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Proforma sales and purchase .. sales form?
TSnammers P
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May 18 2022, 09:53 PM, updated 2y ago
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New Member
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Planning to buy a property under construction.. agent asking me to sign this proforma sales and purchase which they call it sales form. May I know how legally binding is this and will it be different from the actual SPA?
One of the terms mention to allow them 6 months after VP to deliver the unit with the “freebies” such as aircond, built in wardrobe etc. Sounds like they already foresee project will delay completion and this term is to avoid paying LAD? Because VP on time ma but without the “freebies”. Or am I misunderstanding ?
Another clause states this “consent to amendment/modification of building description and/or plans”. Mentions there shall be amendments or modifications which shall be approved by appropriate authorities and certified by developer consultant and architect…
Sorry if got anything unclear.. first time homebuyer
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mini orchard
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May 19 2022, 07:03 AM
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QUOTE(nammers @ May 18 2022, 09:53 PM) Planning to buy a property under construction.. agent asking me to sign this proforma sales and purchase which they call it sales form. May I know how legally binding is this and will it be different from the actual SPA? One of the terms mention to allow them 6 months after VP to deliver the unit with the “freebies” such as aircond, built in wardrobe etc. Sounds like they already foresee project will delay completion and this term is to avoid paying LAD? Because VP on time ma but without the “freebies”. Or am I misunderstanding ? Another clause states this “consent to amendment/modification of building description and/or plans”. Mentions there shall be amendments or modifications which shall be approved by appropriate authorities and certified by developer consultant and architect… Sorry if got anything unclear.. first time homebuyer Not going to comment on the tnc as developer is not going to change it to suit you. If you are not agreeable or in doubt, DONT BUY. It will save you plenty of headaches later on. And please dont say you like the property and is affordable. There is always another better property in the market.
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DragonReine
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May 19 2022, 12:33 PM
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Check below explanation in Blue: QUOTE(nammers @ May 18 2022, 09:53 PM) Planning to buy a property under construction.. agent asking me to sign this proforma sales and purchase which they call it sales form. May I know how legally binding is this and will it be different from the actual SPA? Functionally, this is merely a booking form/intent to purchase and is not as formally binding as SPA (booking fees are technically illegal by the way https://www.edgeprop.my/content/1895670/boo...sing-prohibited if they refuse to refund in the event of a cancellation you can threaten legal action). Assuming your under-construction property is a residential property, SPAs are standardised to follow Schedule G or Schedule H of the Housing Development Act. You may search online to see how Schedule G/H are structured.
Mostly pro-forma is used as the basis for the property details in SPA (price, unit etc.), where SPA is the true formal agreement.One of the terms mention to allow them 6 months after VP to deliver the unit with the “freebies” such as aircond, built in wardrobe etc. Sounds like they already foresee project will delay completion and this term is to avoid paying LAD? Because VP on time ma but without the “freebies”. Or am I misunderstanding ? Yes, you're misunderstanding. VP = when they're able to get certificate of completion from appointed architect saying the structure of the bare building and its facilities is safe and ready for inhabitation (including the ability to get water & electricity), this DOES NOT INCLUDE the extra freebies like wardrobe, aircon etc. that usually aren't in SPA anyway.Another clause states this “consent to amendment/modification of building description and/or plans”. Mentions there shall be amendments or modifications which shall be approved by appropriate authorities and certified by developer consultant and architect… Standard legal clause to cover both you and developer in the event something happens (land change from natural disaster for example) that requires changes to be made to the approved building plan that deviates from SPA agreement.Sorry if got anything unclear.. first time homebuyer This post has been edited by DragonReine: May 19 2022, 12:35 PM
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TSnammers P
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May 19 2022, 12:55 PM
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New Member
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QUOTE(DragonReine @ May 19 2022, 12:33 PM) Check below explanation in Blue: Thank you so much for taking the time to reply. Understand better now !
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