Irrespective whether you are an
experience property buyer or a first time buyer, the below advice would benefit you in whatever way. First time buyer is good to understand
carefully the legal procedure before buying any property. A professional
estate agent shall give you the right advice.
When you decided to buy a property, the estate
agent will get
you to sign a letter of offer (or agreement to purchase form) and you've have to pay the booking fee. After that
you need to engage a solicitor to prepare for the S&P. Below are the
brief description of the procedures.
Letter of offer
You have to sign a letter of offer to buy the
said property and pay an earnest money or booking fee (normally 2%-5%) of the total
property price. After that the owner will need to sign the same letter
of offer to confirm the purchased.
The earnest money will be kept by the
Registered Estate Agent as stakeholder on a trust account (or
sometime we called client's account)
until the Sale and Purchase Agreement (S&P) has been duly signed &
The buyer will then has to engage a solicitor or
lawyer to prepare the S&P, whereas the owner's solicitor has to liaise
with the buyer solicitor until the S&P is ready to sign. Sometime
buyer's solicitor will also act as the owner's solicitor. After signing, the
solicitor will do all the necessary searches to confirm the ownership of
The timeframe for signing the S&P will normally take
2 to 3 weeks after the signing the letter of offer, depending on the
Executing the Sale and
Purchase Agreement (S&P)
The S&P will outline all the details for the transfer
and specify all the terms and conditions. Upon signing the S&P, you shall
pay the balance of the 10% to the owner- in this case is 7% (10%-3%
paid). Normally the acting lawyer will also ask you to pay their legal
fee, stamp duties and all necessary fees.
As a standard practice, the payment term for the
balance of the 90% is 3 months after signing the S&P plus 0ne(1) month
extension with interest.
State authority consent
State authority consent apply only to the
transfer of leasehold properties. Your solicitor will arrange all the
necessaries for the transfer until complete. Normally this will take 3
to 6 months depending on the difference state authority and procedures.
Other important matter
When the said property has been transferred to you,
there are few things you need to do it yourself. There are: transfer
previous owner to your name for electricity (TNB) account, Water (Syabas)
account, assessment and misc. This is to avoid future unnecessary