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This post has been edited by kelvin667: Jan 7 2010, 02:14 PM

use your own lawyer better , buyer lawyer sometimes bias to their site ,

hi bro, i heard govt loan procedure slow a bit.

if you wish not to appoint your own lawyer to attend to the S&P, things that you may want to take note:-

1. is the legal firm reliable ? because all $ for the transaction will go thru d legal firm;
2. read carefully the agreement- completion date, your right to charge late payment interest etc ( further more it is a 100% loan from govt, will you be getting some deposit? i recommend you to get at least some deposit to secure, if half way thru the buyer withdraw then you still hv $ to forfeit);
3. do bear in mind, you may save some $ in using the buyer's lawyer, but anything happened, they are still the buyer's lawyer who will protect the buyer first

and last, where is your property situated? sell to me easier la.... hhaha...i am looking to purchase double storey house too...

This post has been edited by bearbearhong: Feb 10 2009, 05:23 PM

Get your own lawyer and draft out below terms.

Ask the seller to put down 10%. If he default, you reap the deposit.
After 3 month signing of SPA, charge him 3% interest on the remaining 90% as late payment.
By the 5th month, buyer is deem un-interested and he loses the deposit.

That will get your property sales execute nicely. These term may look like taking advantage of the buyer but it's meant to protect you, the seller.

10% deposit is too much lor.
10% can be downpayment liao.

Deposit usually is from a range of few hundreds to few thousands.

good...but 3% too low le..standard average 8% on daily basis...

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Added on February 10, 2009, 5:42 pmdeposit=downpayment

standard sale and purchase required 10% of the purchase price

This post has been edited by bearbearhong: Feb 10 2009, 05:42 PM

Not when I purchase my house. Deposit is deposit, downpayment is downpayment. If both are the same, why different terms? Morever it is a legal binding documents. When I bought my house for 250k, deposit only 5k.
Deposit how much depend on the agreed amount between buyer and seller.
If a house is 200k, 10% deposit = 20k. If later buyer unable to get loan have to cancel the deal, then seller mah buta buta untung 20k? No such thing.

5k is money when you first make offer?
If yes, the correct term would be earnest money.

The buyer would not lose out if he have smart advisor.
If you're the buyer, I would recommend you add the below term in your S&P.

The seller would return the down payment in the event of the buyer failing to secure the loan.

oh yes. deposit=downpayment, it depends whether is refundable, after paying up the deposit, the remaining is the balance purchase price you need to pay within agreed period. In legal term, it is defined as deposit.

i believe you purchased your property direct from developer.

normally the first 2% is the earnest deposit, and when buyer sign the agreement, buyer needs to pay the balance 8% f purchase price to make it 10% deposit. it is standard practice in property sub sale market. Under a standard sale and purchase transaction, if either party default half way, the other party entitled to forfeit the deposit (if Vendor withdrew from the transaction on his own default/neglience etc, the Vendor hv to refund the deposit + 10% purchase price compensation to Purchaser). These are all standard practice in market, at the end of the day, it will be a contract to be mutually agreed by both seller and the buyer, so it is very much up to both parties on agreeing in the draf sale and purchase agreement.

I have seen cases where seller forfeited the deposit bcos buyer cant obtain a loan and unable to pay up the balance within the agreed time, reason, simple= once you entered into the agreement with the seller, you have taken up a contract responsiblilty to settle the purchase price within the agreed time. Of course, unless before signing the agreement, both parties agreed to insert clauses to protect buyer whereby deposit is refundable if buyer unable to obtain loan (however, not many seller are friendly enough to such request, if i was selling my house , definitely i wan a smooth transaction, if i get 1 buyer fails to get loan, i may hv wasted few months of waiting for nothing )

This post has been edited by bearbearhong: Feb 10 2009, 09:44 PM

It's a 2nd hand house.
Anyway I understand what you mean. So that's where caveat & so on comes in.
But if buyer is able to come out with 10% deposit, why would he needs 100% loan?

may be extra $ for renovation...i heard OCBC oso offering 90%+10% loan

aa

This post has been edited by kelvin667: Jan 7 2010, 02:19 PM

Wow... the difference is so big! Something seems suspicious here.
Better use your own lawyer.

If the buyer hired agent den his/her lawyer should be cheaper
but as advise use ur own lawyer...
10% Dawn payment upon signing S&P is compolsory

hi Kelvin, the legal fee charged by lawyer is regulated & if i am not mistaken, they will charge 1% on the first RM100k and 0.7% on the RM150k, and if you hv exisitng loan, they may charge you few hundred to attend to discharge, the rest will be expenses for land office, stamp office...etc. However, if you opt not to appoint your own lawyer, and the buyer's lawyer will attend for you the discharge only, thats why the later's fee is cheaper.

Even if you are getting your own lawyer, you hv to make sure good communication with your lawyer and you will be clearly briefed on the agreement & always updated on the progress. Not all professionals can be trusted, they are human too...

You are right, if the buyer cant give an clear estimated time for the loan to be released, you will risk serving d bank repayment for months.

so, Good luck!

This post has been edited by bearbearhong: Feb 11 2009, 09:39 AM

My property is located at shah alam, bukit jelutong..

too far from my chosen area le...too bad

Thanks for the advice.

This I heard from the lawyer, not sure how true, If were using the same lawyer as buyer, the lawyer only charge once for the S&P agreement which borne by the buyer. My side will be the charge of Discharge and the Disbursement fee only. Anyway getting a piece of official quotation from them today and will update you guys.

Thanks.