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1. Information which a buyer should obtain when buying a house 1. Does it have a separate title? 2. Take a photocopy of the title. 3. Get a photocopy of :(a) current quit rent receipt; (b) current assessment receipt. 4. Make sure you deal with owner of house or his duly authorised agent. (such authority should be in writing). Any other person will not be able to make any binding commitment to you. 5.1. If the house/apartment does not have any title, then get evidence of the seller's ownership i.e. a copy of the Sale & Purchase Agreement (SPA) made by the seller with the developer when he purchased the house/apartment 5.2. If the seller is a Second/ Third hand owner, then he would have to give you:(a) 1st SPA made by 1st owner with developer; (b) 2nd SPA made between 1st owner and seller, (if 2nd hand); and (c) 3rd SPA between 2nd owner and 3rd owner seller, (if 3rd hand). as proof that the seller is the owner of the house/apartment. 6. Did the seller take a loan to buy the property? For most cases, the answer is "yes". In such a case, you should get the seller to provide you with the bank's statement of how much he still owes the bank (redemption statement). With the redemption statement, you would know how much money you can release to the seller and how much is to be paid to his bank to obtain a discharge of the property from the bank. 2. Information relevant to apartment 1) Maintenance and other charges that need to be paid to developer/management committee. You should check that seller is up to date with his payments and there are no arrears due to developer/management committee. 2) If the apartment has no strata title, the purchaser must notify the Developer of the assignment after the completion of the sale. 3. Housing Schemes that are developed by Statutory bodies e.g. Penang Development Corporation (PDC), Perda, PKNS, etc 1) The SPA of such schemes may have restriction on the buyer selling the property i.e. it could not be sold within a stipulated period or without the consent of the government. 2) The title to the property may have restrictions. (the restrictions could be read from the title or search of the title) e.g. property cannot be transferred or charged without State consent. 3) The consent application may take a few months to be approved. 4. Documents you need to sign 1) Sale & Purchase Agreement; 2) C KHT form (form required to be submitted by Vendor and Purchaser to Inland Revenue Department) (now exempted) 3) Stamp Duty form; 4) Transfer form 14A. (If title is issued); 5) Deed of Assignment (if title is not issued). 5. The process involved in getting you registered as the owner of the property (in cases where title is issued)
After stamping transfer form. How is stamp duty calculated? For the transfer/assignment (if no individual title is issued).or part thereof of the loan amount e.00 2% 8. whichever is higher. Valuation Department then values property and informs Stamp Office of valuation. deed of mutual covenants. legal fees etc.000/. 4) Stamp Office then informs Valuation Department of transaction. the process is expected to be shortened. On presentation. 5) Stamp Office then issues PDS form to the lawyer. With the computerization process recently implemented in all Land Offices/ Registries in the country. Loan of RM100. However it may take several months (depending on which Land Office) before the physical title is returned by the Land Registry/Office. a penalty would be imposed. the title would be sent to the bank.00 More than For Charge 500.00 1% 1. stamp duty is RM 500/. You have the right to appoint a lawyer of your choice to act for you in any transaction whether it is a purchase from a developer or an individual. Buyer is normally given three (3) to four (4) weeks to pay stamp duty failing which.1) Both seller and buyer sign transfer form 14A.on the original. If you obtain a loan from a bank to buy the property. After all. 7.000.00 On the Following 400.000. It may take about a week for the Stamp Office to return the lawyer the duly endorsed form. you would be the registered owner of the property. A lawyer can: (a) advise.000.000. the SPA for purchases of residential properties from a developer is a standard form agreement fixed by law.000/-. 6) Lawyer collects stamp duty from purchaser and proceeds to stamp transfer form. The stamp duty per copy of the document is RM10/-. Appointment of Lawyers 1. prepare and /or vet documents such as SPA.g. Verification of the above can be done with the Bar C ouncil. deed of assignment.00 3% Stamp duty on a C harge is RM5. deed of reassignment and loan document.000. However. You should get a photocopy of the title from the lawyer for your record. You should ascertain that:(a) he is a lawyer. 6. lawyer presents the transfer form to the Land Registry/Office for registration. Each party to the transaction is advised to retain separate lawyers to protect their respective interests. 3) Stamp Office then stamps 'transfer form' for a nominal value of RM10. 2) Lawyer sends transfer form to Stamp Office for adjudication to ascertain how much stamp duty is to be paid.00 per RM1. The assessed value is the value assessed by the Valuation Office based on the purchase price or the market value of the property. deed of reassignment. are borne by you. (b) that he has a valid practising certificate for the current year. based on the adjudicated value by the Stamp Office: Amount charge (RM) Percentage Duty (RM) On the First 100.00 and returns transfer form to lawyer. .
