Malaysia Real Estate

eyegel · Joined: 06 Jun 2005 Posts: 60 Location: Petaling Jaya

This is the first time buying a condo/property. My agent said taht I have to prepare a check of 3 % of teh selling price and the check must be payable to the real estate agency. Is this the normal procedure? Should I ask her for any documents? My agent said that I need to sign a document and tehn she will have the owner to sign. Is it possible for me to get my lawyer to laise with the agent or the seller's lawyer? Please advise.

Wink

winter · Joined: 20 Jun 2005 Posts: 134

well,it think it will be reasonable for you to pay them at the end of the whole transaction..ie when u become the owner of the house.

when you pay her,try to get a receipt..esp so if you pay cash.Pay cheque is best...and pay to agency,not cash cheque or in her name. I know of some agents who did not submit the payment to their company and pocket the whole amount themselves...then after that the real estate agency thought that the buyer/seller did not pay yet and go after them for payment.

1st,find out what document she ask u to sign...pls dun anyhow sign.It will be good to get your lawyer to represent and advise you. Smile

Banzai · Joined: 25 Oct 2004 Posts: 3368

Procedure and practice may vary.

The general practice is this (procedure is something else) =>
1) the document she said you will be signing is known as the option to purchase whereby you put in a deposit which will be held by her company. There are variations to this. This deposit is _usually_ a percentage of the sale price.
2) During this period, Buyer sources for lawyer and is given 3 months to complete the S&P.
3) Upon completion of S&P, the agent's commission is usually deducted directly from this deposit.
4) Remaining of 10% minus deposit is payable to Seller upon signing of S&P.
5) Remaining of purchase price is to be undertaken as a portion of cash or loan and will be disbursed accordingly.

There are all kinds of variations. Bear in mind this is the vanilla deal, there are other types of "off the record" type transaction which may change things.

hm · Joined: 01 Jul 2005 Posts: 53

Procedure to Buy

Pay an earnest deposit of 3% PURCHASE PRICE upon signing of the Letter Of Offer / acceptance.

Pay 7% Purchase being the balance of 10% of the sale price within 14 days fromthe date of acceptance and upon signing the SALE and PURCHASE AGREEMENT.

Pay 90% of the remaining PURCHASE PRICE within the next 3 MONTHS from the signing date ofthe SALE and PURCHASE AGREEMENT.

Take possession of Property upon full payment

Banzai · Joined: 25 Oct 2004 Posts: 3368

Hm, I think the Purchaser take possession after the Seller receives the balance of 90% which is not financed by the Purchaser. The lawyers will assume the financed amount from the Bank will come.

So it can be as early as loan approved for 80%=> Buyer pays another 10% => S&P completed => Buyer takes delivery. Then again, this is what i was told when i facilitated a sale a few years back under a PA.

hm · Joined: 01 Jul 2005 Posts: 53

Obviously our experienced were different. Nonetheless, I hope this would provide additional information to others.

ryyc · Joined: 09 Aug 2005 Posts: 14

Noor713 · Joined: 15 May 2005 Posts: 507 Location: Sri Hartamas

It can be any number of days.

If I act for the Owner, I'll put it this way....`within seven (7) working days'. But if I act for the Purchaser, it'll be different - `within seven (7) days'.

Cheers!

mercuri · Joined: 03 May 2005 Posts: 4601 Location: KL

Noor713 · Joined: 15 May 2005 Posts: 507 Location: Sri Hartamas

at merc

Well...only sometimes... Wink

fattymeow · Joined: 31 Jul 2008 Posts: 6

derrick · Joined: 06 Nov 2007 Posts: 5

Hi everyone, since we are at it, can we also talk about the procedures between a landlord and real estate agent with regards to renting out a property?

What is the normal agent fee rate?

jess0926 · Joined: 13 Aug 2008 Posts: 9 Location: Subang

Usually the 1st month rental will be pay to the agent as their commission. This is standard to all the agent.