Hi all,

Recently my friend is buying a subsale house from somebody. However, he was informed to sign the Agreement to Purchase Property. Is this normal? Appreciate if somebody can roughly advise on the purchase of subsale house for reference.

Content of Agreement is:
-Within 14 days to apply for bank loan
-1st of May to execute the purchase
-To pay 10% bla bla bla

Sorry the information given is not that clear, this is what I have been told. Appreciate your inputs.

yes. u'll need to sign an offer/agreement to purchase and pay a booking fee (usually 2% of the purchase price)

with that agreement to purchase, the purchaser can apply for loan.

This is very informative. Thanks!!

Just make sure the clause if you fail to obtain loan, the booking fees will be fully refunded to you. If not added, will be forfeited.

Thanks for reminding I will inform my friend accordingly.

I just having the same situation also but abit different

here is my scenario:

(a) Submit loan application first.
(b) Loan approved but not yet sign agreement to purchase
© Rush to sign the agreement to purchase and placing rm2k booking fee.
(d) Now checking the letter of offer from bank.

I have some questions here and would like to seek your guys kind advice:

(a) the loan approved have a profit spread of 1.03% + BR = 4.8%
Is 1.03% fixed for all client for the particular bank? or it is up to the bank to offer lower profit spread for whichever client the bank think they deserved?

(b) When checking the bank letter offer, which is the most important part that i should pay attention?
Most important= the one that people always overlook..

© what is the next step i shall take after i sign the bank offer letter? Shall i engage the legal firm to execute the SPA agreement? or i engage the valuer first?

I got 2 days before i sign the offer letter.. Appreciate your guys kind 2 cents..

Please refer to comments in bold

(a) Submit loan application first. (im curious how to apply for loan without having any agreement to purchase)
(b) Loan approved but not yet sign agreement to purchase
© Rush to sign the agreement to purchase and placing rm2k booking fee.
(d) Now checking the letter of offer from bank.

I have some questions here and would like to seek your guys kind advice:

(a) the loan approved have a profit spread of 1.03% + BR = 4.8%
Is 1.03% fixed for all client for the particular bank? or it is up to the bank to offer lower profit spread for whichever client the bank think they deserved? "consider" fixed unless you have many loans with the bank.

(b) When checking the bank letter offer, which is the most important part that i should pay attention?
Most important= the one that people always overlook..
loan tenure, interest rate, lock in period, whether it's flexi loan or not, any charges for withdrawal of money, what's the early repayment like (eg iinm islamic bank u can reduce the quantum of the monthly repayment if you dump in lump sum to reduce the loan interest but not to finish paying the loan earlier)


© what is the next step i shall take after i sign the bank offer letter? Shall i engage the legal firm to execute the SPA agreement? or i engage the valuer first?
engage legal firm to sign SPA and loan agreement. usually bank will use their own panel valuer. u just pay the fees.

Thanks for your comments.

(a) yes it is dangerous since anytime the seller may have engage other buyer. However the bank have all the details of the house already and i only apply to one bank.

(b) consider "fixed"= bank can offer lower profit spread to other client right?

yes the bank is at its own discretion to offer more favorable interest rates to existing /corporate clients.

usually for pinjam loan to buy house (i think they call it retail loan) the rates are rather 'fixed' and not much room to nego. u can try to ask ur banker to appeal for u though.

Already appeal for the increase of amount of loan..anyway thanks alot for your feedback..

BTW is it compulsory to get the insurance for the house besides MRTA?
The houseowner policy which cover loss or damage by fire, explosion, flood etc. (insures the building of the house)