What are all the
possible costs and charges when I intend to purchase an apartment/condominium?
If you purchase a new apartment directly from a developer
-
House Deposit - minimum 20% of house value or depending on the offer
-
Loan application processing fee
-
Monthly Instalment (Loan)
-
Insurance
-
Stamp Duties
-
Legal fees and costs
-
Land Office
If you purchase a sub-sale apartment from a vendor
-
Agent's Fees
-
Loan application processing fee
-
Monthly Instalment (Loan)
-
Insurance
-
Valuers' fees and costs
-
Stamp Duties
-
Legal fees and costs
-
Land Office
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Who are real
estate agents and how much should I pay for their service?
Registered Estate Agents are estate agents registered by the Board of Valuer,
Appraisers and Estate Agents, Malaysia. The latest fee for service (as at March
16th, 2000) is 3% on the first RM500,000 transacted and 2% on the residue over
RM500,000.
|
What is a
valuation report and how much should I pay for a valuers fee?
A valuation report is a report of survey carried out by the bank to ensure that
the house's value is not less than the proposed loan. For those who are
applying for housing loans from banks, a report by a Real Estate Valuation firm
recognized by the banks is needed. Between of RM300 - RM800 is a normal fee for
an average apartment valued.
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How do I pay for
the purchased unit and when should I pay?
If you purchase a new unit directly from a developer
The purchase price of the apartment shall be paid by you to the developer by
instalments as prescribed in Third Schedule of Sales and Purchase Agreement
(Schedule Of Payment Of Purchase Price). Every notice referred to in the Third
Schedule requesting for payment shall be supported by a certificate signed by
the developer's architect in charge of the housing development.
If you purchase a sub-sale apartment from a vendor
The purchase price of the apartment shall be paid as prescribed in the Sale and
Purchase Agreement between you and the vendor. You should understand and agree
with the payment manner and period of payment of the purchase price. Therefore,
you should seek your lawyer's advice for further explanation.
Third Schedule, Housing Developers (Control And Licensing) Regulations 1989
Schedule Of Payment Of Purchase Price
| INSTALMENTS PAYABLE
|
% |
Amount
|
| 1.Immediately upon the signing of this agreement |
10 |
RM
|
| 2.Within 14 days after receipt by the purchaser of
the vendor's written notice of the completion of - |
|
|
| (a)The work below ground level including piling and
foundation of the said building comprising the said parcel |
10
|
RM
|
| (b)The reinforced concrete framework and floor slab
of the said parcel |
15
|
RM
|
| (c)The walls of the said parcel with door and window
frames places in position |
10
|
RM
|
| (d) The roofing/ceiling. Electrical wiring, plumbing
(without fittings), gas piping (if any) and internal telephone trunking and
cabling(if any) to the said parcel |
10
|
RM
|
| (e) The internal and external plastering of the said
parcel |
10
|
RM
|
| (f) The roads, drains and sewerage works serving the
said building
|
15
|
RM
|
| 4. Upon handling over of vacant possession as in item
(3) and to be held by the Vendor's solicitor as stakeholder for payment to the
Vendor as follows -
|
|
|
| (a) 2.5% at the expiry of 6 months after handling
over of vacant possession |
5
|
RM
|
| (b) 2.5% at the expiry of 12 months after handling
over of vacant possession
|
|
|
| TOTAL |
100
|
RM
|
|
How can I obtain
the loan to finance my purchase?
If you are desirous of obtaining a loan to finance your unit, you should make
an application for loan to the bank or finance company.
|
How much should
I pay for legal fees?
Please be aware that the schedule for legal fees are numerous and varied, thus
it is advisable to consult your lawyers for the present calculation of the
legal fees.
Preparation of Sale & Purchase Agreement, the transfer of the property and
attending to stamping and registration.
(The fees are based on a schedule with a minimum of RM200.)
| Consideration up to RM 100,000
|
=
|
1.00 % of the purchase price |
| Consideration up to the next RM 4,900,000
|
=
|
0.50 % of the purchase price |
| Consideration exceeding RM 4,900,000
|
=
|
0.25 % of the purchase price
|
Preparation of the Loan Agreement of the property and attending to stamping and
registration.
(The fees are based on a schedule with a minimum of RM200.)
| Consideration up to RM 100,000
|
=
|
1.00 % of the purchase price |
| Consideration up to the next RM 4,900,000
|
=
|
0.50 % of the purchase price |
| Consideration exceeding RM 4,900,000
|
=
|
0.25 % of the purchase price
|
|
What is the loan
application processing fee charged?
Processing fee has to be paid upon signing the bank's letter of offer. The
usual amount ranges from RM50 to RM200 per application. However, some banks do
not charge for any processing fee during promotional periods.
|
What are the
procedures and documents required to apply for a housing loan?
You will be required to fill in an application form for the loan with the
following details:
-
Personal particulars
-
Particulars of employment/ income
-
Particulars of joint applicants
-
Financial particulars (monthly income and expenditure, assets and liabilities)
-
Particulars of loan applied
-
Details of property to be financed
-
Particulars of other loans taken form other financial institutions
-
Declaration
Documents required
-
Photocopy of identity card
-
Photocopy of the Sales & Purchase Agreement
-
Photocopy of the last Form J or EA Form
-
Photocopy of the last 3 months salary slips
-
Dated letter from employer
-
Photocopy of the last 2 years profit & loss account (if-self employed)
-
Photocopy of one year (current) housing loan statement (if refinancing)
|
What is Mortgage
Reducing Term Assurance (MRTA) and should I pay for it?
Mortgage Reducing Term Assurance (MRTA) is a scheme where you are covered for
the amount of the loan for the period of the loan. Mortgage Reducing Term
Assurance Premium is one lump sum and very often the lending institution will
arrange fire and Mortgage Reducing Term Assurance of insurance cover. If you
pass away during the period of the loan the Insurance Company which issued the
policy will pay the ourstanding balance of the repayment to the bank/finance
institution.
|
I am a
foreigner, can I buy a house in Malaysia?
Yes, you can. However any purchase of property regardless of value must be
subjected to the approval of the State Government AND Foreign Investment
Committee (FIC). Please refer to part 3.0 of this book.
|
Does the vendor
need any written consent from the developer for the sale and assignment of
his/her apartment unit to me (sub-sale)?
Yes, if the strata title has not been issued to the vendor. Immediately after
the execution of the Sale and Purchase Agreement between you and the vendor,
the vendor shall forth with apply to the Developer for written consent to the
sale and assignment of the apartment unit to you. All administrative fees for
obtaining the consent including the registration fees, whatever outstanding
interest/charges shall be borne by the vendor.
In the event written consent is refused by the developer to the vendor, the
vendor shall refund the deposit (if any) without interest to your solicitor and
the Sale and Purchase Agreement between you and the vendor shall forthwith be
null and void.
|
What is the Real
Property Gains Tax?
As a Malaysian citizen, you will be subjected to Real Property Gains Tax only
if you sell within 5 years from the date of acquiring the property. The taxable
amount is based on how long you held the property. Real property gains tax
shall be retained by your solicitor. Your solicitor is authorised to pay this
sum to the Director-General of Inland Revenue upon receipt of the notice of
assessment to procure the Certificate of Clearance.
However, if you are not a Malaysian citizen, any disposal of the property will
attract Real Property Gains Tax of 30% on the profit.
|
 |
