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 Lawyer's Corner v2, One-stop centre for any legal queries

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TSdariofoo
post Apr 10 2012, 10:58 AM

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QUOTE(jenova @ Apr 9 2012, 01:17 AM)
Hi Lowyat Shi Fu & Master, im thinking to get a property which bank value is higher 20k than selling price.

I thinking to mark the selling price higher to get more cash for renovation and owner said he is ok with that.... so can anyone share with me how to do so?

The property selling price is Rm270k, bank value RM290k. Should i tell the bank the "selling price" is RM290k, then 90% of loan = RM261k, so i could have more cash on hand..  if i want to do so, how much deposit should i pay the owner? How to run the whole process and avoid owner/seller refuse to pay me back the extra money???  sad.gif

Thanks Thanks ~
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You need to put the SPA price as 290k.

Then either:

a) In the SPA, the deposit paid by you (10%) is marked up by a further 20k to reflect that the balance is only 90% of RM270K and not RM290K; or
b) The vendor simultaneously gives you a letter of discount of RM20k.

However, to protect the vendor, you would need to give a letter to the vendor stating that you will be responsible to bear RPGT tax for the 20k portion, if applicable. If this arrangement can be made, the vendor should not have any problems to have the SPA to state 290K.
TSdariofoo
post Apr 10 2012, 11:01 AM

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QUOTE(phoenixxx @ Apr 9 2012, 02:10 PM)
Hi Dario,

If I'm purchasing a unit 2nd hand (subsale), do I have the right to the 1st owner's original SPA with the developer? It is a vacant lot with 2 yrs left in warranty.

Reason I'm asking is because despite what's been promised verbally (did not put down in SPA), I'm having problems trying to get the 1st owner to help settle some warranty / house defect issues. To my knowledge the developer has a right to refuse warranty with anyone other than the 1st owner as the SPA is between them and the 1st owner only.

I've asked for the original SPA in several occasions but failed to get them, and my lawyer is also having difficulty getting the full SPA from them (my lawyer only have the few "necessary" pages).

I think there might be a clause which states that if the developer fails to rectify defects within x amount of timeframe (1 month?) the owner can proceed to perform repairs him/herself and claim the repair cost from the developer.

I wish to try for this before my transaction completes (right now we've both signed, and we're in the 3-4 months pending loan for the balance disbursement).
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I see no reason why the vendor is being difficult. It's not a big deal, actually. Yes more often than not only the "relevant" pages are given, but you do have the right to ask for the whole set.

Why not write to the developer to ask for a photocopy of the full set and undertake to pay for it? I'm sure they would oblige.
TSdariofoo
post Apr 10 2012, 11:20 AM

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QUOTE(sohming06 @ Apr 10 2012, 11:09 AM)
Hi Dario, can you please advise whether below quotation reasonable or not for 378k property with 90% loan?

RM9,200 on S&P and RM4,700 on Loan.

Thanks.
*
Please check with the various samples in v1 of this topic. There's many to compare with.
TSdariofoo
post Apr 10 2012, 11:28 AM

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QUOTE(platingirl @ Apr 9 2012, 05:14 PM)

Understand that seller is in the midst of changing the title and will be topping up the money (paying back the bumi discount, i presume) ...


*
Never heard of this concept before.


QUOTE(platingirl @ Apr 9 2012, 05:14 PM)
Is it safe for me to buy the house in this case? What are the chances that the land office will reject, despite the current owner is willing to pay money change from bumi to non-bumi lot? As far as i know, its a leasehold property.
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I would advise you against it. However, since you're interested in it, check with your SPA lawyer and get his direct advice if he thinks that there is a good chance of success. icon_rolleyes.gif
TSdariofoo
post Apr 10 2012, 11:39 PM

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QUOTE(Ninjitsu @ Apr 10 2012, 01:48 PM)
Can I, as a buyer, sue my lawyer if the pre-agreed 3 months' SPA grace period is violated due to my lawyer's delay?
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You can sue if the lawyer is negligent and if you had suffered losses, i.e. you had to pay late penalty interest. As to what amounts to negligence depends on each facts of the case. What was the delay? hmm.gif
TSdariofoo
post Apr 10 2012, 11:45 PM

