How to buy property in Malaysia ? 【Second-hand】
Procedure to buy property in MalaysiaWhen you plan to buy Property (house) in Malaysia, it is better to understand proper procedure to obtain. We summarize process below for sub-sale (second hand)
1. To appoint agent
Buyer should use agent to find property. It is very important to appoint good agent for buying process. You can find agent to check this KL Property Navi and other portal site.
When you decisde to select property, starting negotiation with seller about price etc, Agent will help to do it.
4. Sign Letter of Offer and pay earnest deposit
After done negotiation with seller, you need to sign LO (letter of offer ) and pay earnest deposti (2-3% of purchase price).
↓Sample of LO
5. To appoint lawyer to prepare SPA
In Malaysia, lawyer prepare SPA ( Sale & Purchase Agreement) for buyer and seller. If you do not know any lawyer, ageent will introduce proper lawyer. It takes 2 weeks to 1 month to complete SPA for signing.
※Sometimes takes more than 1 momnth due to lawywer is too detail
6. To pay 10% down payment
Buyer need to pay 10% (deduct 2-3% earnest deposit) to buyer lawyer together with signing SPA.
7. To obtain consent
Buywe need to get necessary consent as follows;
・state consent ( if buyer is foreigner)
・developer consent ( if property is under master title)
・land office consent (if property is leasehold and strat title out)
8. To pay 90% (balance payment)
After obtain all consent, need to pay 90% (balance of purchase price) witin 90 days.
※if buyer use bank loan, need to pay own fund first, then bank will release loan amount
9. Settlement outgoing payment
Buyer and seller need to settle payment as follows;
・maintenance fee & sinking fund
・assessment fee & quit rent
・rental and security deposit (if tenanted)
Lawyer and agent will help to settle it.
10. Handover the key (VP)
after settle all payment, seller need to pass all keys witihin 3-5 days (follow SPA) to buyer. Buyer need to check the unit to follow inventory list.
If property is master title, buyer need to do MOT to get strat title. Lawyer will inform you to do this.