Scenario

1) A sell house to B, didnt go through developer/agency. Deal direct but go through proper lawyer to do SNP.

2) A wants 20k in cash from B upon signing of SNP (this is separate from the 30K downpayment), while waiting for loan to release by bank.

3) example, SNP RM330k. Loan RM300k. A wants 20k, then bank loan release 300K to A. A will give a cheque to lawyer for this 20K while waiting for loan reimburse. once reimburse, B will bank in this 20k cheque to get back to 20K advance.


questions is

How risky is it to B? if lets say A cancel the cheque for the 20k when loan reimburse, will lawyer side able to do anything? or its solely between seller and buyer?

If after signing SNP, A gets the 20k cash, does A still got any ways to cancel the SNP and pull out from the deal + run away with 20k?

This post has been edited by pisces88: Nov 14 2019, 01:03 AM

I think
the agreement contract document from the lawyer would have stated selling price RM320k
initial payment RM20k.....pass to lawyer for transaction handling
balance would be from bank loan

If B cancel the cheque later, A goto see the lawyer
If A run away after taking the cheque.......the agreement had been signed with the lawyer and document processed

the selling price is 330k.

30k is deposit which lawyer holds.

20k is cash which seller requested, cos need to use money urgently.


so total 30+20k from buyer given to lawyer, which lawyer will give all to seller after he sign SNP.

if this scenario risky?

unless the lawyer abscond or in cohort with the buyer

Rogue lawyers' names struck off the roll, says Malaysian Bar
https://www.nst.com.my/news/crime-courts/20...s-malaysian-bar

also better not use cash....banker cheque is better (have transaction record)

This post has been edited by MUM: Nov 14 2019, 01:10 AM

In a negotiated snp contract, the terms of payment can be varied. Is is NOT fixed at 10% on initial and 90% thereafter.

If the seller wants a higher down, eg 20%, it can also be done with the agreement of buyer.... 20:80, or 30:70 or whatever agreed.

Do it the formal way so that everything is stated clearly on the Snp.

Your lawyer should be able to advise you.

This post has been edited by mini orchard: Nov 14 2019, 06:46 AM

why do you want to complicate yourself?

it would be simple if you just pay him rm50k deposit, just state in the agreement.

if bank disburses extra money: it should be returned back to you by the lawyer.

do not trust the seller, do not trust and simply give rm20k. do not think you can cash a cheque in the future. you might not get anything back in the future.
simple advice bro: do not ever trust the seller.

\agreed. this would be the best choice.
do not trust the seller/

any payment should just be handled by the lawyer. do not deal directly with the seller. the only person you need to deal with is the agent and the lawyer you appointed.

Seems like seller want to lower tax by asking 20K outside of SNP price.

Im not sure why u specifically mention didnt go thru developer. Is it new house (or strata title) or subsale with individual title??

I would say paying extra 20K is risky but it is the same for paying deposit also risky. Even go thru proper agent/lawyer still the money already given to seller.
If any issue happen the seller could refuse to return money and u cant do anything but issue letter of demand and go thru alot hassle. But it is possible to get back money thru court order.

No.

I think seller is not aware that he can request for a higher down. Did not seek legal advise.

Ohh now i understands... Seller want 20K advance and pay back after get money from bank.
U can ask lawyer to include the T&C in the agreement.

Usually bank will release the money into laywer's account as intermediate and money from there transfer to seller. So lawyer can hold the 20K and return it to u.

Just increase the deposit amount in snp.

No need other terms to complicate matters.

Take note ...

In the event that the deal is aborted by the buyer for whatever reasons, the seller can only fofeit 10% and the balance return to buyer.

This post has been edited by mini orchard: Nov 14 2019, 09:19 AM

How to increase the deposit while applying 90% loan?

Lawyer will auto calculate the amount deduct the paid deposit? and the balance amount give back to buyer?

How buyer want to pay extra but no cash?

If buyer can loan the 20k, i dont see any reason why cannot increase the deposit amount.

This post has been edited by mini orchard: Nov 14 2019, 09:45 AM

Thanks bro. I dont wan to trust seller also , so asking more opinion before speaking to seller n lawyer

Buyer B might be squeezed by seller A for demanding that extra 20k. Not that buyer willing to place extra money. Furthermore buyer B may need to get back the 20k as part of his/her renovation cost later.

We cannot speculate what is not mentioned. Advise is based on what ts posted.

Ts concern is to safeguard his 20k only.

'If' want to speculate, this thread can go to 100 pages.

This post has been edited by mini orchard: Nov 14 2019, 10:42 AM

My concern is the buyer end up cancel the deal and dont return the 20k cash / banker cheque. Then it will be troublesome to get it back, whether its through court or not..

If you are worried about the 20k, then you should also be worried on the 10%.

Even without the 20k, if the seller wants to cheat, he can also abort the deal after signing without returning the deposit.

Either way, you need to sue him for specific performance as stated in the snp.

If you worried too much about cheating, I dont think you will ever sell or buy anything.

Let your lawyer do the ground work to protect your interest.

This post has been edited by mini orchard: Nov 14 2019, 10:56 AM

Normally the property is caveat once entering Snp, so if seller doesn't return the earnest deposit, buyer has the right to caveat,. Once caveat, the property cannot be sold.

Every Snp has own risk of default, that's why lawyer always draft clause of forfeiture clause on earnest deposit.

Yes, correct.

That why snp has the 'specific petformance' clause to compel the seller MUST sell to the buyer.

You dont caveat only when seller defaults. Caveat is done IMMEDIATELY when snp signed. So the bold statement is unnecessary.

