Hi all,

I'm trying to sell my dad's property and a potential agent/buyer initially expressed interest in buying. However, they requested for us to increase the SPA price by around RM300k (i.e. RM300k more than the actual agreed selling price) for bank loan application.

My questions:

1) Is this legal? Can the agent/buyer make such request?
2) If we the seller agree, will we get into trouble?

Thanks in advance.

This post has been edited by oricori: Jan 4 2020, 10:45 PM

As long as got bank valuation the property at that pricing, then only can work.
The reason is coz they do not have so much cash in hand. Need come out with the downpayment.
So by marking up the price, maybe they dont need to fork out the downpayment anymore.

On your side, which is the seller. Need to look at the Real Property Gains Tax. By transacting sale at this mark up pricing, you will need to pay more RPGT.

only issue is you might get into inland revenue problem later on. unless they pay extra for the tax then ok.

your case, (example):
Nett selling price: 250k
SNP price: 300k
90% Margin of Fiannce: 270k

Amount payable to vendor(you) and his end financier(your bank): 250k
Amount payable to buyer(your buyer): 20k


1. basically there is no problem if the valuation is there. Because this is the grey area of this industry. maybe the buyer need to have some extra 20k and 0 cost of entry to buy property. There is no issue of doing this. the price will follow the snp price basis. e.g. 300k. the new buyer need to bear extra cost. e.g. legal fee, rpgt, and others. It cause no harm to you. Buyer can make such request.

2. wont, provided you and the agent/buyer agree on the terms and conditions.

No RPGT because it's an old property (>10 years old). Is that right?
The potential buyer/agent said they have their way to sort out the bank valuation of the property....


No RPGT because it's an old property (>10 years old).


No, in my case:
Nett selling price: 250k
SNP price: 550k
90% Margin of Finance: 495k

Amount payable to vendor(you) and his end financier(your bank): 250k
Amount payable to buyer(your buyer): 245k

His excuse is that he need RM245k to do major renovation of the place.

This post has been edited by oricori: Jan 10 2020, 09:25 AM

Want to sell price: 250k.
Bank able to value the property up to: 550k.

Really?! Wow.


For RPGT, it doesnt matter if the property is 5 years or 10 years or 20 years.
All also will kena RPGT now.
Based on the property value dated on 01 Jan 2013.

Yeah, crazy right? I was very skeptical, but the agent assured me the buyer can kaodim this (how, I really don't know).

For RPGT, if following 01 Jan 2013 property value, no matter how much I sell, I will still pay the same tax right? So this SPA price will not affect RPGT?

01 Jan 2013 is the base value. I'm not sure how to obtain this value.
So this mark up S&P price of 550k minus this base value X 5% = is the RPGT. Rough calculation.

Compare to:
250k minus base value X 5% = maybe even negative if you are willing to sell at below year 2013 price.

I selling price is 200k & mark up to 500k

200k rpgt pay by owner and the 300k rpgt pay by buyer

maybe pm me.. your house...

sell for 250k but value 550k.. seem like good deal

maybe no issue, cos

buyer get 245k cashout

bank get interest income 4%

valuer get higher valuation fee

banker sell MRTT of 500k and get premium

vendor sold at desired price

Purchaser snp lawyer get more legal fee

Loan legal lawyer get more legal fee

vendor legal lawyer get more legal fee

lhdn get more rpgt tax

lhdn get higher mot fee

lhdn get higher loan stamping fee

many parties win in this game, why not?

agent will be sad, coz he only get the comm based on the nett price

Very good analysis
Macam all parties happy

I see, so it's the difference, not using the base value. Thanks


Good suggestion. Thanks.


Example only. My house is selling at RM430k but buyer wants to put RM750k for SPA. Can check my post history if you want to know more (I advertised this house on Lowyat)


I don't see any benefit for seller. And if against the law (which I'm sure it is), would the seller be punished?