Your point is noted. Most cases under declare the transacted price (means price written in snp) is not likely to happen. Vendor will have lost or risk his right to get the actual payment in full (assuming both vendor and purchaser has side agreement on the under declare transacted amount). And the purchaser will bot want to be losing side as if he agree for declarin lower transacted price now, he will have to pay a much higher rpgt if he would want to sell the property again wihin the next 5yrs.

Bro,

Please refer to your post 3 on page 1. I find your relate the rpgt with the property valuer findings. Thats why i want to make clear to the reader here. I'm sure you aware property value duty.

On the lhdn reserved rights to investigate your transaction i'm not sure. But they can always use clause 25 on act 1976 if they smell or suspected something fishy.

I apology if i made or cause any misunderstand. We just want to shared what we aware here so other reader will be benefit from reading it.

Chief, I hv to correct yr above sentence, in normal circumstances, >90% can't afford (or not willing) to fork up so much cash to buy property.
Imagine a property worth RM1,0 mil, if both agree to settle at RM500K, then the purchaser needs to come out :-
RM600K cash (90% loan) to buy
RM700K cash (70% loan) to buy

In order to under declare, a few conditions need to be fulfilled:-
1. Vendor willing to take the risk
2. Purchaser willing to take the risk
3. Purchaser's / vendor's solicitors encourage this arrangement, normally purchaser will seek advice fr lawyer and most lawyer will discourage it
4. Buyer wants to save on legal and stamping fees (& a little bit of MOT)
5. Purchaser has extra cash as mentioned above
6. Purchaser has extra cash but willing to proceed with this arrangement
i. Like myself, I hv spared a lot of cash with me now but I dun want to spend all the cash in a single transaction, I would rather find ways to secure as much loan as possible to buy more properties, unlike old days, many buyers buy for own stay only, but nowadays we find tat many purchasers are trying to reserve more CASH to invest more properties
ii. Buy cheap now, sell later within 5 yrs will kena higher amt of tax (as gunh claimed)
iii. The risk of being cheated by seller, lawyer will not handle this type of "special arrangement", for those undeclared amount is going to be settled between both vendor and purchaser outside the lawyer firm, take the RM1.0 mil example :-
- Shall the Purcahser settle 500K cash prior to the signing of SPA? (Purchaser not willing)
- Shall the Purchaser settle 500K cash after the signing of SPA? (vendor not willing)

In my experience being an agent, if there are 100 cases tat the vendor willing to under declare the price, only <3% of the purchasers willing / able to comply / accept. It is not easy to do

My 2 bakuli

This post has been edited by UFO-ET: Apr 6 2014, 10:58 AM

Bro...... Whatever pointers u hav raised above, I'm fully aware.....
However, u have to read this sentence as a whole...
A simple logic, if the authority MUST accept whatever we stated in SPA transacted price, i think there will be lots of ppl already underdeclare the transacting price to avoid RPGT.....

I know
The problem is with the purchaser, not the vendor
If it is not illegal, I think majority of buyers can't afford too

This post has been edited by UFO-ET: Apr 6 2014, 11:13 AM

Your acknowledgement is appreciated.
On the valuer statement, I may not hav explain full explanation.... However, LHDN still has "relation" to valuers...... It may not be directly linked to them, but they would still at all time aware of prop value in order to spot out any under declare transaction..... U can't fully cut away ties between them......

If one can save "this much amt of money" legally without problem...... U'll kno the full meaning of "If there is a will there is a way"...... And the outcome is definitely shocking.....

This post has been edited by AppreciativeMan: Apr 6 2014, 11:21 AM