hi, is this trend ok?
my grandpa selling their home, but this potential buyer dont have enough money to cover the 10% initial payment from the total selling price.. he say that after get snp he will withdraw the 10% and give it ...

is it an ok way to sell?

any counter safety measure can be taken?

the buyer look honest people btw , trying to help him to buy the property in the same time need to protect my lovely old grandpa

make an agreement and sign off.
then cop suruhanjay to make the agreement valid in court.


nowdays, talking is cheap. dont trust anybody.

after get snp and then pay?
what happens after get snp and then cannot pay?
big headache there.

btw how much is the down payment needed?
if the buyer cannot afford then no need sell la.

This post has been edited by COOLPINK: Oct 22 2018, 10:38 AM

Did not appoint an agent? Direct sales?

Usually if there have agent, the sales purchase form can be use to apply withdrawal from epf if not mistaken.

LOL after get snp means he own the house legally d lor.

Normal procedure
Get earnest deposit (range from 1~3%), S&P signed take 10%, house delivered 100% collected.

At least get some earnest deposit before sign anything to show the sincerity of the deal, and draft the S&P clearly stated earnest deposit will be forfeited and penalty of 10% is imposed if money cannot be paid within x weeks/months time and S&P is deemed null and void after the time period.

But if buyer indeed is not able to fork out the deposit (even the earnest deposit) to buy, highly loan may not be approved as well...

if i give spa to EPF, once i got the money i cancel the deal

at least must pay 2-3% booking fee first to 'secure' the unit. inform ur lawyer to draft the SPA to reflect as such.

if he want to withdraw epf to pay deposit, he must take the stamped SPA + loan letter offer as part of the documentations needed to withdraw epf.

if after he withdraw and cancel, it's deemed as "purchaser's breach of SPA" and you are entitled to sue him for 10% of the purchase price as liquidated damages (usually SPA will have this clause, so make sure it's stated in there).

wrong. S&P is just a document to spell out the sale and purchase transaction.

"full purchase price has to be paid to the seller's lawyer as stakeholder" is usually the point where beneficial ownership is transferred.

legal ('paper') ownership does not transfer via S&P.

it's either under

1) Memorandum of Transfer "MOT" (Borang 14A) - for properties with title issued; or

2) Deed of Assignment "DOA" - for properties without title issued yet.

Dont bother lah if even 10% also cant pay up sure got alot of prob later.

And if the buyer cancel u gonna waste your time and money to chase they money that might not even able to get.. u can only ask lawyer to issue LOD no?
And then your lawyer fees who is going to pay for it? charge to buyer as well?

i hope they can just get 10% and loan approved ..
once that done and the ball start rolling.. seller and buyer can go separate way already

usually find out.. they dont have the cash to buy but can commit on monthly pymt to bank...

Good info, thanks for sharing

atleast ask for 1% as commitment fees cum earnest deposit