Transferring ownership of something as important as a property requires some crucial legal steps.
Here are the 5 key steps in the legal process of buying a house, and the documents that go along with them.
1. Home Loan
Searching for the right home loan is the first step towards owning a property, unless you’ve got really deep pockets, of course! It’s also the perfect point to contract a legal professional to help with the process. However, it is not compulsory to hire a legal professional if you think you can handle it yourself.
2. Letter Of Offer (LO)
At the start of the purchasing process, and you’re keen to put your name down for a property.
The Letter of Offer is a document which sets out your initial desire to purchase, and a seller’s willingness to sell.
It notes things such as the agreed selling price, relevant furnishings, and the date by which the SPA should be signed.
3. Sales And Purchase Agreement (SPA)
The SPA is a comprehensive agreement setting out the terms and conditions of a purchase.
This important document sets out conditions such as the date of transfer, conditions of purchase, items included in the sale, as well as other relevant terms.
4. Facility Agreement
Don’t worry, this isn’t about setting out your access to the swimming pool and gymnasium.
This is the legal document to officially confirm the home loan agreement that you have signed with your bank.
5. Memorandum Of Transfer
Now this is the time for you to sign your Memorandum of Transfer, or the less excitingly titled ‘Form 14A’. MOT in Malaysia is the document which legally confirms the actual transfer of ownership.
It’s the legal equivalent of handing you the keys to the front door and saying the property is yours.
These are the 5 main procedures you need to know in buying a house. However, it should be noted that there are many other minor procedures and legal documents involved.
