Congratulations on your purchase. Before I proceed to comment, may I know if you bought it directly from vendor or through a REN? And may I also know your location ?

Hi everyone.

I am new on property in Selangor/KL. I have virtually met with 2 sales agent for their on-going project and my mind is feel of too much info. Most of their unit is going to fully booked. One with HOC (expect to complete next year Sep if not mistaken) and none for the other (expected complete in 2025)

May I know where can I learn and get updates on new property (about to launch or newly launched)? From there I hope to able to identify the property is in premium or reasonable based on market rate (psf), able to flip and so on.


This post has been edited by rocketm: Nov 15 2021, 07:51 AM

1. From agents ... it will be faster since they have all info from developers.

2. Register with developers sales staff. They will update potential buyers with new projects and promotions.

3. Follow independent property websites ..... The Edge Property, The Star Property, iProp, Propertyguru etc

4. Property blogs.

At the end of the day, many buyers will have to deal with No.1 and sometimes No.2

may I know how HOC actually works in layman. I only know it is for 1st home buyer, offer only by Maybank and cannot join name in the loan. Once we got the vacant possession, we need to pay for 5 years of "rental", then after 5 years, we can choose to buy the house with actual loan or exit by selling it.
1. For HOC, can I skip the 5 years rental process and proceed to the actual loan?
2. I noticed the schedule display by the agent after 5 years, the loan is actually higher than normal home loan (I am compare with same square feet of different project with and without HOC). Is this true?
3. Does all the 5 years of rental payment will use to deduct the home loan principal?
4. Does HOC projects need to pay more downpayment, progressive payment and etc?
5. Anything I left out in HOC that is important for buyer?

Does the selling price from the agents and developer sales staff will be the same to buyer?

What is the sweet place to start to focus for buying new property?

It should be same .... otherwise, no agents will or can sell the property.

As mentioned in earlier post

This post has been edited by mini orchard: Nov 15 2021, 08:00 AM

Read here

https://forum.lowyat.net/index.php?showtopi...&hl=Rent+to+own

This post has been edited by mini orchard: Nov 15 2021, 08:02 AM

what is Vendor and what is REN? penang state
through agent

Vendor : seller / owner
REN: real estate negotiator

i just bought a subsale landed semi-d

i want to confirm/understand on the paper work process (maybe other related process on buying subsale property)
1. get a lawyer and pay 1k deposit for lawyer start working for you
. This one very subjective. All lawyers have different practices

2. pay 1% deposit to lawyer to book the property
Normally agent will ask for 2%-3% for earnest deposit. But again it’s depend on negotiation between both buyer and seller.

3. pay 10% to lawyer, then lawyer transfer 10% to Seller
Normally for the deposit of 10%, it will deduct the amount paid as earnest deposit and balance to paid to lawyer. Lawyer will normally need to retain 3% for income tax purposes (waived in 2021 if eligible for RPGT exemption) before releasing it to seller the balance. And if there’s other outstanding fees by seller to town council on assessment or quit rent, lawyer might deduct the amount too, subject to seller instruction.

4. Buyer sign SPA (sign Facility agreement(FA) aka Loan agreement at the same time)
Preferably this arrangement la.

5. Seller sign SPA
The balance amount (3) will given to seller after they sign the spa.

6. Lawyer send the Facility agreement to Bank for bank to sign ( certain bank need Lawyer to key-in into bank's mortgage system as well)
7. Bank return the Facility agreement to Lawyer
8. Lawyer get SPA and FA stamped
9. Lawyer sent FA back to Bank
10. Bank instruct 3rd party Valuator to evaluate the property
All above correct

11. Evaluation Report (ER) will be prepared and hardcopy will be sent to Buyer and Bank each
Buyer will have to pay the cost of ER (not sure if it’s the same for Penang on this).

