WHAT LEGAL KNOWLEDGE SHOULD YOU KNOW WHEN BUYING A PROPERTY?

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1 WHAT LEGAL KNOWLEDGE SHOULD YOU KNOW WHEN BUYING A PROPERTY? Chris Tan Chur Pim Managing Partner advocates & solicitors registered trade mark agent

2 There is no real estate if There is no law ChrisTan 11:6

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7 BEFORE SIGNING THE LEGAL DOCUMENTS

8 CLEAR YOUR DOUBTS Due diligence: Background Check Land Search Bankruptcy Search CCM Search CTOS Search Site Visit Google it? - Know what you are buying exactly - Know who you are dealing with

9 UNDERSTAND THE LEGAL DOCUMENTS:- a) Option to Purchase b) Sale and Purchase Agreement c) Deed of Mutual Covenant (strata) d) Loan Agreement e) Charge Annexure f) Deed of Assignment g) Power of Attorney

10 Standard Agreement?

11 BEFORE SIGNING Assistance from the lawyer Details checking Ask if you are not sure Fully understand the clauses Never sign in a rush Don t sign if you are not comfortable with the clauses

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13 Never assume on the specification of the property you are getting! If it is important to you, it must be written and being part of the legal document!

14 UNDERSTANDING As is where is Wear and tear Furniture and fitting Existing tenancy

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16 PROPERTY UNDER CONSTRUCTION Inspection during delivery of vacant possession List down the defect (if any) & submit to the Developer Defect liability warranty

17 Secondary Market?

18 UNDERSTANDING THE CONCEPT OF POSSESSION Vacant Possession VS Legal Possession VS Deem Possession

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20 IMPORTANT TIMELINE IN SALE AND PURCHASE AGREEMENT Time to obtain loan Time to pay purchase price/ progressive payment Time to procure document Conditions Precedent period

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22 RIGHT AND OBLIGATION OF SELLERS/ BUYERS Termination of Agreement Forfeiture of Purchase Price Liquidated Damages Late Interest Payment

23 Who to be responsible of the delay caused by:- a) Bank b) Land Authority

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25 WHY A LAWYER? Many parties involved in the complex Conveyancing process Good Communication and personal follow up among all the involved parties is crucial for a smooth transaction The Lawyer fills the gaps of the unknown, unexpected and imperfection of the eco system *A lawyer cannot legally represent both the seller and buyer

26 Seller Lawyer Management Office Utilities Company Buyer Lawyer Local Authorities Stamp Office Seller Bank Seller Bank Lawyer Developer Buyer Bank Buyer Seller Buyer Bank Lawyer Land Office Real Estate Agent Lawyer Tax Authority

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28 Purchase Price Legal fees Acquisition Cost Stamp duty

29 CASH VS LOAN Margin of Financing Difference between Loan and Purchase Price (Differential sum) Cash Flow

30 MARGIN OF FINANCING Borrower s Entities Individual Joint Company Limited liability Partnership MACTHING WITH Types of Properties Residential Commercial Industrial Agriculture

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32 DISPUTE IN THE SALE AND PURCHASE AGREEMENT Self help? Seek recourse in the court of law Engagement of lawyer Homebuyer Tribunal

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34 UNDER CONSTRUCTION VS SECONDARY MARKET

35 Late Payment Interest Progressive payment (10% pa under HDA) Balance purchase price (8% or 12%)

36 Seller or buyer to be responsible for late payment? If seller contribute to the delay? If bank contribute to the delay?

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38 Maintenance fees/ Service charge (Strata) Sinking fund (Strata) Outgoings & Utilities a) Quit rent b) Assessment c) Sewerage d) Electricity e) Water Change Account and Deposit

39 FREE

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43 ****LAUNCHING SPECIAL**** KCLAU Order STRATA ChrisTan.my Special Discount with Complimentary Ticket to PRISM (only from to )

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