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of Sales |
Properties available for purchase from Sellers or Developers may be existing (i.e. already completed) or pre-sale (i.e. under construction). In a pre-sale, the purchaser pays in progress payment terms (i.e. in instalments in accordance to the stage of construction works completed). For Existing(already completed) properties, the Seller will given an Option To Purchase to the Buyer. The Option To Purchase gives the purchaser the sole right to buy the property for a limited period, usually 2 weeks-4weeks. To secure this right, the buyer pays a down payment,term an option Fee/Money, which usually amounts to 1% of the Purchase Price.The Purchaser should seek legal advice on the term of the option to Purchase before paying the option fee. Upon the acceptance if the Option to Purchase, the terms of the Option to Purchase will become the term of a binding contract. Upon exercising the Option to Purchase, the Option Fees/Money Becomes part of the total amount of Down Payment. If the option to Purchase is not exercised within the period stipulated, the option Fee/Money is forfeited by the seller
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Down Payment |
Usually equivalent to 10% of the Purchase Price, paid to the Seller when the parties (Buyer and Seller) enter into a binding contract, i.e. when the Purchaser signs and returns the Option to Purchase to the Seller.The Binding contract will stipulate the schedule of payment for the balance sum of the purchase price, usually 3 month for completion. Subject to agreement between the parties, an extension of another 3 months is normally granted with Buyer paying interest for the outstanding sum owning.
Presale Properties-applicable to uncompleted properties(i.e. properties under construction) sold by Developer
the terms regarding progress scheduled payment and rights of the Buyer and obligations of the Developer are spelt out in accordance to the Housing Developers(Control and Licensing) Act 1966 and subsequent revisions.
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Progress Payment |
Applicable to pre-sales units, i.e. properties under construction.
After the payment of the first 10% of the Purchase Price, the remaining 90% of the Purchase Price is payable in stages in accordance to the progress of construction.
Presale Properties-applicable to uncompleted properties(i.e. properties under construction) sold by Developer
the terms regarding progress scheduled payment and rights of the Buyer and obligations of the Developer are spelt out in accordance to the Housing Developers(Control and Licensing) Act 1966 and subsequent revisions.
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Completion
of Sale and Purchase |
For Completed Properties sold by Sellers or Developers; or Uncompleted Properties (i.e. properties under construction) sold by Sellers.
Usually between 10 to 12 weeks from the date of exercise of the Option to Purchase. The Sale and Purchase is completed when the Buyer' s lawyers hand the balance of the Purchase Price to the Seller 's lawyers in exchange for
In the case of completed properties,
(i) documents transferring the Title of the Property and
(ii) keys to the Property (for vacant units).
In the case of uncompleted properties,
(i) a Deed of Assignment in the Purchaser' s favour in respect of the Seller 's rights, title benefit and interest relating to the Property, and
(ii) a fresh Sale and Purchase Agreement between the Developer and the Purchaser.
(iii) a copy of the Letter of Authority authorising the Developer to credit all monies paid by the Vendor to the credit and account of the Purchaser.
For Properties Under Construction Sold by Developers
Upon the approval and issuance of the legal title of the property by the government authorities, and the payment of all the progress payments, the legal title will be issued to the Purchaser.
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Defect
Liability Period |
In the case of pre-sale properties, the Purchaser is given a one-year defect liability period commencing on the day of hand over of the completed unit, during which the Developer is liable for any defects in the property.
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Carpark
Provision |
For commercial properties, season parking lots are usually allocated based on the size of the unit. Usually 1 carpark lot is allocated for every 1,500 sq ft. Car parking charges ranges from RM100 to RM150 per lot per month.
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Price Trends of Properties
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