WHAT IS THE NEXT STEP AFTER SIGNING THE SPA? ARE THERE ANY OTHER DOCUMENTS THAT ONE SHOULD BE AWARE OF?
The seller will have to ensure that all fees such as quit rent, assessment, sewerage fee (Indah Water) had been paid up-to-date before the lawyer can proceed to transfer the property to the purchaser. Purchasers, on the other hand, must ascertain that their bank loan has been approved and sign the bank loan letter of acceptance. If it is a cash deal, he or she must prepare the remaining amount of cash to be paid to the seller, i.e: after deducting the down payment amount which had been paid to seller upon signing the SPA.
HOW DOES ONE APPLY FOR A FIRE INSURANCE POLICY FOR HIS OR HER PROPERTY AND IS A MORTGAGE LIFE INSURANCE (MRTA) NECESSARY?
Usually, the mortgage officer from the bank will arrange for the purchase of a Fire Insurance for the buyer upon application and acceptance of the bank loan. Most officers will encourage buyers to purchase an MRTA. Although it is not compulsory, it is a recommended step as an MRTA will provide for the full settlement on the outstanding balance of the housing loan amount in the event of any unforeseen circumstances such as death or total and permanent disability of the purchaser prior to the settlement of their mortgage. WHAT ARE SOME OF THE THINGS THAT THE LAWYER MUST DO WHEN PAYING THE BALANCE PURCHASE PRICE? The lawyer must confirm that the name of the seller had been transferred to the purchaser (register of title). Besides that, the redemption of the seller’s mortgage and all other fees must be settled prior to paying the remaining balance amount of the purchase price to the seller.
WHAT IS “DELIVERY OF VACANT POSSESSION” WHEN IT COMES TO PRIMARY PROPERTY AND HOW DOES ONE DEAL WITH IT?
Vacant possession (VP) is the condition of a property where it is fully completed but not fit to be occupied.
To protect buyers’ interest, developers are required by law to obtain proof in the terms of a certificate by an architect, which certifies that the building is ready for water and electricity connection before issuing said VP.
On top of that, the application for Certificate of Fitness for Occupation (CFO) will need to be submitted and accepted by the state authority before developers can hand out VP of housing units.
The delivery of vacant possession will be instructed by the lawyer after everything has been settled and transferred from the seller to the purchaser and all after outstanding amounts have been settled by the buyer.
This article was first published in the iProperty.com Malaysia July 2016 Magazine. Get your copy from selected news stands or view the magazine online for free at www.iproperty.com.my/magazine. Better yet, order a discounted subscription by putting in your details in the form below!