Hi,

I wish to sell off a property but need to clarify the procedures..

I know that as the 1st step, there is a 2% (or is it 3%) fee payable by the interested buyer.

Once cheque is given by the buyer, if I don't want to sell, I can return the cheque, right? (any time frame for the return of the cheque to the buyer?)

Or even if I have banked in the cheque, within 14 days time (or...?), I can return the money to the interested buyer, right?

My fear is having accepted the cheque, I am bound to have to sell to that buyer. Cos' as this is co-owned property, I am afraid that the other co-owner may later change mind or find another buyer with higher price..

Thanks!!

The 2% is consider as a booking. To what i understand is that you need to return double of the amount of money if you wish to withdraw. However, if the buyer withdraw, you may keep the booking fees.

It is also subject to whether you have signed an agreement with the buyer. So I think is best for you to discuss the selling with the co-owner before accepting any booking.

All the best!

Thanks!

But I was under the impression that the booking is for the buyer to indicate his/her sincerity (so the 2% is also called an earnest fee) and it is for me to decide if I want to give him a option to purchase.

Or is it that once I accept the 2%, I MUST give him the OTP to excercise?

But u are right about discussing with my co-owner...

The buyer usually pays 2% to secure the booking. After that he/she shall proceed to prepare the S&P (there is where you get you 10% deposit). If the buyer does not respond after a certain period of time (as stated in the agreement), the $ is forfeited.

What i heard may not be true, so i guess is best for you to verify with the property agents/consultants.

correct me if i'm wrong, but it doesn't necessarily have to be in that order, or that way. the 2% booking can be used as a general guideline though.

Example...
If you are selling property around RM200k...
...You can ask for 2%, which is RM4,000.00, or you can ask for more, or ask for even less if both of you are agreeable to mutually agreed terms & conditions before hand. I don't think there are any hard and fast rules when it comes to booking fee cos it depends on the circumstances and what was discussed and agreed upon between the buyer and seller. Remember to ink (put in black & white) the so-called mutually agreed terms & conditions in the presence of a witness (can be your witness or his witness) It will help clear confusion and potential disputes if they arise in the future.

Looking at your scenario, I suggest you get the other co-owner to agree to the transaction first. Spare everyone the trouble and misery later. If I am the buyer I would not give any cent for booking fee if the seller is double minded or not sure. You need to be fair to the other person who intend to buy from you too. Your co-owner may be able to get someone who is willing to pay higher, likewise the buyer may also be able to find another property which is cheaper. I'm sure you or your co-owner will not be happy if the buyer suddenly ask for the booking fee to be refunded.

If I am the seller, i will put in black & white and inform the buyer that once the selling price and other terms is agreed upon, nothing is refundable be it booking fee and especially the 10% paid during signing of S & P.

Looking back at your scenario, i suggest that you get advise from the proper people i.e. lawyer. Later on once you have had more info and experience you'll be able to find your way around quite easily. The first paragraph in my reply is not recommended for people who are newbie to buying n selling property, although I'm not an expert either. Best wishes...

i would suggest you clarify with the purchaser that the sale is subject to the approval of your co-owner, and also set a timeframe for you to obtain the approval, failing which you have to return the cheque.

once you have taken the cheque, and you don't return it immediately, you can also be deemed to have accepted.