12. Bank's insurance company to perform checking on Buyer medical status before proceed to approve the MRTT/MLTT
13. once MRTT and ER comes bank no issue, Bank start release money to Seller's loan bank first to settle outstanding loan and the remaining to Seller's own account
The monies will be send to SPA lawyer to distribute to all parties

14. Buyer can get key from Seller
After clearance, do final inspection before keys handover

15. Buyer need to do name changing for TNB/IWK/Water/Assessment/Quit Rent
Assessment n quit rent normally laywer can do for buyer. But for utilities, then buyer need to deal with it themselves.

do i missed out any steps?

add: if Buyer find own bank to get loan, need prepare 3-4 copies of needed document to apply on different banks
Buyer can find own Lawyer too, some Lawyer gives some discount and do good work
Most bankers can accept softcopy docs from buyer for loan application. Buyer can find own laywer but don’t expect your agent to follow up for you unless you instruct your lawyer to give full cooperation to the agent. But of cos it depends on the kind of agent you dealing with. Not all agents will do proper follow up for their client.

okay, overall my understanding is correct, however, i want to understand more on how Buyer's Bank process Loan before release payment to Seller's Bank and/or Seller's Bank account
in my understanding, Bank need to do two things:
- get a 3rd party Evaluator to come out ER
- process MRTT (no idea at all how bank process this)

after Bank gotten ER, what is the next step? i want to know the details of my List #10 step.

If i were to buy a property with an existing tenant do I have to honor the previous contract signed between previous landlord and tenant?

Yes. ....till the end of tenancy. Thereafter, is up to your decision whether to extend or otherwise

i thought is depends on the SPA signed, wither is with vacant possession or c/w tenancy.

if vacant possession, the seller have to deal with the tenant...

Even if is vp with an existing tenant, legal or otherwise, there is no guarantee that seller can evict the tenant on time.

Buyer will have to take risk.

Of course buyer can then claim for liquidated dameges but the whole process can be unpleasant.

This post has been edited by mini orchard: Nov 16 2021, 10:24 AM

Actually the Valuer appointed are bank panel Valuer also. For insurance side, I am too sure too as we don’t deal with it.
For valuation report, most bank even before they get the report, they have already offer you a loan based in indicative valuation. The Valuer are assigned to confirm on the value based on the report they submitted. The Valuer will make arrangement to visit the property, take photos, do some measurements and go back to prepare the report then submit to the bank.

Depends on the existing tenancy agreement. Some need to fulfil while some can release tenant with notice given. Or some vendor will compensate tenant to release them

new properties that listen with 0% downpayment, no legal fees, etc

is it real? like i only need to pay for booking fee to purchase a house?
no hidden charges

A lot of newly launched properties have such promos, but please read the fine print carefully.

Most only cover legal fees if you sign with their panel lawyers.

You usually still need to pay for stamp duty on memorandum/instrument of transfer aka MOT (chargeable when received vacent possession) and for loan agreement.

However if you're first home owner there's full stamp duty exemption given to both MOT and loan agreement for the purchase of a first home worth not more than RM500,000.

This exemption will be for the Sale and Purchase Agreement completed between January 2021 to 31 December 2025.

In addition there's current Home Ownership Campaign where you can apply to waive the stamp duty for MOT, subject to application of unit with REDHA (not all projects/units within project are under MOT).

Beware that sometimes during application of HOC developer often marks up property price to report to REDHA and this may cause you to need to pay extra charges (sometimes few hundred, sometimes few thousand) because there's a difference between initial agreed price and the REDHA price.

Note that properties with 0% downpayment are often sold at "future price" and are over current market value, so if you're doing this for investment/short term stay, be aware that there's high chance you're overpaying for the property, so do your due diligence.



This post has been edited by DragonReine: Nov 17 2021, 11:53 AM

thanks alot for the insight
im afraid of the MOT charges, i don't have much cash in hard for this. this is what i worry about.

If you want to avoid MOT altogether then your best bet would be to look for any property with ongoing HOC, or look for property under 500k under residential title if you're first time home buyer to be eligible for exemption.

Other T&Cs associated with first home buyer exemption:
MOT will only collect when property is fully constructed so it depends if you're able to save up that much during the construction period.