Hi Dario,

I would like to seek your inputs regarding the following as this is my first time as a buyer.

As I am not able to purchase a property directly under my name until next year because a certain requirement needs to be fulfilled till then - this has no relation to my financial history at all as I have no past/present/outstanding loan or debts to my name. So I intend to purchase the property under my mother's name and when the right time comes along, the property will be transferred to my name under the love and affection transaction. However, I was told by someone who had sought the opinion of a lawyer regarding this issue. Please clarify this.

1. If owner still under your mother name, you are the borrower. MOT still can transfer to you (can treat as love and affection) but it can be done once SPA done. By the time when it can be transfer, it need to get approval from financial institute and it will cost higher because lawyer need to do MOT transfer charges.

2. Owner & MOT title is your mother name, you are the borrower. Just do a will for your mother, it cost cheaper.

In addition, I am interested in a property and if the deal is concluded with the owner (no agent involved), I would have to draft an agreement for both parties to sign, especially with the clause for earnest deposit to be refunded should the loan not be approved in the event. I managed to get a Letter of Intent for purchase of a property from a source and the terms and conditions in it seems vague and ambiguous, so I am not sure if this is acceptable to serve as an agreement for both parties to sign. I am unable to upload the LOI here as it is difficult to upload via my iPad. May I email you the LOI for you to take a look.

I would appreciate your kind inputs in this.

Thank you!

This post has been edited by S'aimer: Aug 11 2012, 12:35 PM

Hi Dario,

To put it simply , the 2 statements mentioned was infered to me by a home loan agent when i made enquiries regarding home loan packages. She mentioned that if the Owner is my mother and i am the borrower, which would be considered a third party financing. BUT the legal problem was regarding the MOT and how it would affect the loan package overall. I had asked her if having a MOT (love and affection transaction) done, will affect the loan issue or not because i understand that for transfer of property to another party from a party normally will require a new SPA, loan agreement etc and legal charges will be incurred again. Her reply was based on the lawyer's advice for the MOT.

So i am confused as to whether a MOT or a will is better for the change of ownership without changing the SPA etc and incurring alot of legal charges?

About my situation in being unable to purchase the property directly under my name yet, it is because i have another property outside of malaysia so before I can sell it off etc, the legal requirement for owning the overseas property must be fulfilled first. This is why i am enquiring regarding the MOT part. About the letter of intent/offer, i am dealing with the owner directly and no agent involved so i would greatly appreciate what other terms should be included in the letter of intent/offer? For example, besides than the clause for earnest deposit to be refunded in the event of non approval of loan, can i also include the term 'or if i am unable to obtain max 90% loan' to the clause?

Thank you!



This post has been edited by S'aimer: Aug 13 2012, 09:26 PM

Hi Dario,

I see! Thank you for your clarification. I understand better now for the MOT.

I prefer not to say it here, my apologies.

This post has been edited by S'aimer: Aug 16 2012, 02:53 AM