Hi All,

Would like to get your knowledge sharing for the following items:

For example, one is planning to buy a commercial title (under HDA) service apartment (2nd property) which cost about RM350k in KL area, the service apartment is still under construction stage. He will be taking 90% of loan from a local bank.

Can you advice how the processes looks like? In my mind, the process is like below:
1. Pay booking fee and sign the booking form
2. Take booking form and apply for loan
3. Accept loan offer and sign the loan offer
4. Take the loan offer and pay the remaining downpayment
5. Sign loan agreement and sign SNP
6. After construction completed and when strata title is ready, pay the MOT/MOC
But when do we need to approach a lawyer? after pay the booking?

And, how about the related fees as per following breakdown?
1. Legal fee for "Sales and Purchase Agreement (SNP)"
2. Legal fee for "Loan Agreement (LA)"
3. The stamp duty for SNP
4. The stamp duty for LA?
5. Memorandum of Transfer (MOT)
6. Memorandum of Charge (MOC)
7. Legal fee for MOT
8. Legal fee for MOC
9. Disbursement fees
10. Any other related fees?

I do understand that one maybe able to get fees 1-4 calculated from those online calculator, but I got confused these items with MOT. In addition, I heard that if the same lawyer was used for the MOT/MOC, the charges will be cheaper, at about 25% of the legal fees for SNP and LA.

Thanks a lot for your sharing !

Your process is correct, but don't forget you will need to pay interest during the construction phase.

If you are buying from a developer, normally they already have a panel lawyer and panel banks, which also have their panel lawyers. This law firm will also normally handle MOT/MOC. So you do not need to find your own lawyer. You will only have to meet the lawyers when signing all the agreements. For signing loan offer you only meet your banker.

You got all the fees unless you want to include cukai pintu, cukai tanah, deposit for TNB and JBA. But all these will be after VP(handover of keys)

This post has been edited by JianNinety: Apr 15 2016, 10:41 AM

Thanks! Any idea about the fees amount? Am planning to buy one soon..

RM350k in KL area??? May I know which under con is this?

Ayuman Suites Gombak.

Folks, I have a few questions related to this topic:

1. Are there any specific risks to buying a commercial title condo (@ serviced apartment) due to it not being under HDA ?
2. Is it possible for a commercial title condo to be under HDA (I remember seeing an ad online where the agent stated "commercial title but under HDA" - not sure if this is true.
3. I googled online and based on this article below, it seems that HDA coverage only matters if the property is under construction. What if I'm looking to purchase a subsale condo with commercial title ? - any potential issues to be wary off ?
http://propertyinsight.com.my/blog/buying-hda-properties/

Any advice is appreciated

1. No issue, when you apply loan it will fall under commercial property rate
2. Yes, then you can apply under residential loan
3. Only applies to undercon, if competed will fall as commercial property

Hey thanks for your responses.

Any idea what would be the estimated difference in interest rates between a residential and a commercial title condo ?

Assuming the same criteria - 30 year loan, loan amount 500k etc.

Commercial property you can max loan about 85% only

Tenure is also shorter from 25 - 30 years depending on the bank.

Interest rate is slightly higher at 4.4% onward whereas residential is 4.3% lowest.

Thanks for taking the time to explain, I wasn't aware of the impact to loan tenure and interest rates. (Only knew about the higher utility tariffs).

No problem

Hello guys,


May I know when to pay these fees when purchase an under construction Condo from developer??
Kindly correct me if I am wrong

1. Legal fee for "Sales and Purchase Agreement (SNP)" - During sign S&A
2. Legal fee for "Loan Agreement (LA)" - During sign S&A
3. The stamp duty for SNP - During sign S&A
4. The stamp duty for LA? - During sign S&A
5. Memorandum of Transfer (MOT) - During get key from developer
6. Memorandum of Charge (MOC) - During get key from developer
7. Legal fee for MOT - During get key from developer
8. Legal fee for MOC - During get key from developer
9. Disbursement fees