 URGENT

 VERY URGENT

 BY HAND
Mohd Fazreen Izuan bin Noordin  BY FAX
BLS (Hons), UITM. LL.B (Hons), UITM.
 BY POST
Muhammad Shakeel bin Mohd Saifuzzaman  BY REGISTERED POST
BLS (Hons), UITM. LL.B (Hons), UITM. DLSA, UITM.  BY COURIER
LL.M, UITM. AMIArb.
 BY COLLECTION
 BY EMAIL

IDEA FOR SOCIAL MEDIA ARTICLE POSTING-LEGALAIS

Idea 1

What happen when the bank unable to release the loan within the period stated in the SPA?

Let’s give you a scenario to visualize it.

The Seller has entered into a Sale and Purchase Agreement (“SPA”) with the Buyer. The term of the
SPA was 3 months completion period and 1-month extension with 8% pa interest calculated on daily
basis. Unfortunately, the Buyer’s financier was unable to release the loan sum at the end of the 4th
month.

There is two ways to go about it.

First way is the Seller is entitled to terminate the SPA in the event the Buyer fails to pay the balance
purchase price within the stipulated period (3+1month).

Upon termination, the Seller is also entitled to forfeit the “Liquidated Damages” being the Deposit paid
by Buyer, normally equivalent to 10% of the total purchase price.

Kindly note that the liquidated damages could vary depending on the agreement.

Or

Second way is the Seller can grant the Buyer another month extension with interest for the bank to
release the balance purchase price to him.

Therefore, it is important to know your right in a Sale and Purchase Agreement so that you won’t be
deceived by any other party.

Idea 2

Sale and Purchase transaction without a lawyer? Really?

There must be a time where you think that you would like to purchase a house by cash, without
obtaining any loan and to save costs and you would like to deal directly with the seller and not
engaging any lawyer to handle the transaction.

Good news to you that it is possible to complete a sale and purchase of property transaction without a
lawyer if the parties have the necessary knowledge on the procedures.

The important procedures that lawyer assists in a sale and purchase transaction include:

 conduct background search of the property and the parties, i.e. land search, bankruptcy
search or winding up search, etc.
 apply for consent, confirmation and/or approval from the relevant authorities, i.e. developer’s
confirmation of ownership, state authority’s consent to transfer, etc;
 redeem the property from the existing charge;
 submit the transfer instrument to the Inland Revenue Board for assessment of stamp duty
payable for the transfer; and
 present the instrument of transfer and such other relevant documents to the land officer for
transfer of name.

LEGALAIS
T3-22-16 3 Towers
No 296 Jalan Ampang
50450 Kuala Lumpur
Wilayah Persekutuan

T: +60 3 8408 2060 F: +60 8408 2060 W: -www.legalais.my E: hello@legalais.my

So long as you are able to handle all the procedures and process without the advice and assistance
of lawyer, you can complete the sale and purchase transaction without a lawyer.

Having said that, it is advisable to always engage a lawyer as the process of property transaction
could involve unexpected legal issues and complications, e.g. lodgment of private caveat by third
party, squatter issues, etc.

Idea 3

Did you know about the EPF withdrawal for house purchase?

You can use Account 2 for the purpose of funding your home. You will need to show evidence that
you have paid the booking fee and down payment for the property, together with the lawyer fee and
stamp duty for the SPA.

Plus, you can also assist your spouse/family to reduce/redeem his/her housing loan even though you
are not the borrower in financing the house, as long as you are able to prove your relationship by
submitting the supporting documents such as birth certificate or marriage certificate.

However, it is very important to note that your EPF money cannot be withdrawn for use in a house
renovation, as that is not included in the list of withdrawal types.

Wanna know whether you can do an EPF withdrawal? You must be:
 A Malaysian Citizen; or
 A Malaysian Citizen who has made Leaving the Country Withdrawal before 1 August 1995
and has opted to re-contribute to the EPF; or
 A Non-Malaysian Citizen who:
o Has become an EPF member before 1 August 1998.
o Has obtained a Permanent Resident ("PR") status.
 You have not reached the age 55 at the time the EPF receives your application.
 You have a minimum savings balance of RM500.00 in your Account 2.
 Your property intended for purchase must be for residential purposes only.
 Your application must be made within 3 YEARS of signing the SPA.
 You’ve made a housing withdrawal before, or have made housing withdrawal before but
already sold/disposed of the property.
 Your loan is approved from recognized lenders, or self-financed.

If you fulfilled all this, go head to the nearest KWSP counter or just use the i-Akaun! As simple as that.

For more info, you can go to http://www.kwsp.gov.my/ .

Idea 4

The condominium I stay has two towers; one is affordable housing scheme while another is higher-
end unit. Should the Management Corporation (MC) charge the same maintenance fee for residents
of both towers?

The answer is NO! The amount of contribution for the maintenance fees, contribution to sinking fund
and other costs for the maintenance and management of common property that have to be paid, are
determined by the share units.

Share unit determination is based on various factors such as the parcel’s size. Refer to the First
Schedule of the Strata Management Act 2013 for the formula.

Since the units within the other tower offer larger sizes, the share units allocated to the units within
this tower is higher than for the affordable house. Therefore, the strata owners of the affordable house
will pay a lower contribution of maintenance fee.

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By yours faithfully,
Nurazreen
Associate