Property Lawyer near Me

Mr. Dylan Chong giving a seminar on "What should you know about strata title"? at Reapfield Damansara Perdana on 02.02.2024. Participants around 30-40 people (mostly internal senior property agents).

Sale and Purchase Agreement

• Sale and Purchase Agreement ("SPA") is the common agreement to govern the relationship between a Seller/Vendor and Purchaser/Buyer.

• The Sale and Purchase Agreement Governs the timeline that the Purchaser has to comply to ensure that the Purchaser's payment is paid on time (usually within 3 months upon consent approved or upon sale and purchase agreement being stamped).

• The SPA will consists of the following clauses 

  • Payment Clause - usually it will state the earnest deposit, balance deposit and balance deposit payable by certain dates

  • Condition Precedent Clauses - this will state when does the agreement becomes unconditional. An agreement with condition to fulfill does not allow the time to start to run. Therefore, the parties to the SPA has to apply and obtain the approval under the condition precedents. 

  • RPGT Clauses - this determines whether the seller has to pay RPGT if the property is disposes off within the first five years from the date of him acquiring the property.

  • Late payment interest clause - if the buyer delays in advising his bank to disburse the money or fails to pay balance purchase price on time, there will be a late payment interest imposed of 8% per annum. Why? this is because the Vendor/Seller may have to pay extra on the Vendor/Seller bank's instalments.

  • Representations and Warranties Clauses -  the Seller and Buyer has to represent that they are not bankrupt, or they have promised certain things such as to repair the house and etc. The promise becomes a representations within the SPA's clause.

  • Apportionment of Outgoings of Utilities - the outgoings of utilities such as water, electricity bills, rental (if tenanted), JMB's maintenance fees, and etc have to settled before the vacant possession is delivered (delivery of key from seller to buyer). Moreover, the change of ownership is also important where the buyer has to go to the respective government bodies/offices to change the ownership to their name so that the utilities bills are not issued under the Vendor/Seller's name.

Loan Agreements

We provide services to prepare loan agreements, and we have access to RHB, Public Bank Berhad, Hong Leong Bank Berhad, CIMB, Maybank and etc.

We also help to do discharge of charge, presentation of title and etc.

Perfection of Title

For a Property transactions, you will need to do a perfection of title ("POT"). POT means the process to transfer the title from Party A to Party B. usually when you buy a property from the Developer, you need to transfer the property title from Developer to your name. 

You then need to engage a lawyer to prepare a Memorandum of Transfer ("MOT"). Then to pay Stamp Duty MOT based on the scale rate or if you are entitled to any stamp duty exemption.

Perfection of Charge

Perfection of Charge is the process where you need to charge the title which has been registered under your name being a security that you undertake to give the bank.

Otherwise, why would the bank wants to loan you the money if they cannot auction your house if you default in your repayment of bank loan.

We assist home owner to do process of Charge and Discharge.

Discharge of Charge / Deed of Receipt and Reassignment

After you have paid off your bank loan, you need to do a process call discharge of charge (for property with title) or a redemption process (for property without title).

Real Property Gains Tax ("RPGT") & Income Tax

Buying a Property will attract tax implications either in the form of RPGT or Income Tax

• RPGT - you need to pay RPGT if you sell off your property within the first 5 years. Please consult us to get legal & tax advisory when you dispose off your property

• Income Tax - if you keep buy and sell property, you may attract income tax. This is call trading. The sale and purchase agreement has to be drafted well to show the intention of holding the property as investment and not trading.

Can I use my EPF savings to buy house?

• Yes, we also advise client on how to get EPF withdrawal if they decide to purchase property. The procedure is different if the property is a property with title and property without title.