Caveat is on first come first serve basis. If an early buyer caveat ahead, then ts can kiss his deposit bye bye. That is why an experienced lawyer is important.

Dont slash his fee ... he may only earn from you once.

This post has been edited by mini orchard: Nov 14 2019, 01:12 PM

1. Why did the vendor want to do this? It's only usually done if it's thru agent/broker because the broker wants their cut first before loan disbursement.
2. The property still under loan or clean title?
3. After sign SNP cannot simply cancel cancel la bro, it's not a booking document, it's a legally binding contract.

BTW, you should just ask the (your) lawyer otherwise he makan duit kosong saja.

Yea correct.

Usually all will be executed simultaneously to the lawyer can file and submit for registration in the correct order.

Unless the lawyer is chapalang la.

Agent fee is payable upon signing of snp under the BOVEA guideline OR consent from local authority if is a lease property.

No. 2 is irelevant.

This post has been edited by mini orchard: Nov 14 2019, 01:20 PM

cheers

but wrong.

2 is not irrelevant.

On a charged property, loan is not disbursed to the vendor.

This post has been edited by Mikeshashimi: Nov 14 2019, 01:25 PM

Whether is loan or cash, final disbursement sum is always to the purchaser's lawyer and to be forwarded to the vendor's lawyer if he is represented.

This post has been edited by mini orchard: Nov 14 2019, 01:30 PM

Thanks for ur feedbacks, appreciate it.

Go ahead and buy if you like the property.

Get an experienced lawyer to advise you. Your worry is unnecessary.

Already mentioned caveat once entering Snp.
In normal situation when Snp collapsed, buyer needs to drop the caveat. Buyer cannot caveat once Snp collapsed, buyer can get sue if continue caveat without reason.

Get lawyer advice, don't just simply doing side deal with seller. Everything follow black and white Snp.
Don't pay cash directly to seller either.

What is your meaning of 'SNP COLLAPSED'

I merely state my mind answering your assumption too. Not come in here to speculate

Cheers....

The fact of the problem is on page 1. I dont think I made any assumption in answering replies. I cannot read ts mind but you did an assumption that ts wanted back the 20k for reno and squeezing ....blah blah.

TS didnt mentioned that he wanted bank the money for reno. TS is only concern that the seller will not return the money if something goes wrong.

This post has been edited by mini orchard: Nov 14 2019, 02:57 PM

I also have a question. Currently i am selling one of my house. The buyer not signing booking form and the buyer go engage lawyer to help him buy the property n he is trying to secure a 100% loan. He also did not pay me any booking fees too as he worried if his loan failed n i dont want to return his booking fees.

Anyway. I just told the agent let him go do whatever he wants but if he able to secure the 100% loan. Then i definately will collect 10% downpayment upon signing snp.

The agent already asked for my geran as the said his banker n lawyer needs that.

Is this weird?

You are right. The Buyer B also never mentioned he got no cash to pay extra.


Cheers....i just merely answer on this why buyer concern this.

You inform the buyer that you will sell the property to anyone who pays you first since you dont have any contractual document (booking form) with him. Treat this 'buyer' as non existence. You cannot be waiting for his answer while ignoring another potential buyer. You can also change your mind and not sell anymore. You can also change the price, but this not gentleman.

As for the 100% loan and 10% deposit, you are right.

As for the geran, is normal as bank wont process loan application without it. After all is just photocopy. He can also get it at land office but troublesome.

This post has been edited by mini orchard: Nov 14 2019, 03:15 PM

It is called "earnest deposit", to show sincerity in purchasing your property, instead of talk without essence.

Normally, you as seller impose a time frame for it, 2 weeks or 1 months time to sign the SNP (after receive the earnest deposit) to collect 10% downpayment., as you don't want to miss other buyer (if the current buyer doesn't proceed to buy).
Loan approval normally proceed quite fast nowadays if the buyer has the financial capability, or meet the loan requirement.

Please engage lawyer before accept any deposit (including earnest deposit), as it is always need to come with clauses, you don't want some clauses that are in favour, as sometimes SNP can drag too long, which is disadvantage to seller.

Yes, it is normal for seller to show the property title to buyer banker and lawyer to verify the property is indeed yours.
Buyer also scare of fake seller.

Ya. I know. No other buyer now except him. Previous 2 buyers failed at bank loan.

Currently tenanted. So no harm waiting. If he gets the loan then i sell. Else i just keep continue renting it out but pain in the axx when collectinh rental every month...

Landlord nightmare.

The last time I sold my property, the buyer pays me the earnest deposit in 2 instalments over 2 weeks. And is only 2.5k. During snp everything went on as normal.

Now I dont do long term rental anymore. I prefer vacation home business. Less headache. Upfront cash.

This post has been edited by mini orchard: Nov 14 2019, 05:08 PM

Sorry can I ask.

I recently faced such issue as well where as I bought a unit then later decided to upgrade to a bigger unit, I only paid booking fee. But now the previous unit lawyer send me an invoice of RM10k. Before I proceed to switch to bigger unit, I have double confirm with the SA only the additional cost and their reply is only RM1K, thats why I proceed with the booking for the new unit and had recently signed the new spa.

I have signed the cancellation agreement with the developer with their term. What should I do now

I was so shocked when I received this. Can you guys advise some approach to not pay this amount? Should I approach LHDN or Housing Ministry for some advice?

Please advise. Sorry all.

Appreciate it.

I consulted both the invoice lawyer and my new spa lawyer, both said need to pay that amount. Please help