NUR, NORA &

CO
WHAT DO YOU UNDERSTAND
BY THE TERM SUB-SALE
 Normally, sub-sale is a transaction where a purchaser buys a property not directly from a developer.
 It is commonly known as a second-hand property because the property is resold from the existing owner.
 This ‘existing owner’ is referred as ‘vendor’ in the sale and purchase agreement of sub-sale property
because he/she is usually a registered and beneficial owner of the property.
 This kind of sub-sale property is known to be sold in the secondary market.
 Unlike the new properties which are bought from developers, they are sold in the primary market while
the properties are still new or under construction.
 Buying sub-sale property gives a room for purchaser to deal directly with the existing owner/vendor and
allows for better negotiation in regards to purchase price, repairs, home furnishings and et cetera.
 In fact, the purchaser has the opportunity to go inspect the sub-sale property first before proceeding with
the transaction.
WHAT DO YOU UNDERSTAND
BY THE TERM PROPERTY
WITH TITLE
 A property title is a legal document that records and proves the ownership of a property. It is essential to
understand the property titles before making a purchase decision, because it could affect your purchase
cost, the selling process time and even the property value in the long term.
 Ownership is not complete unless you hold the land title to your property. Without it, the property
essentially still belongs to the developer
 Without legal ownership of your property, you won’t be able to sell, transfer or use it as collateral.

 For example, when banks see properties without Strata or Individual titles for over 10 years, they’re not
very likely to want to finance your loan for it either…
 Three types of title are master title, strata title and individual title.
DEFINITION OF TERMS
 1) Offer to Purchase: Prepared by the agent

The Letter of Offer is a written commitment from a potential buyer to the owner, expressing
their desire to purchase a particular property.
 2) Vendor: Owner of the property

 3) Purchaser: Buyer of the property

 4) Purchaser’s Solicitor

The agent who represent the purchaser or buyer

 5) Vendor’s Solicitor

The agent who represent the owner of the property

 6) Booking fee/ Earnest Money

Normally between 2-3% of the purchase price.

Upon execution of the SPA, 10% must be paid to the vendor. Since 3% have been paid as booking fee,
the term for the remaining 7% is called the balance deposit.

 7) Deposit: Earnest Deposit + Balance Deposit

The amount of money that the buyer obliged to pay to the seller at the point of exchange of contracts.

 8) Differential Sum: Purchase price-loan sum

The residual amount of the balance purchase price that is not covered by the loan sum.

 9) Existing Chargee: The vendor’s existing/ outstanding loan

The existing bank of the vendor who have the power to charge the property that the buyer buys under
the loan.
 10) Memorandum of Transfer: Form 14A

A form of registering the title into the purchaser’s name at the Land office. Both parties will need to sign
this document to proceed the transfer of title from the vendor to the purchaser.

 11) Redemption Sum: The balance outstanding on the vendor’s loan.

The total remaining amount to be paid.

 12) Retention Sum

The portion of purchase price which is retained by the stakeholder for payment of RPGT.

 13) Restriction in interest

Limitations imposed by a state authority on the seller before they can do anything with the property.
Basically, the restrictions are expressly stated on the property’s title. As example “tanah ini tidak boleh
diberi, dipindahmilik, dipajak atau digadai tanpa persetujuan pihak berkuasa negeri. Any transaction to
the land, required the consent of the land office.