Hello all,

Would like to hear from your advise, the S&P signed and should be executed within 90 days, but the implementation of FMCO making the transfer not possible.

In case if the FMCO keep extending, am I legally have to pay the interest once it past 90 days? or there is some clause for buyer to exclude from this..

After 1 year into the pandemic with mco, cmco and rmco, your lawyer should have inserted a clause to safeguard you.

You should check with your lawyer if such a clause exist.

If is pre covid, if the purchaser delay in completing the transaction and not because of the vendor's fault, then interest is payable.

The lawyers are still able to work and open as usual. So better check with the lawyers on this matter. Force majure clause only valid if it’s a full lockdown like the first MCO where everyone are stuck at home.

Of cos, if both the purchaser and vendor agreed to extend the signing until FMCO is over, you can request for your lawyer to draft a supplementary letter on this to protect both parties.

Hi, do you mean that the s&p has been signed or not yet?

If you meant late payment interest for the payment of balance purchase price, kindly check your s&p if this clause was included in the agreement. Considering the pandemic has been more than a year, this clause shouldve been inserted in the agmt.

However, if it's not, you can get your lawyer to prepare a supplementary letter or email in writing for the vendor to waive the Late pymt int. to you due to the implementation of FMCO.

As for the latest FMCO, law firms in the conveyancing line are not allowed to operate but only work from home. Land offices are closed as well.

Hope this helps!

Based on this, I think it depends on the location and state … cos in Sabah, lawyers are allowed to operate but with minimal staff. And land offices open as well.

Well I want to ask ... when developer engage panel lawyer and offer free legal fees, what kinds of wierd and devious clauses do they insert into the SPA? If we can share experiences then even if lawyer is not on our side we can ask for certain things, or we know what we can or cannot ask for... which helps...

I know a developer that made buyers sign 48 month delivery due to MCO, and also sign a pre-authotisation for developer to change the plans later on (one to developer, one to government body).

How about you? What should we watch out for, and what should we avoid in the SPA?

Hi All, Thanks for the reply.
Yes I've signed the S&P somewhere in Apr, and loan side not executed due to lawyer slow and bank request for some clause amendment.

S&P side dont have such clause to protect.. basically can only discuss with the seller to waive the cost, if he willing to..
and worse thing is, not too sure until when the FMCO will be...

Hi. if you are buying from developer, most of the terms are same as prescribed under Housing Development Act. Only the info of the project can be change. So basically if you are buying from developer directly, you can be assure that the terms are protecting you.

*However, this only applies to Residential titled properties. Commercial title properties are not bound under HBA jurisdiction.

Reading article
This is a good article for your info.

Actually should be ok since bank and lawyer are able to operate. I recently got 2 cases completed during FMCO and 2 SPA signed in lawyer firm too.

Commercial under HDA how?

Yea.. my bank lawyer sucks..
He said he cant get Miti letter, and bank side pending for clause amendment since 30 May ..

Then better read the SPA properly. Cos from my limited knowledge on commercial under HDA, the title will still be commercial until the VP is out then can apply for Residential benefits.
Correct me if I’m wrong as in KK, we do not have any commercial under HDA Project yet. So I can only say what I learn from some developers based in KL.

Hmm… then your lawyer will have to communicate with the vendor properly regarding this matter to avoid penalty.

Yeap hopefully.
But my spa and loan lawyer is diff lawyer.

But can clearly see the service level rendered between 2 lawyers in the difficult time…

Hi sifus, i need some advice on home loan refinancing. Here's the situation:

1) Plan to refinance a fully paid property (market rate around 850K). I can only get 70% max (595K).

2) With 595K, i would like to get a bigger unit in the same condo i m staying (priced @ 680K), max 70% loan (DP need 204K).

3) Balance of (595K-204K) 391K, should I: (A) dump 391K into my other home loans (I got existing 4 home loans) or (B) put 120K EPF self contribution & balance 271K into other home loans?

4) I have several home loans so should I put some amount to all home loans to reduce interest or settle 1 of the home loans and then put the balance into the rest of the home loans?

Thanks in advance for your advice!

Dump the 595 into 2.

you means put more on DP for the new property?

Yes

Actually, if i refinance 70% (house 1) then with the cash payout I settle one of my home loan (house 2), can i borrow my 3rd property (house 3) with 10% DP?

90% or DSR whichever is lower.

I think the lifting of 70% for 3rd house expires in May 21. Not sure it is extended. Pls check with your banker.