1. Two names - same name, but in different capacity. One is in her capacity as the registered owner, and another in her capacity as the executor of the estate of the deceased owner of the other half-share
2. No problem
3. Cannot register with her in her capacity as single owner because she is holding the half-share as executor only.
4. It won't have any effect with the SPA,so don't worry.

1) Yes that's the base legal fees. There are also other legal fees like filing of CKHT, entry/withdrawal of caveat (if applicable) and consent. It does not include disbursements.

2) There's no such thing as legal fee stamp duty. This stamp duty for 10k is for the memorandum of transfer (MOT) or deed of assignment (DOA). It does not include stamp duty upon the loan doc.

3) 0.5% of loan sum. Flat rate. 20% less if Islamic financing. Yes this is the doc between you and the bank.

Can sign first and amend later. It's done all the time. Just make sure that you attend to put your initial for all the amendments as it indicates that you agree to it.



This post has been edited by dariofoo: Dec 10 2011, 10:00 PM

If got individual title - then for both SPA and loan there would be entry and withdrawal of caveat, i.e. two caveats - one by you and one by the bank.

For master title, what your loan sol told you is correct.

Get the correspondence to see who's at fault. Look at date of letter by bank and date of collection.

How much was the interest?

Then how are you going to prove your case against the lawyer or the bank?

How much was the interest charged?

Although I do not have a crystal ball and do not know the true facts of the case, if both parties are putting the blame on each other on the issue of the cheque - I would actually be more inclined to believe the lawyer rather than the bank. Reasons?

1) It is the lawyer who would normally call the bank to chase after the cheque;
2) It is the bank who will always take their own sweet time to issue the cheque;
3) The lawyer would not want to delay collecting the cheque when it is ready as it would defeat the purpose of calling up the bank and chasing them to issue it.

The above is the general scenario in MAJORITY of cases, not all. Perhaps your case fell in the minority of cases?

Surely when the bank issued the cheque there would be a cover letter annexed to it,right? Or perhaps an advise slip?

This post has been edited by dariofoo: Dec 12 2011, 11:37 PM

I answered it in para (3) - 0.5% of loan sum. Flat rate. 20% less if Islamic financing.

Ask for it in writing. Give them 48 hours to provide you with a copy, failing which you will file an official complaint with the A&S Discip Board.

The gain is calculated from price at time of disposal less price at time of acquisition.

The price at time of acquisition by initial owner (deceased) is not relevant.

Let's say now you dispose it at RM100K now. Perhaps it was transferred to her name as beneficiary 2 years ago on 13/12/2009. LHDN will assess the market price of the property at that date - 13/12/2009 (or thereabouts).

Let's assume that it was RM80K at 13/12/2009, so the gain is:

RM100K - RM80K = RM20K.

It is not nett gain at 5% of RM20K.

Acquisition price also includes cost of renovations, legal fees, agent fees, etc. Add that to acquisition price - perhaps RM5K

Final acq price = RM85K.

Disposal price also includes legal fees, agent fees, etc. So you deduct that from disposal price - perhaps RM8K.

Final disposal price = RM92K.

Nett gain = RM92K - RM85K = RM7K.

Taxable gain - 5% of RM7K = RM350.00

However, you would need to pay 2% of the purchase price upfront first. LHDN will refund the rebate to you later once they've processed your file.

* All receipts evidencing renovations, legal fees, agent fees - must be submitted.

* In the Form CKHT 1A (for vendor) - at the part where price of acquisition is required to be filled up - LEAVE IT BLANK. LHDN will fill it up with their assessed market price and they'll do the final math.

LAWYER'S CORNER WILL BE TAKING A BREAK

Sorry guys am off for an outstation trip now.

Shall be back tmr evening and shall endeavour to answer all outstanding queries by tmr night or friday.

Cheers.

This post has been edited by dariofoo: Dec 14 2011, 12:05 PM

1. Master title is basically a huge title owned by the developer (or landowner who JVs with the dev) which has yet to be submitted for subdivision into indiv/strata title after the completion of the housing development. Sometimes it is also known as block title.

Indiv title is basically the one particular title which identifies the individual unit in a housing development. For high-rise, it is known as strata title, but basically it is an individual title.

Why Master Title and not straight? Well, for strata title, the dev can only apply for it once the high-rise has been completed. If normal indiv title (eg for a terrace-house project), some developers apply for subdivision early and offer indiv title as part of the package. Some don't, and wait til they reap the profits from the sale. Perhaps because it is expensive to subdivide, or perhaps they haven't settled their loan with their end-financier, hence the master title is still encumbered.

2. No major differences. No partitions or subdivision. The boundaries are also not final (like duh!).

3. Because if it is Master Title, the unit owner is not the registered proprietor of the master title. Hence, the bank can only create the DOA as security for the loan granted to the unit owner. The DOA basically denotes assignment of beneficial ownership of the unit to the bank. The sequence of the DOA goes on and on for every subsale, and the owner must keep the trail of DOAs all the way to show that beneficial ownership has been assigned to him properly.

If individual title, the unit owner is the registered proprietor. Hence, the unit owner can agree to charge the property in favour of the bank as security for the loan. The owner is the chargor and the bank is the chargee.

4. Four types of caveats:

a) Private Caveat (PC)

The most common type of caveat. Any tom,d*** and harry with a caveatable interest can lodge a PC upon a property. Once a PC is lodged, it restricts any dealings upon the property. Most common intent is to prevent transfer to another party. You have caveatable interest like when you put in 10% down payment when executing a SPA. A PC can last for max 6 years.