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QUOTE(k3v1n @ Apr 10 2012, 02:45 PM)
So what you mean is I should ask the vendor for key instead of lawyer?
*
No, what I meant was it is the vendor who decides if you can get the keys early. Of course you would still need to go through your lawyer to ask the vendor or the vendor's lawyer as one should always go through the proper channels. icon_rolleyes.gif
TSdariofoo
post Apr 11 2012, 07:22 PM

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QUOTE(Ninjitsu @ Apr 11 2012, 05:08 AM)
My bank delivered the Loan Agreement to my lawyer but they sat on it for 35 days before I was requested to go sign it. Pure negligence on the part of the legal firm.
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Agreed. Was it your SPA lawyer as well or was it another law firm appointed by the bank? How much late penalty interest did you have to pay in the end?
TSdariofoo
post Apr 11 2012, 07:55 PM

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QUOTE(lovepark4444 @ Apr 11 2012, 07:33 PM)
Interesting........... hmm.gif ..............Quite serious ..............Even my daddy firm cann't control every case and inefficient plus business mentally type also take only 1 week after receiving the original copy LO....beh tahan some more.....Very serious man for this.

It is you ask for donut from the law firm.

Dariofoo, if this case bring to court for negligence and will the judge ask the lawyer why. Can the provision at SRO 2006 punish the law firm for giving donut.  whistling.gif

Or Ninjitsu will be punish for death sentence for asking donut????
*
rclxub.gif doh.gif sweat.gif
TSdariofoo
post Apr 11 2012, 09:30 PM

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QUOTE(Ninjitsu @ Apr 11 2012, 08:38 PM)
SPA lawyer was not bank appointed. For this case, there is potential for late penalty charges. Presently, specified 3-month period is not up yet.
*
In that case you can't sue yet as you have not suffered any loss at the moment.
TSdariofoo
post Apr 12 2012, 01:19 PM

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eric84cool:
» Click to show Spoiler - click again to hide... «


Basically, since there's no individual title, all outgoings have to be pro-rated against the master title. It is quite common for the above clauses to be inserted. 5.01 would cover quit rent and assessment. 5.02 talks about monthly maintenance, while 5.04 talks about other possible new charges in the future, which is highly unlikely but which is simply inserted just in case there would be such charges in the future. So, nothing to worry about. nod.gif
TSdariofoo
post Apr 12 2012, 01:21 PM

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QUOTE(TheNew @ Apr 12 2012, 06:26 AM)
Buyer has signed an agreement to purchase and pay earnest deposit. And request :
1. Lower buying price
2. tenancy/rental must be revert to new buyer upon signing SPA

Seller agree to these 2 conditions and signed the agreement.

Now buyer want to withdraw and try to stop the cheque issue. As I know is buyer's earnest deposit shall be forfeited. Now what cation can be taken agaisnt the buyer? Please advice.
*
What is stated in the SPA? Does it allow the seller to sue for specific performance? Or does it just state that the vendor is entitled to forfeit the deposit? You need to base it on the terms of the SPA and nothing else, since it is a binding document which both parties have signed. icon_rolleyes.gif
TSdariofoo
post Apr 13 2012, 01:03 PM

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QUOTE(eric84cool @ Apr 12 2012, 02:41 PM)
thx Dario...I read from an article stating that S&P for commercial property is tend to be advantage on seller side rather than protect buyer side. Do you have similar S&P which could share to compare or to differentiate? Thank for ur help very much!
*
Sorry,can't help you there. It's outside the scope of what I do here. smile.gif
TSdariofoo
post Apr 13 2012, 01:05 PM

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QUOTE(dreamadream @ Apr 12 2012, 03:42 PM)
Hi Dario,

Would you pls help me check whether the legal fees charged are reasonable? Many thanks!


Meanwhile, the vendor has fully paid off his bank loan, is it advisable to lodge a private caveat or not?
*
Please compare with the many samples in v1 of this thread. Domo arigato notworthy.gif

QUOTE(dreamadream @ Apr 12 2012, 03:42 PM)
Meanwhile, the vendor has fully paid off his bank loan, is it advisable to lodge a private caveat or not?
*
Yes, that would be prudent to do so. nod.gif
TSdariofoo
post Apr 13 2012, 01:06 PM

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QUOTE(*NaRaYa* @ Apr 12 2012, 04:28 PM)
Hi, newbie here

my mom want to sell her office lot and already found a buyer. She received a call form buyer lawyer asking to pay RM500 for tax ( something like this , not sure ) .

