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.

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

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Added on February 10, 2009, 5:42 pm
deposit=downpayment

standard sale and purchase required 10% of the purchase price

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  )

Hi,

Actually the buyer had pay 2% earnest deposit to the realty agency and promise to pay the remaining 8% on the day signing of S&P. The 100% govt. loan stated on the LO might be for his loan purpose.

Might doubt will be on will govt. loan release will be really exceed 3 + 1 month which will lead to unnecessary problem. Imagine the loan release was drag to 9 month...the interest I need to serve to my financial institution.

Secondly, the lawyer, I learned from most of you that getting my own lawyer will be better. However, still considering as the different still large,
Buyer lawyer = RM700, own Lawyer = RM3000.

Just may be thinking, if any problem with this transaction, the lawyer will not be able to represent both lawyer since contradicting of interest. My concern is the realibility of the Standard S&P?

Please help anyone....

Thanks for all YOUR ADVICE, it really help me to get a clearer picture now.

Thanks,
Kelvin667