Jan 15 2016, 11:06 AM
QUOTE(yeohsheng @ Jan 6 2016, 11:25 AM)
Hi all,
my dad is buying a property and is in the middle of signing the SPA. however, in the SPA, it stated that we pay 3% to the lawyer firm for RPGT and the rest of 6% to the seller. i wonder is this a normal practice? My dad is a very traditional people which has stubborn head. according to my dad, he should paying all 9% to the seller only as the RPGT doesn't concern to us.
so my question is,
1. does the 3% to lawyer firm and 6% to seller is normal practice?
2. or we can choose to pay all 9% to the seller? will there any sub-sequences?
It is the law that a sum equivalent to 3% from the Purchase Price is to be paid upfront to LHDN being the RPGT.my dad is buying a property and is in the middle of signing the SPA. however, in the SPA, it stated that we pay 3% to the lawyer firm for RPGT and the rest of 6% to the seller. i wonder is this a normal practice? My dad is a very traditional people which has stubborn head. according to my dad, he should paying all 9% to the seller only as the RPGT doesn't concern to us.
so my question is,
1. does the 3% to lawyer firm and 6% to seller is normal practice?
2. or we can choose to pay all 9% to the seller? will there any sub-sequences?
Whether the entire 9% is written in favor of the seller or in 3%/6% ratio shouldn't really be much of a concern. If your dad insist that he will only issue a cheque for 9% solely made in favor of the vendor then inform the solicitor to only release the 9% cheque to the vendor in simultaneous exchange of the vendor's cheque for the sum of 3% made in favor of the solicitors firm.
problem solved.
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