Question : What fee my mom suppose to pay ?? ( mom already fully paid to the finance bank )

Thanks  smile.gif
*
No idea. Might want to ask them to put it in writing. Then your mum would have a better idea. icon_rolleyes.gif
TSdariofoo
post Apr 13 2012, 01:09 PM

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QUOTE(TheNew @ Apr 12 2012, 10:40 PM)
It is a letter offer by buyer to seller.Not yet enter Sales&Purchase Agreement.
The problem is the buyer stop the cheque issued which estate agent banked in.
In the agreement stated if buyer does not want to proceed to sign SPA then the earnest deposit shall be forfeited.
But now the buyer has ordered the bank to stop the cheque.So nothing to forfeit.... cry.gif
In this case what can the seller and estate agent do to claim back the earnest or proceed with the signing SPA???
*
Obviously you can't proceed to sign the SPA as the purchaser has stopped payment of the earnest deposit thus putting a halt to proceedings.

To enforce the seller's rights, you need to appoint a lawyer to sue the purchaser. Two options:

1. Sue to recover earnest deposit as agreed liquidated damages and upon receipt of same, close the matter; or
2. Sue to for specific performance, i.e. to compel the purchaser to complete the transaction and purchase the property.

Since it's a problematic purchaser I suppose option 1 would be the more viable idea. icon_rolleyes.gif
TSdariofoo
post Apr 13 2012, 01:11 PM

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QUOTE(k3v1n @ Apr 13 2012, 09:44 AM)
Thanks Dario, since I have started to pay the interested before I got the key, the snp lawyer told me that I should pay this progressive interest wo...is that true?? But now is their problem to slow down the process, why I should pay this progressive interest?  rclxub.gif
*
If they slow down, their loss is that they get their balance purchase price late.

You pay the interest now by virtue of your contract between yourself and your bank, and nothing to do with the vendor.

Unless the terms of your SPA is such that the vendor agrees to bear your interest pending the completion date, I can't see any other way but for you to bear it on your own.

icon_rolleyes.gif
TSdariofoo
post Apr 14 2012, 02:57 PM

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QUOTE(billooi @ Apr 14 2012, 12:46 AM)
Hi Dario,

With regards to purchasing of a low cost apartment, I have been told numerous conditions of sale by different agents. Among them are:-
1. Cant sell to individual..only to married couple earning less than a certain salary range.
2. Require land office approval.
3. Sale can be done if subsale unit of more than 5 years old.

I am very confused as no one agent has told me a same answer.

Would you happen to knw the requirements of transfering of title for low cost apartment?

Thanks!!
*
It depends on the requirement set by the State Authority in question. Situations nos.2 and 3 are common. Best to check with the management office of the place or with the developer directly. icon_rolleyes.gif
TSdariofoo
post Apr 15 2012, 07:36 PM

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QUOTE(dore182 @ Apr 15 2012, 01:24 PM)
Hi Dario,

Can application for Substitute Services being used to issue notice of demand beside summon?
*
No, it is only for the summons itself. Notice of demand can be sent by normal registered post. Unless there is a contract and the contract stipulates the form of service of notice. More often than not it is by registered post and deemed accepted 3 days after postage. icon_rolleyes.gif
TSdariofoo
post Apr 18 2012, 11:09 AM

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QUOTE(dore182 @ Apr 16 2012, 02:43 PM)
is that registered post send means our obligation fulfilled regardless he is oversea?
*
Depends on what is defined by your obligation as per the agreement. What are the facts here?
TSdariofoo
post Apr 18 2012, 11:11 AM

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QUOTE(shinrei @ Apr 17 2012, 12:45 PM)
the same lawyer will execute.both snp n loan for me. is this ok? since a lawyer is handing both S&P and loan so by right can waive the developer confirmation,administration charge, transportation and miscellaneous from the loan document right? biggrin.gif
  -------------------------------
*
The various samples in v1 of this thread will give you the answers. There's so many there to check and compare.

QUOTE(shinrei @ Apr 17 2012, 12:45 PM)
since a lawyer is handing both S&P and loan so by right can waive the developer confirmation,administration charge, transportation and miscellaneous from the loan document right? biggrin.gif
  -------------------------------
*
Developer confirmation can't be waived as for the bank, the lawyer is writing with the bank as client and thus, the confirmation and undertakings are given to to the bank. Others can.

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