I have a question here.. Do I need to withhold 2% retention sum (i.e. 2% of the sale considetion) and remit the same to the Inland Revenue Board as required under the Real Property Gains Tax Act if i buy the property from a property developer? The profits of the property developer would be subject to income tax.

Dear dariofoo, can you please advise me on a caveat matter. I just bought a subsale leasehold condo. There is strata title but it is still with the developer. My lawyer will do direct transfer of title with the agreement of developer. Since the title is with the developer, the owner will not be able to sell it without my knowing, right? If he really insists to sell, he will breach the snp and he shall pay me in double of the deposit, right? Do you think I still need to do the private caveat? It will cost about 1.5k for placement and removal. I would like to save it up if it is not so necessary. Please help! Thanks!

Hi dariofoo,i just completed all process (include tranfer title) for buy my house, nearly get my house key in this week, but the previous owner want to claim the late interest before handle the key to me. Is it i need to pay the late interest to him?is it legal he hold my house key since the last balance $ from my loan bank lawyer already issued to him?lawyer already inform him the reason late because of developer late conformation on MOT between him and developer.If he still chasing the late interest, mean he will hold the house key forever, anything i can do to get my house key back?Now i already start the monthy installment but without house key, look like unfair to me.

dario..just wanna add another question on top of above question, what if new owner just break in since it already his 'legal' house right? it is wrong/illegal? usually people do change all the keys of house once they entered new house..

This post has been edited by axantra: Apr 27 2012, 11:26 AM

No. It only applies to subsale only.

1. Owner can still sell it to another person and tell the same story right? That the title is with the developer and that the dev will transfer it to purchaser B.
2. That would depend on what is stated in the SPA. Check it.
3. I would advise you to do it.
4. Why so expensive? Legal fees for lodgment and removal is RM450.00. Lodgment fees ought to be RM300 while withdrawal ought to be RM70.00. Got a quote to back this up or did your lawyer just verbally inform you?

Hi lawyer...I am a newbie to property investment...I just bought a apartment unit 168k,leasehold..strata title not out yet..so...one of the lawyer quote me on below legal fee..is it reasonable?how to calculate one?SPA –RM4,810.36 2. Loan –RM3,077.82.
Hope someone could advise me on this.many thanks.

The answer to your questions depend on what is stated in the SPA. If it states that VP shall only be handed xx working days from the date of receipt of BPP together with LPI, then you're stuck.

If you lawyer is saying that the delay is from vend's side, then write to vend and show it to him. If there is no delay, hence no LPI payable from you, once xx working days for him to hand over VP is over, then it is him who has to pay LPI to you.

If he is still stubborn, then you need to apply for an injunction to compel him to surrender VP to you and pay LPI.

VP is done from vendor to purchaser. Usual custom is to hand over keys. Other methods (usually for vendors who are based overseas) would be to authorise purc to collect keys from the developer. The only situation where the purc can 'break in' via a locksmith and install new locks would be with the express consent of the vendor. Otherwise, the purc cannot forcefully take VP of the premises, even though legally he is the owner.

Unless there is something else provided for the in SPA, i.e. the SPA allows the purc to forcefully take VP on his own accord. But I have never come across of such clause. What I'm trying to say is that there's nothing wrong to insert such a clause. An SPA can include any term, as long as parties agree. Am talking about subsale, of course.

Use the calculator at the first page to calculate your fees. Then you can compare with the many samples in v1 of this thread.

Hi dariofoo,my snp stated "The Vendor shall deliver vacant possession of the said Property to the Purchaser within three (3) working days from the Completion Date (the date in which vacant possession is delivered by the Vendor shall hereinafter be called “the Delivery Date”) failing which the Vendor shall pay the Purchaser liquidated damages to be calculated from day to day at the rate of Eight per centum (8%) per annum of the total purchase price from the Completion Date up to the Delivery Date."

is it no mention LPI on my snp?is it i safe from this case?

hi sifu,

need your advice, pls...

I was offered to take up a new launched condo (from those loan rejected units) if I'm able to pay 2nd 10% of progressive payment of piling completion. Means that I only take up 80% loan as developer is giving 10% discount on down payment to all units.

However the 2nd 10% progressive payment to be paid upon S&P signing and it's not refundable in case my loan application is rejected.

What I need to know from you all is:

- Is it normal to sign S&P and pay the 2nd 10% before loan approval?
- Does developer has right to forfeit the 2nd 10% payment if my loan is rejected?

Hi dariofoo,

I need some advise on the sales process of my current situation.
Just last week, I meet my sales agent and been paying for a sum of deposit to buy a new residence still under develop.
I had paid 1% deposit and sign for the temporary agreement, and this week the developer said that all order had been cancelled (including me there's around 10ppl in the list)
and the reason being give by them is the agent doesn't give any response and they didn't receive any deposit while the agent told me they had pass the deposit to them but they can't give any evidence beside the email conversation between developer.
The question is now developer deny is their fault and the agent is denied their fault also and now my load is approved and the problem is
1. should i got to sign the LO?
2. developer claim that the unit had been cancelled and sold while the agent said they has no fault and they want to file the case to tribunal pembeli rumah, so what can i do or how should i do?

You need to check what the definition of Completion Date is.

1. Never of such arrangement before.
2. Not normally, but if you sign and agree, then how? Of course you are bound by it.

1. The LO from the bank? For a property which you have not secured yet? What's the point?
2, Appoint a lawyer and get further advice.

Need some advice here. What if i paid the 2% deposit to a property agent and then only find out the following situations, am i still entitle for the refund of full amount or partial amount:

Case 1: Bank evaluated value is lower than what being told by the agent.
Case 2: Bank evaluated value is the same or higher than the purchase price. But i only got 80% loan instead of 90% loan as expected

hI dariofoo, I think it is ok right? I have done a case before, I know I am obtaining LTV 70%, the 1st 30% was paid by me to the developer, I only get my loan approved after I settle the 2nd 10%, everything seems alright. Correct me if I am wrong

dariofoo, thanks for your advice.

I think I will not proceed with the purchase if they insist the 2nd 10% is not refundable due to loan rejection. it's unfair to buyer.

I found out the scenario more clear now, the unit that I bought is from the previous buyer which cancelled the order. The agent get a verbal confirmation with developer that they will cancelled the order (he find back the previous buyer to do a proper cancellation in b/w) and pass the offer to me. I had make my deposit payment to agent and when agent need to pass the money to developer. The developer refuse to accept the money and claim that the unit had sold.
Now my agent told me the unit had been cancelled by developer and advise me to bring this issue to KPKT. Actually whose fault and should I cancelled my order or just wait for KPKT judge?