Guides for Buying a House in Malaysia

Buying Property in Malaysia. Standard procedures. How do I proceed?

Once a buyer has found and decided on a property, the next step is to understand the process for acquiring the property. The following are basic steps that a purchaser follows when buying a property in Malaysia:

Step 1

Purchaser pays an earnest deposit of 2% of PURCHASE PRICE upon signing of the letter of offer (Intent to purchase). After the seller signed the Letter of Intent and accept this deposit, he cannot sell the said property to any other party. This 2% will become part of the 10% deposit after the legal Sales & Purchase Agreement is signed.

Step 2

The Sale and Purchase Agreement (SPA) to be drawn up by the solicitor and executed by both parties within 21 days from the date of the letter of offer. Upon signing of SPA, purchaser pays 8% Purchase Price being the balance of 10% of the sale price. (The purchaser then proceed to apply for the bank financing, if required).

Step 3

Pay 90% of the remaining PURCHASE PRICE within the next 3 months from the signing date of the SALE and PURCHASE agreement. An extension of 30 days is allowed, subject to an interest of 5 % per annum on the balance sum.

If, at the time of sale, the house is still charged or assigned to a bank of financial institution for the loan granted to assist the purchase of the same, a redemption statement stating the amount due needs to be obtained from the financier concerned. Usually, the redemption of the house is incorporated into the sale and purchase agreement so that part of the proceeds from the sale will be utilized for that purpose.

Step 4

Take possession of property upon full payment and handover of keys.

In Malaysia for developer project sales or property which is under construction, there is a progress payment schedule ( Pay in stages ).

In a nutshell - To summarize

1 - Sign a purchase / sale contract with the seller (vendor)

2 - Deposit funds in an escrow with the lawyer and title search is performed by the acting lawyer firm

3 - Execution of Transfer Deed and / or Mortgage Deed and disburse funds.

4 - The solicitor proceed to register the new owner with the Public Registry ( Land office Registry in Penang / Malaysia).

Note: In Malaysia, all high-rise apartment "condo rules" do not allow pets dog, cat, etc. If you really need to move in with your family dog, then you have to be aware of the management rules. If there are compliant, you will have to relocate your pet, so it is advisable to look consider a landed residential house if you plan to keep a pet.

The By-laws of the Strata Title Act state that a parcel proprietor is not allowed to keep any animal in his parcel or on the common property which may cause annoyance to any other proprietor.