Hi All,

I'll like to seek information regards to purchasing a property under market value?

To cut story short, I'm purchase a sub sale house from a close family friend of mine at bargained price, his asking for RM80K which is basically the remaining balance owned to the bank.

Under such circumstance, can the seller (my friend) part off the property at 1/3 of the market value to me? Does the bank have any say in which owner of the property cannot let go the property for such a low price? Considering that i'm intending to get loan for exactly rm80K for the house?

Does a valuer need to be engage under bank order to provide appraisal on the property value?

Can someone kindly enlighten me on matter

Best Regards
Luke

Unlikely

Why not ? Willing buyer willing seller, no conflict of interest.

I see only issue is when the SPA lawyer send to stamp office to value the market value to determine stamp duty payable, they will value the property at market value of RM240K, so U will have to pay stamp duty on RM240K(1% x 100,000 + 2% x 140,000 = RM3,800), which is a lot higher if property is valued at RM80,000 (1% x 80,000-RM800).

but rpgt rules apply, he try n sell it early sure mati.

Otoh, willing seller rule should apply kua. I don't believe the bank cares if its undervalued. I mean you are securing your smaller loan against a more valuable asset.
In fact if you can remortgage ur existing property to a better raate/term, and get 80k cash, buy out right may be a good idea.

@FerrariST
Can I bid 81k?

Both parties can transact for whatever value they want. If your friend wants to tell you the house for RM1.00 also no problem but you need to pay to the stamping office the full stamp duty based on the assessed market value, not the value in which it is transacted.

Banks would love to borrow you money because you are only taking RM80,000.00 when the house could have a market value of RM120,000.00 (let's just say).

Your Bank will appoint their own valuer so you don't need to bother about that, you just need to pay the valuer the fees (if it is not financed into your loan).

Better dont if you are at penang.

Should be no issue even transact lower than market price.