the 3 months' period. The vendor is punished by having to wait longer for his money, if he delays signing the SPA.

I would not know as I do not have a copy of the title. What does it say? If it says consent is required then it does not matter when the owner is bumi or otherwise.

If consent is required, then it is a condition precedent to the SPA. If no consent is obtained, the SPA is nullified and the deposit is refunded. Time starts to run from the date of receipt of the letter of consent from the authorities. More often than not, a period of 6 months is given to obtain consent. Sometimes even 6+ 3, i.e. a total of 9 months. More than enough to apply and then appeal, if unsuccessful.

Delay by vendor due to bank delay to PRESENT the title? Presentation refers to presentation to register at the land office. This is done on the purchaser's side, not the vendor. Perhaps you mean delay by the bank to handover the title to the purchaser's or vendor's lawyer?

If the delay was as such, then the completion date would be extended in your favour. Calculate the number of days of delay from the number of days given to the vendor to obtain title from his financier. If 14 days was given and 20 days was taken to perform, then you have another 6 days to add to your completion date. So, there would be no late penalty interest for that extra 6 day period.

What is stated in your SPA?

Usually the vendor has to handover keys within 5 working days from the date of receipt of the balance purchase price. On the 6th day onwards, you would be entitled to charge late penalty interest upon him. However, for your case, check your SPA as to how many days are stipulated.

Hi Dario,

I have been following this thread quite often and reading all the useful facts. Today I have a question and hope you can help me out on advice.

I have a joint house with my spouse. House title as well as bank loan.

My intention is to remove my name from the title in order to;
- claim EPF acct 2 for my next house (first house claimed EPF acct 2 already)
- be eligible to undertake a third prop. By transferring my name, the third prop will be a second without the 30% deposit.

Our joint house market value is estimated about 550k.

This is the quote from the lawyer for transfer only;

Memorandum of Transfer RM 2,375.00

CKHT 1A RM 300.00
CKHT 2A RM 200.00

RM 2,875.00

DlSBURSEMENTS­charge payable to respective
government bodies


6% Government Tax RM 172.50
Stamp duty on the Memorandum of Transfer RM 10.00

(Estimate)
Registration fee on Memorandum of Transfer RM 500.00
Land Search RM 90.00
Printing charges RM 50.00
Travelling charges RM 250.00
Miscellaneous RM 50.00

RM1,122.50

TOTAL RM3,997.50

Need you advice on the pricing. Is this a fair value.
Also, by doing this, can I achieve my intentions.

Regards

This post has been edited by xbotzz: Sep 27 2012, 02:34 PM

Hi Dario, further to my initial questions to you earlier on 27th August 2012, I have submitted the request to the Bank to transfer the ownership of property from my father to my mother. I also got a quotation from a law firm as attached. Can you please advise if the fees are reasonable? Why is the professional charge for DOA so high? Thanks.

Dear Dario,

i just bought a property, and i got my loan secure, and signed the bank offer letter 3 weeks ago. now, the developer (my sale agent) called me and sent me the S&P, DMC (Deed of Mutual Covenants) for signing.

i thought all these legal thing must be done in the lawyer office, but my sale agent told me, just sign it and then either pass to him or send to the developer office, then they will process the next action. he said every buyer doing the same process.

a) is "the sales agent may acts as a middle man btw the buyer and the lawyer." normally happen process?

another thing, during i sign bank loan offer letter, i have to initial every page of offer letter. but in my s&p and DMC case, he said no need, just sign on the page where ask for my signature.

b) is it a must or just optional to sign initial on every page?

Hi Dario,

i am in midst of purchasing a subsale unit strata title, now dealing with the agent.

so far right now, i got only the house pricing, and approximate of what i would be spending (lawyer fee, stamping, agent commision, etc.)

i had paid the deposit to the lawyer firm and they issued a receipt for me stating that it is the deposit for the unit i am purchasing. the lawyer firm is the same firm representing the owner when purchasing the unit from developer.

so fat i had not got in touch with the owner, everything was done with the agent, no money has been paid except for the deposit for the house.

i am waiting for the approval of my loan, which i'm pretty sure will be approved.

so, the only documents i have regarding to this deal is the firm's receipt. i am waiting for my loan approval and the lawyer's document preparation to be done so that i can sign it.

what i want to ask is,

1. am i doing the steps right?
2. what am i to expect to sign when i go to the lawyer firm? S&P? Deeds of assignment?
3. are there anything else (eg. documents or working paper) that i need to get from agent/owner/lawyer
4. any advice?

