Subsale refund of unutilized sinking fund
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 Jul 24 2018, 06:44 AM
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#1
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Senior Member
1,199 posts Joined: Oct 2006 From: Kuala Lumpur  
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QUOTE(animegod @ Jul 23 2018, 10:20 PM) Therefore, do buyer need to refund to seller for unutilized sinking fund for the past few years? As this cost were incurred prior to vacant possession and falls under payment of outgoings, and therefore apportioned as to the date of vc; which is for the latest month only.  further, trying to identify the quantum of unutilized sinking fund for one parcel of unit within a strata development is a whole level of challenge right there. |
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Jul 24 2018, 02:18 PM
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#2
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Senior Member
1,199 posts Joined: Oct 2006 From: Kuala Lumpur
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QUOTE(nookie188 @ Jul 24 2018, 08:19 AM) It is required under the law that the unutilized sinking fund has to be refunded to the vendor - so its not a matter of "need " .. not required to refund.Based on my experience the purchaser's lawyer writes to the JMB/MC and request for the amount of unutilized sinking fund to be calculated and then the amount is refunded by the purchaser at VP. if vendor paid excess sinking fund in advance then that portion have to return. not for the amounts that been paid and 'unused' throughout the vendor's period of ownership |
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Jul 26 2018, 12:29 PM
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#3
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Senior Member
1,199 posts Joined: Oct 2006 From: Kuala Lumpur
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QUOTE(nookie188 @ Jul 26 2018, 10:20 AM) Actually we were referring to the refund of unutilized sinking fund paid by seller at the time when he sells the property... Scenario 1It is not a refund by JMB/MC but actually a reimbursement of unutilized sinking fund by BUYER.. I only found out about this when my fren sold her property and the buyer's lawyer ( she was not represented) refunded her the sinking fund (not specified in the SPA) under apportionment of expenses... It was not much less than 2k for a 3 yr old prop Many people are not even aware that this is even possible.. lets say seller owned the property in 2010 and sells in 2018. over the course of 8 years he has paid sinking fund to management in total of RM20k. when he sold the property, he/management calculates that his portion of 'unutilized' sinking fund amounts to rm5k. He can't claim from the buyer the RM5k as unutilized sinking fund attached to his property, which will be transferred to the account of the new owner logic of it is the sinking fund is only used when part of the common property required to be replaced. it may be used in the future, as at the time of the subsale transfer, the buyer doesn't get a 'brand new' property & common area. he gets it 'as-is', and it's up to the JMB/MC to decide when to use the sinking fund. the defects / wear and tear happens through time, thus i'm of the opinion that there's no 'unutilized' sinking fund for cases like this. Scenario 2 Owner paid whole year sinking fund for 2018. the completion of his subsale to buyer was in June 2018. the advance sinking fund paid from july-dec 2018 shall be refunded by the buyer to the seller. For this scenario, it's perfectly normal. |
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