Steps to Buy/Sell
Step 1
As the buyer, you have to find the property. And negotiate the price with owner. After you have made your decision, you are required to fill in an application form (temporary sale & purchase agreement) prepared by the agents and pay the booking fees (min 1% or more). A receipt will be given to you after you pay the booking fee. If you, as the buyer go back on your word, the seller has the right to confiscate the booking fee. Otherwise, the seller has to double pay the booking fee to you if he or she goes back on his or her word. Normally you have 2 weeks time to settle the balance of 10% upon signing the Sale & Purchase Agreement.
Step 2
You have three choices:
1: You provide the financial documents to the broker. They will assess your credit, income and assets to quickly determine what loans you qualify for.
2: You provide any relevant details and financial documents to the broker.
3: You must authorize your own lawyer on your behalf to running the S & P.
Document prepare by the Vendor (pass to the lawyer or the broker)
- identity card
- photocopy of Sale & Purchase Agreement
- quit rent receipt, assessment receipt, PBA receipt, TNB receipt
- sinking fund receipt
- loan statement
Note. Your solicitor should be fully responsible for the purchase of your house, and do not share the same solicitor with the seller, as a conflict of interest may occur.
Step 3
All the relevant financial documents will attach to the application form and submit to the bank for approval.
Step 4
After 7 days, as the bank reply the approval, loan will be processed and an offer letter will be prepared. The buyer needs to sign the offer letter.
Step 5
Before signing the Sell & Purchase Agreement, both parties can decide the date of settling the rest of the deposit. Normally, the buyer is given three months for settling the rest of the deposit. The buyer can request the seller to extend for one month. However, within this one month, the buyer has to pay the interest that is calculated per day. The amount of the deposit depends on the amount of the loan. For example, if you loan 70%, you are required to settle 30% deposit within three months.
Step 6
The buyer will hand over the deposit to the lawyer for settling the ransom from the bank or financial company and property tax in order to redeem the property. Then the process of transfer can be carried on.
Step 7
As the property is being redeem and the seller has settled the property tax, the lawyer will submit the transfer form to the Land Service for registration. If the transfer form is approved, the lawyer will hand over the rest of the deposit to the seller. At the same time, the seller has to pass the right of the property to the buyer as final realize.
