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.

Stamp duty upon MOT/DOA in SPA processing?

1. Best if you ask the bankers in the appropriate thread.
2. Yes. 0.5% of loan sum - less another 20% from that sum if Islamic loan.
3. Yes, unless you're purchasing by way of cash. 
4. It is easier is is always recommended. No questions on discounts are allowed in this thread. Please adher to the rules and regulations of this thread at page 1.
5. You can use the calculator at the first page to check the professional fees. Add in 6%. For disbursements there are many samples and comments by me in v1 of this thread. Do take a look there.