- Your Budget
You need to be clear that your budget does not only confine to 10% deposit of your dream house but it should also include other costs that you will have to incur such as legal fees, stamp duties and government service tax. Normally, you would have to spare some cash around 15-20% of the total purchase price for these purposes.
- Loan Eligibility
Financial institutions offer the amount of loan of 90% of the property’s price for first and second time buyer. However, the banks will first determine whether to approve or reject your loan application by considering your debt-to-service ratio, also known as DSR, CTOS and CCRIS reports. This is essential for the banks as they need some guarantee that you are financially fit and capable of repaying the loan.
- Status of the Property
You should know whether the property you intend to purchase is under master title or individual/strata title. Each title requires different processes in completing the selling and purchasing transaction.
- The Basic Process of Sale and Purchase Transaction (Sub-sale)
There are two types of sale and purchase of property in Malaysia; purchase from the developer & purchase from the subsidiary market or commonly known as sub-sale.
The standard completion date given for the conclusion of a sub-sale transaction usually would be 3 months from the date of the SPA provided there is no encumbrances on the land title.
Here’s an overview on the basic process of the sub-sale transaction and the services of which you are paying for, that you need to know:
a) Drafting and execution of Sale and Purchase Agreement (SPA)
b) Signing of SPA and other related legal documents
c) Payment of 10% deposit upon signing
d) Stamping of SPA
e) Complying to the pre-conditions of the SPA by the owner and purchaser (if any)
f) Adjudication of memorandum of transfer (MOT) for stamp duty assessment
g) Discharge of charge (if the land is still subjected to a charge)
h) Registration of MOT and other related documents at Land Office
i) Payment of balance purchase price
j) Delivery of vacant possession
k) Changing name on the bill and assessment receipt
*The above information is intended for general information purposes only. You are highly advised to seek for legal consultation from a conveyancing lawyer for more details*