Can a lawyer act for the seller. (stated herein is for fees only and does not include disbursements). Lawyers' Fees Click here for the scale of professional fees chargeable by lawyers. 8. encumbrances (charges. the charge (Form 16A) for registration at the land office. 11. water. (h) if the buyer takes a loan. buyer and the buyer's lender? A lawyer may only act for one party in one transaction. bankruptcy/insolvency and company searches to ensure that there are no surprises. The undertaking will include an undertaking that it will not foreclose the property if the loan. (f) Income Tax file reference number. get the consent of the developer to the sale of the property to the new buyer and to undertake the registration of the property in the name of the new buyer. retain 5% of the purchase price for the purpose of Real Property Gains Tax. The lawyer should also get an undertaking from the developer not to further encumber the property. (g) for a sub-sale where the individual title has not been issued. and for a development project with a master title. However.(b) conduct land. (f) prepare and witness the execution of statutory forms. electricity. get a letter of undertaking from the lender. (c) C urrent year assessment receipt. interest.e. A sale and purchase is one transaction and a loan is another separate transaction. to enter a private caveat to freeze all dealings in the property until it is transferred to the buyer. caveats). engage a lawyer. (e) Letter of Undertaking to purchaser's bank to refund purchaser's bank loan released to you in the event the transfer/deed of assignment signed by you in favour of purchaser cannot be registered/is defective. (b) C urrent year quit rent receipt. and (i) present the transfer (Form 14A) and if applicable. Utility deposits Make sure you make arrangements with purchaser to obtain refund of the remaining deposits i. and/or to hold the balance of the purchase price. as a seller or buyer. telephone etc. to hold all money paid. a letter of disclaimer from the chargee of the master title confirming no right or interest in the individual property. conditions or restrictions on the title (important for a buyer). (d) Redemption Statement from your bank (if you have charged your house to the bank). 10. Lawyers are not allowed to give any discount. There are fixed scales for lawyers' fees if you. or that a party is bankrupt/insolvent. Therefore a lawyer can act for a seller or buyer. and also a lender or borrower. If any lawyer gives a discount on the scale fees. such as a different registered owner. etc has been repaid/paid. the solicitor concerned should have regard to any possible conflict of interest situation. but may witness the execution of any documents/instruments by any party. he could face disciplinary action. (c) if there is an individual title. (d) send documents/instruments to the Stamp Office for adjudication and arrange for their stamping. Lawyers are bound by the Solicitors' Remuneration Order 1991 (SRO) and there are scale fees for all conveyancing transactions and secured banking transactions done by a lawyer. (e) act as stakeholder. House Seller's Guide Documents/ information you must provide buyer/buyer's solicitors (a) C opies of your previous Sale & Purchase Agreement and Loan Agreement/Title. 9. For Apartments .
C lose Window . 13. Receipt of Balance Purchase Price Generally. You or your lawyer must notify the Local Authority of any change in the ownership of any house/apartment so that its assessment record could be updated. there would be a short time lapse between the payment of the balance purchase price by the purchaser to your lawyer and the date when you receive the balance purchase price from your lawyer depending on the completion of documentation. It is an offence if you fail to notify the relevant authority. 12. Notification of Change of Ownership of House/Apartment to Local Authority i. You would be required to provide the necessary original receipts to obtain the refund. Please seek clarification from your lawyer.e. Majlis Perbandaran.Make sure you make arrangements to obtain the refund of deposits which you have paid the developer.
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