A PC can be easily removed by the registered proprietor. An application to remove is made, notice is given to the person who entered the caveat, and within 2 months, if no just cause is given why the caveat ought to remain, it is automatically removed. The registered prop can also sue that person for compensation.


b) Registrar's Caveat (RC)

This is a caveat which the registrar or land administrator can lodge upon the property. Effect is the same as PC, but it is more 'powerful' because it also restrains dealings which have been presented for registration but not yet registered. So, it can be back-dated to even stop dealings which have been presented. A PC cannot restrain a dealing which has been presented.

More often than not, RCs are applied for by the govt to restrain debtors who owe the govt from transferring their property and defeating the govt's claim against them.

I've also heard of landowners who are victims of fraud apply to lodge a RC to protect their interests while they pursue legal action against the fraudulent party. In that case, the transfer was presented for registration but not yet registered. If by way of PC, it cannot be prevented from being registered. However, the RC can do so. Thus, the alleged fraudulent transfer could not go through and would still be pending.

The 6 years limit does not apply to RCs. It lasts as long as the Registrar does not remove it - or until an application by the registered proprietor, or a Court order is issued to compel its removal.

c) Lien-holder's caveat.

In the old days, when banks didn't want to go through creating a charge over the property and when there were no lenghty facility/loan documentation, a person can deposit his original title (called an IDT) with the bank, who will in turn grant him a loan. The bank can then apply to lodge a lien-holder's caveat over the property to secure its interest. If the borrower defaults, the lien-holder can go for an order for sale. This type of caveat is, however, very hardly used these days.

d) Trust caveat.

Basically to protect the rights of trustees and beneficiaries of property given to them pursuant to a trust. Once again, it is hardly used due to one condition - it can only be removed with the consent of both trustees AND beneficiaries. That may be cumbersome, as it is not easy to gather everyone around just for that. As such, most beneficiaries would just lodge a private caveat over the property in the interim. It serves the same purpose, and they can just withdraw it on their own accord when they wish to, without the need to refer to the trustee.

Hope the above explanation helps.

Your lawyer is right. It must be transferred to her name as beneficiary, and only then can it be subsequently transferred to the buyer. Don't worry about stamp duty as it is RM10 only.

With regard to RPGT, yes she would still have to fill up the forms and submit it, but surely there would be no RPGT as the market price as at date of acquisition would be almost the same as at date of disposal - since it is a back-to-back MOT. But for formality sake, the forms have to be completed and submitted.

1. One name is ok. Surely the wife is signing on her husband's behalf and has his authority to do so. If two friends are owners, then perhaps it would be prudent to have both to sign.

2. Verbal promises is worth nothing as in the event of a dispute, it is your word against his word. So how do you prove your case? If you want to be prudent, get the owner to list out the items and get it annexed to the SPA.

3. The lawyer is supposed to act on your behalf. He is your lawyer. Common solicitor only refers to his role as assisting the vendor to redeem the loan, prepare discharge docs, and filing CKHT forms. At all times, he must act in your best interest.

Surely you trust the capabilities of your own lawyer better than another lawyer right? Given the choice whether to retain your SPA lawyer to also do the loan doc, or take bank panel lawyer, it would be better to stick to the same lawyer as it usually makes it faster - it eliminates a trail of correspondence. However, i used the word "usually" as there could be a delay if the lawyer is not adequately experienced in handling the loan docs. So it could backfire.

Choice of lawyer is very personal. Depends on the individual. If you're confident that your lawyer can do the job, then by all means go ahead.

Never heard of that. Let me check and get back to you.



Calculation of the sum in cases of early settlement would be a question best answered by an experienced banker.

If I'm not mistaken, the CCC replaces the need for a CFO. With the CCC, the owner can move into the unit already. I think this came into place sometime in 2007 to eliminate the need for CFO, which was a cumbersome process, full of red tape. However, if i'm not mistaken, it only applies to new properties which are not larger than 2 stories.

If your property fits the description, then the bank ought to be satisfied with proof of a copy of the CCC in order to release the balance loan sum.

Milo_O:


Disbursements you can always nego for discount. No prohibition there.

For stamp duty upon loan, it is always rounded up to next thousand - so your loan is deemed to be RM511K - so the sum is correct.

Purchase of documents from bank - the bank charges for copies of the loan doc. Price ranges from RM100-RM150.

Land search - RM30/search.

Bankruptcy search - if same lawyer for SPA and loan, it needs to be done once only. The onus is upon you to search whether the seller is bankrupt, not the seller, so you have to pay for it.

Total disbursements for both SPA and loan is RM500. If you've read the earlier posts you'll have a rough idea as to whether it is too much and what you may do.

There's no difference, from the way I see it. It's not like a car where some people are hesitant to buy at the end of the year as it will be referred to by the year of purchase/registration, and not the month.

Any superstitious beliefs?

There has been no announcement as to change of service tax to date, so I guess it would still be 6%.

For CKHT forms - please note that filing of forms is free - you're paying legal fees for the lawyer to prepare and file it. Please refer to SRO 2005 which you can download at the first page. The legal fees has not changed since then so I doubt if the coming year will make any difference.

The RM20 for SD is affirmation fees paid to the Commissioner for Oaths to attest your signature upon the SD. The SD prepared is the one for Owner Occupancy as required by the bank.

The RM100 is for payment to the bank for pre-printed loan documentation. The loan agreement, charge annexure, and other security documents must be bought from the bank. Standard practice.

Cheers.

Latest update: Hong Leong charges RM250.00 for loan documentation effective 1st Dec 2011. Docs are in soft copy to be printed by law firm. That means that the charges are basically for them to put their precious signature upon the loan documentation. Must be super duper expensive and precious ink which they are using!

Not only that, there's a RM50 charge for execution of discharge of charge OR deed of RnR. That means when you later sell of the house you have to bear this cost as well.

So now we can say that it ranges from RM100-RM250.00