The following is the basic guideline for fledgling buyers who intend to purchase their very first real property in Malaysia. This guideline applies to those purchasing directly from the developer of the project:
- Once booking has been made with the real estate agent, the purchaser(s) will proceed with the signing of Sale and Purchase Agreement and Deed of Mutual Covenants (four sets for each document). An attorney must present to attest the purchaser’s signature to avoid any fraudulent acts.
- Secondly, the vendor/developer/proprietor (depending on the circumstance of the project) of the land under development will then execute both sets of document. Once done, the documents will be stamped (RM 10.00 each). The next step is dependent on whether the buyer purchases the property by cash or resorts to a bank loan instead.
- For the former, the whole process ends at the above stage, provided the buyer has given full monetary consideration. In the latter scenario, the purchaser (known as the “borrower” hereafter) who lends money from the financial institutions will need to execute another set of document, i.e. the loan agreements.
- After the borrower(s) have signed the agreements, the bank will duly execute the documents. Next, it will be delivered to vendor/developer/proprietor to endorse as well. The agreements will then be stamped (0.5% of the amount borrowed from the bank).
- Next, the Power of Attorney must also be filed at the High Court. Once done, the attorney will submit all the original documents required by the bank; advising the financial institution to disburse the loan to the vendor/developer/proprietor of the property progressively.
- After certain period of time (usually 2-3 years later), the strata title will be issued and the reassignment of the property will then take place. The property is now officially owned by the purchaser(s) as their names will appear on the strata title.
