Buying Property in Penang Malaysia. How do I proceed? Once a buyer has found and decided on a property, the next step is to understand the process for acquiring the property. The following are basic steps that a purchaser follows when buying a property in Malaysia :
Purchaser pays an earnest deposit of 2% of PURCHASE PRICE upon signing of the letter of offer (Intent to purchase). After the seller signed the Letter of Intent and accept this deposit, he cannot sell the said property to any other party. This 2% will become part of the 10% deposit after the legal Sales & Purchase Agreement is signed.
The Sale and Purchase Agreement (SPA) to be drawn up by the solicitor and executed by both parties within 14 days from the date of the letter of offer. Upon signing of SPA, purchaser pays 8% Purchase Price being the balance of 10% of the sale price. (The purchaser then proceed to apply for the bank financing, if required).
Pay 90% of the remaining PURCHASE PRICE within the next 3 months from the signing date of the SALE and PURCHASE agreement. An extension of 30 days is allowed, subject to an interest of 6 % per annum on the balance sum. If, at the time of sale, the house is still charged or assigned to a bank of financial institution for the loan granted to assist the purchase of the same, a redemption statement stating the amount due needs to be obtained from the financier concerned. Usually, the redemption of the house is incorporated into the sale and purchase agreement so that part of the proceeds from the sale will be utilized for that purpose.
NOTE : In Malaysia for developer project sales or property which is under construction, there is a progress payment schedule ( Pay in stages ).
Take possession of property upon full payment and handover of keys.
In a nutshell - To summerise
1 - Sign a purchase / sale contract with the seller (vendor)
2 - Deposit funds in an escrow with the lawyer and title research is performed by the acting lawyer
3 - Execution of Transfer Deed and /or Mortgage Deed and disburse funds.
4 - The solicitor proceed to register the new owner with the Public Registry ( Land office Registry in Penang / Malaysia)
Note: In Penang, all highrise apartment "condo rules" do not allow pets dog, cat, etc. If you really need to move in with your family dog, then you have to be aware of the management rules. If there are compliant, you will have to relocate your pet, so it is advisable to look consider a landed residential house if you plan to keep a pet.
New ruling for foreigner purchaser buying property in Malaysia.
Requirement by Penang state consent. The minimum floor prices of property foreigners are allowed to buy is RM1 million and above . It means that foreigners will only be allowed to buy condo priced above RM1million and landed properties RM2 million and above. However, MM2H participants can buy up to 2 units below RM500,000 with good reason & letter of support from the Tourism Ministry.
The following particulars are necessary for the preparation of legal documentations:
1. Copy of passport(s) - owner and co-owner(s), if any
2. Correspondence address
3. Contact - house telephone no., mobile no., office no., e-mail address
Should the need arises, we can also assist to recommend you some of the bankers and solicitors that have been liaising with us on the sale & purchase matters. Once the agreements are ready for signing, the solicitors will either courier or e-mail to you for signing and at your convenience. If you have any questions on the sale and purchase transaction, or if you wish to take a loan to facilitate the purchase, or have any queries on any related topic, please do not hesitate to contact us and we will be very pleased to assist.
Documents required from vendor (Seller)
1. Photocopies of the complete set of stamped Sale and Purchase Agreement and Deed of Mutual Covenants;
2. Relevant pages of the stamped Loan Documents, i.e. Letter of Offer, Facilities Agreement, Deed of Assignment & Power of Attorney (if you have taken a loan);
3. Your Loan Account number (if you have a loan) and latest bank's statement;
4. A photocopy of the assessment receipt for 1st half year 2011;
5. Latest receipts for maintenance charges, sinking fund, quit rent, insurance and etc.;
6. Any other documents pertaining to the above property; and
7. Inventory List (if any)
If you wish us to assist / arrange a banker or a lawyer to contact you drop us a note.