Property is more than 5 years so there is no real property gains tax payable, There will not be any tax imposition on you even if your profit is a million ringgit however please make sure the owner is an individual, company/corporate entity is not entitled to this tax exemption.

as long as there is no element of fraud then everything is fine. most purchasers want the sale and purchase agreement to be priced at RM1.2 million just to get a 90% loan from that then they require the vendor to refund them the balance.

this effectively means the actual purchase price is RM1.05 million and they want to defraud the bank by telling that the purchase price is RM1.2 million. essentially, taking more money out.

this is illegal and basically put both the vendor and the purchaser in a position of being prosecuted.

there is no benefit in the long run, only in the short run whereby the purchaser/borrower gets to take out more money to use. Sort of like a personal loan borrowing but with the benefits of a housing loan. Not everyone is entitled to get a personal loan for such a big amount of money.

If the purchaser/borrower is willing to do that, clearly he is not concerned about the interest charged. What the purchaser/borrower wanted is immediate money.

Any additional monies paid by the Bank will be misappropriated by the purchaser/borrower. Although technically speaking the purchaser/borrower will still pay the money back to the Bank but it is the circumstances which induces the Bank to lend more money then the Bank would have if the actual facts is furnished to the Bank. This is fraud.

It is actually not uncommon for parties to conclude a deal like this. Desperate vendors and greedy purchasers/borrowers, that's all it takes and yes, 100% of the time, the parties know what they are signing up for.