When it comes to love and affection, the fees are not scaled according to the purchase price but is of a "reasonable amount not less than RM300".

Download the SRO at the first page, and see page 21 clause 4(a).

If you still think that it is so expensive, then get another quotation, and keep on doing so until you are satisfied with the cheapest.

This post has been edited by dariofoo: Sep 27 2012, 04:00 PM

Hi bro I have some question- a bit complicated. This is the story 1st. I recently rented shop lot (corner- 1st floor) for a tuition center. Bomba came for inspection and did not want to approve surat sokongan pelesenan for my center because the main door was made of glass.They requested that the door be replaced with pintu api TKA (fire door) and a metal staircase at the back- So the question about the door - i have to change the door or land lord change the door? I'm just a tenant I'm not sure if its my responsibility ? I'm wondering how the landlord can get sijil perakuan bomba considering this pintu never pasang. I quite sure my landlord will not agree on the staircase though(MPPP part can be very hard to deal and long wait). This shop lot is at least 8 years old already. Hope you can help me with this question. I'm not talking with the landlord about it yet cause later he takes advantage of my ignorance and push to me. I heard the door cost 2k at least. Thanks in advance

Same advice as my previous post. When it comes to love and affection as consideration, it does not follow the scaled fees and the fees are "any reasonable sum not less than RM300".

Of course, don't expect RM300 to be the fees but having said so, what is reasonable differs from one person to another.

It is not a difficult transaction and for this lawyer to charge you so high for disbursements itself (RM250 for transport is too high), I'd advise you to get another quotation.

a. Anyone can be a middle man but if you insist to sign in front of a lawyer, of course the lawyer must oblige and allow you do so. The problem is that Malaysians don't like to waste time and effort so if there's a runner who's willing to collect all the documents, they are more than happy. So, yes, it is a normal process but if you feel that you want to sign in front of a lawyer, by all means go ahead and request for it.

b. optional but it is recommended to do so.

You have appointed a law firm to act for you who was the law firm acting for the vendor in his capacity as purchaser for the same unit?

thank you Dariofoo
you enlighten me a lot.

i suppose. did i do anything wrong here?

---

Added on September 27, 2012, 4:12 pmthe agent suggested for me as this can reduce the time and get a better price for the lawyer fee.

This post has been edited by EternalC: Sep 27 2012, 04:12 PM

I'm sure that in your tenancy agreement, there would be a clause which states that all costs/charges/fees/taxes in relation to your business as tenant will be borne by yourself.

Even if there is none, common law is such that it is you who has to bear for it yourself, since these are requirements set by the licensing authority before they allow you to set up your tuition centre. A normal shoplot as it is does not require such additional fixtures since there is no application for such license.

You want to set up such business in the premises, so you have to pay for it. That is my legal opinion.

Hi Dario

i bought a unit of SOHO, it surprisingly under HDA act at S&P.
but it is stated at Schedule A - service apartment (SOHO)

but, i found this follow section at Deed of Mutual Covenge (DMC), does this mean i actually cannot use my unit as office?

Section 4.01 House Rules
(a) (1) Use of Parcel .
The Parcel has been constructed for private dwelling and shall be used for residential purposes only.
(2) Restriction / prohibition on use of Parcel
The following uses of the Parcel are prohibited: -
(a) utilization of the Parcel or any part thereof as a store for the purpose of storing any goods or merchandise;
(b) the usage of the Parcel for the retail of any products or merchandise;
© The utilization ofthe Parcel as a laboratory or workshop;
(d) operation of a massage parlour;
(e) operation of a funeral parlour or the display of funeral paraphernalia including but not limited to cofns;
(i) operation of an office for purposes relating to or connected with the business of undertakers or funeral activities or paraphernalia;
(g) holding of any manner of religious activities or the operation of an administrative ofce relating thereto;
(h) Any illegal unlawful immoral or objectionable, trade, business or activity which may become a nuisance or give reasonable cause for complaints from purchasers or occupiers of other parcels of the said Project;
(i) Any business, trade or activity which involves gaming or entertaimnent in any form; and
(j) Any other business trade or activities (illegal or otherwise) which may be deemed by the Management to be injurious, undesirable, offensive or detrimental to the nature, character or reputation ofthe said Project.

This post has been edited by WoodStock: Sep 27 2012, 04:22 PM