Hi sifus.

Just got the loan of my first home approved recently. May I know if it is okay to sign both LO and S&P on the same day? The banker is telling me to sign the LO on tomorrow, while the lawyer is telling me to sign the S&P on tomorrow also.

Some of my friends who have already bought their houses say that it is better to avoid signing both documents on the same day as we have to make sure that the loan is 100% secured first. If I sign the S&P but some issues arise from the side of the loan, wouldn't it be bringing troubles to me?

Thank you.

Your loan is 99% secure given that you've already got the LO from bank. Nothing is going to happen here unless you request to cancel it.

Just sign both on the same day to save time.

I see. Are there any parts in the LO, S&P, and loan agreement to which I should be paying extra attention?

Housing Development (Control and Licensing) Act 1966 (HDA).

HDA offers several layers of protection to home buyers.

Consider this if you are a first time home buyer:

All new housing developers in Malaysia are required to get their developer licence, and advertising and sales permit before they offer and sell housing properties. Advertisements should include:
- Housing developer’s licence number and validity date
- The advertisement and sale permit number and validity date
- The name and address of the licences housing developer
- The expected date of completion
- The name of the housing development
- The selling type of each type of housing accommodation

In general, advertisements should include all the relevant information about the new housing development, so potential buyers can have a clearer picture and accurate information of the residential property.

What are Schedule G and H?
The terms of the sale and purchase agreement is prescribed under the HDA. The forms of sale and purchase agreement are recommended under the schedules of the Housing Development (Control and Licensing) Regulations 1989.

Schedule G
It is prescribed for sale and purchase agreement of sell then build property. Schedule G is prescribed for the sale and purchase of a housing accommodation in conjunction with the portion of land, like:
- Terrace Houses
- Semi Detached Houses
- Bungalow, etc.

Schedule G shall be adopted for property with separated individual title. These titles are then issued to the buyer. As a buyer, you sign the transfer form, which are documents from the housing developer to transfer property to the buyer. The buyer will then have the individual titles in their name.

If the property is under financing, these titles are kept by the banks that have loaned the purchase of the property. But keep in mind that even so, your name is on the title and nobody can alter it.

Schedule G agreement determines that the property should be completed and delivered 24 months from the date the agreement is signed.

Schedule H
Schedule H is prescribed for the sale and purchase of a housing project in a subdivided building in the form of a parcel of a building or land intended for subdivision into parcels, like:
- Condominium
- Apartment
- Town houses
- Landed Strata Property

Schedule H means the buyer will have common properties. Common properties are things or spaces that you share with others within the project. This includes garden, visitors’ parking, even the corridor. This is the dynamic of strata living.

Schedule H agreement determines that the property should be completed and delivered 36 months from the date the agreement is signed.

Keep in mind that in the sale and purchase agreement, the building specifications and materials used for construction should be attached.

The agreement should also include approved plans of the property, like floor plan, layout floor, site plan, etc.

The sale and purchase agreement protects the buyer by prohibiting the housing developer to make any variation to the terms and conditions, unless it is pre-approved by the Controller of Housing.


As for Loan Agreement ...

As long you pay your monthly instalment on time, nothing will go wrong with the agreement.

All terms are stipulated by the bank and borrower have no say.

Ensure all details as per bank offer letter.

No problem signing on the same day. I did the same thing last 2 months

Thank you for the info. Will bear in mind when signing tomorrow.

I see. It's great to know this. Thank you for the information.

You can sign the Loan Agreement and SPA on same day. But try not signing SPA before you get the ACTUAL Bank Loan Offer documents. Hope this answer not too late