hi to all lowyat forumer, i wanna ask if i can sign S&P 1st before loan approval, actually i got bank approved my loan, but the interest was high (4.95%) so i am waiting other bank to approve, while the property owner rush me to sign S&P 1st because she is going back kedah and will not free.. my question is can i request lawyer for S&P before i choose my loan? pls help

Yes

Yes..but then u have to agree to whatever interest bank charge u.

Since your Loan approved, must sign SPA 1st..

haha i haven sign the offer letter yet, because the interest is high, i'm waiting other bank offer, but the owner rush me to sign SPA... i can sign 1st right? then only i sign for offer letter to whichever bank offer the lower rate.

No need to rush sign S&P.If she is keen selling to you,appointed lawyer will handle the sigining S&P

rdy to lose .05 of property price if void....better than lo penalty

Hi, since there's bank approved yr loan, means you cant cancel your purchase already right? As per normal offer to purchase form. So, its up to you to sign the SnP first or not. SIGNING the SnP requires you to pay the balance deposit and also legal fees together with stamp duty.

Yes you can. Some customers approach me with the same predicament, where I would help them getting better rates. However, keep in mind that typically there is a 90 + 30 days from the date of signing of the S&P to the full disbursement of the remaining purchase price, so if you delay too much, your bank, loan-agreement lawyer, and other parties may not make it in time for the full disbursement.

Then you would get to pay the daily-rest penalty

A note though, depending on the type of the house and the loans that you would be getting like a government loan, or if the property is encumbered with a government loan, it is possible that the 90 + 30 days deadline to start only:

- upon approval by the government loan processing office (because they are so slow)
- upon consent by the state for transfer of rights (for leasehold property)

You need a lawyer who is experienced in the conveyancing industry to make sure that they are protecting your interests.

There are ways to get out of that. A person could apply from multiple banks, 1 would be approved (with horrible terms and conditions), while the other 2 gets rejected. And they use the rejection letter from the other 2 to prove that their loans have been rejected and refuse to proceed with the purchase.

This post has been edited by wild_card_my: Jul 1 2015, 11:36 PM

Let me have a dig at this...

If you sign the SPA without securing your loan:-
From developer, you will be subject to progressive billing for each stages of the project + late payment interest.

Subsale, you have to get your loan approved within 3 months, failing which u get charge late penalty interest on the balance purchase price.

This is correct I agree with your points.

Btw are you like 19 years old...? based on your nickname. Thats very young. Youth is good.

Lol... Would be great if I can have all my youthfulness back.

This post has been edited by aurora97: Jul 2 2015, 08:43 AM

definately can.

Legal fees actually included posting the S&P to the owner for signature.
im sure lawyer will charge u regardless of the owner staying at KL or even Perlis.

wow....never thought of that. thanks for the trick bro. all these while i thought as long as 1 approve die2 have to proceed the purchase

Thats why some agents insist on getting as many rejection letters as possible.