Dear All,

One year ago, I was keen on purchasing one property, which is a flat.

That time, due to house title issue (house title swapped with another unit on the same floor), I couldn't secure a bank loan. There was an option to buy it with cash, but unfortunately the selling price of RM86,000 is out of my reach.

We rented the place from the house owner at a rate of RM400/month, with the option of purchasing the property at RM86,000 once the title issue is solved.

Recently, the owner told me that they are well on track to solve the title issue (should be settled within few months), however, he said the valuer values his flat at RM90,000 currently, thus he decided to increase the selling price to RM88,000.

At first I was quite angry since he did not keep his promise to sell the flat to us at RM86,000 (i.e. suka suka increase price), but after calming down, I think that extra RM2,000 is reasonable.

My current concern is, how can I ensure that he won't suka suka increase the price again? The RM88,000, like previously, is just by verbal and no black and white.

Do I have to prepare some agreement forms stating the agreed selling price, and ask him to sign for it? Do I have to do this in a lawyer firm? What kind of agreement should I use?

He also asked to pay RM1,000 deposit to show the sincerity in the purchase, which is fine for me. I plan to include that into the agreement too. Meaning if he does not keep his promise again, he will need to refund me 2x the deposit or something like that. Is it possible?

Sorry for the long read and thanks in advance for your expert advice.

prepare an offer to purchase.

usually this one agent will prepare if u go thru agent.

if there's no agent, engage a lawyer firm and ask them to prepare for you this offer to purchase pending the execution of SPA.

better engage a lawyer..everything must hv black & white nowadays..

Hi hanhanhan, thanks for the advice! Yup there's no agent involved, most likely need to get service from lawyer firm dy.

Thanks mafa2801! True, nowadays all agreement must be recorded to avoid future argument. My mistake for not doing the agreement earlier with the house owner.

even among relatives also need to have B&W..when it comes to "$$$" anything could happened..cheers

What title problem is there? If the title is not out, you can buy the house first you know. And you can continue renting until the house belongs to you. It is called 'legal possession'.

Engage a lawyer for it. Make sure you choose the lawyer yourself.

This post has been edited by firefly3x: Apr 3 2017, 03:28 PM

The flat that I plan to buy, it's title was "terbalik" with another unit on the same floor.

Meaning one floor has 5 flats, the flat that I plan to buy is No.14 (2nd unit from left), the title is written No.14, but according to the floor drawing, it should be No.18.

Actual case: All number counted from left to right,
Inside drawing: It counts in zig zag, meaning ground floor and 2nd floor counted from left to right, 1st floor and 3rd floor counted from right to left.

Now they are engaging jurukur tanah and lawyers to settle this issue.

Thanks for the advice. Just called a lawyer and will meet with him soon to discuss about the agreement with current flat owner.

oh god. it'll take minimum half year to get it settled. hate it when errors like this happens.

Hahaha yup I hate it too. Hopefully it won't take that long. We all already realized this problem since a year ago, but only recently there are some updates from the jurukur tanah and lawyers.

Okay you mean title particular is incorrect. You can stil sign SPA while waiting for the title to be rectified, at least u can tie down the seller so he does not run away or change the price. Hope this helps.

Is it risky to sign the SPA first? Because my concern is bank will not approve my loan due to title is not correct.

usually standard SPA is 3 months to complete.

ask ur lawyer put the 3 months start to count from the date the lawyer receive the rectified title.

so u just fork out 10% first, wait until title rectified, then terus go apply loan.

You can apply loan first. No point signing SPA first, its a risk if suddenly u din get the loan. If the title is rectified, you can apply for supplementary letter offer from Bank to rectify the title particulars.

ask ur lawyer to draft a booking form.

use that booking form to apply loan.