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Developer push me to sign S& P

 
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ysprealestate



Joined: 20 Jan 2011
Posts: 1
Location: Melaka

PostPosted: Mon Feb 07, 2011 1:25 pm    Post subject: Developer push me to sign S& P Reply with quote

I recently have booked a shop lot and have paid RM10K as a down payment. It was paid around Nov 2010, and after that I have submitted all document required for the bank loan. Later the bank called me that they cannot process the loan since after they have done a land search, they found out that the land use is "UNTUK BANGUNAN PASAR SAHAJA". According to the bank they cannot process the loan if the land use is "UNTUK BANGUNAN PASAR SAHAJA". This is a leasehold property.
Now I am still waiting for the conversion letter from the developer, and according to them it will takes about 2 to 3 months for the conversion letter to be approve and done, so the loan will be on hold until they get the conversion letter.

Now, the S & P is ready and the developer keep pushing me to go and sign the S & P, and I told them that I will not sign it until I get my loan approve because I know that once I sign the S & P, they start to ask for money, and if the bank loan delay, I will have to pay the late payment charges.

MY QUESTION:
1. Can developer sell the property without getting the conversion done?
2. Can they sell the property if the land use is "Untuk Bangunan Pasar Sahaja"?
3. Can the developer sell the property to other prospect if I still not sign the S & P?
4. How long can I delay to sign the S & P?
5. Will there be any kind of penalty if I refuse to sign the S & P due to that?
6. If the developer sell the property to other, how can I get back my down payment?

I hope that someone out there can help me on this issue as quick as possible, since the developer keep pushing on me.

Thank you

Best regards,
Patrick P
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hfchuraymond



Joined: 11 Jun 2009
Posts: 606

PostPosted: Wed Feb 16, 2011 3:20 pm    Post subject: Reply with quote

Check for other encumbrances on the property ie. any registrar caveat, private caveat etc.

From what I know, it is the land office to approve any changes on the land title. That can take years ! Even the issuance of final title can takes years after the qualified title is issued.

Better check again with the land office ! The cukai tanah must be calculated and who else can do the calculation better than the land office.
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cynthusc



Joined: 16 Sep 2005
Posts: 504

PostPosted: Tue Mar 22, 2011 3:37 pm    Post subject: Re: Developer push me to sign S& P Reply with quote

ysprealestate wrote:
I recently have booked a shop lot and have paid RM10K as a down payment. It was paid around Nov 2010, and after that I have submitted all document required for the bank loan. Later the bank called me that they cannot process the loan since after they have done a land search, they found out that the land use is "UNTUK BANGUNAN PASAR SAHAJA". According to the bank they cannot process the loan if the land use is "UNTUK BANGUNAN PASAR SAHAJA". This is a leasehold property.
Now I am still waiting for the conversion letter from the developer, and according to them it will takes about 2 to 3 months for the conversion letter to be approve and done, so the loan will be on hold until they get the conversion letter.

Now, the S & P is ready and the developer keep pushing me to go and sign the S & P, and I told them that I will not sign it until I get my loan approve because I know that once I sign the S & P, they start to ask for money, and if the bank loan delay, I will have to pay the late payment charges.

MY QUESTION:
1. Can developer sell the property without getting the conversion done?
Yes they can. You must make sure that the agreement specifies clearly that the sale is subject to the conversion be effected.

2. Can they sell the property if the land use is "Untuk Bangunan Pasar Sahaja"? Same answer as above. They can sell the Property but the Purchaser can only build a building for a market only
3. Can the developer sell the property to other prospect if I still not sign the S & P?
Yes they can. But don't sign just because of this because if you buy a property that is subject to a restriction, you are bound by those restrictions.
4. How long can I delay to sign the S & P?
You can delay as long as they are willing to still sell it to you unless they have imposed a deadline for you to sign and you have agreed to that deadline.
5. Will there be any kind of penalty if I refuse to sign the S & P due to that?
It depends on what was agreed when you paid the downpayment. Was there an offer to purchase signed? Did you agree to sign within a period of time? Is the signing subject to agreement on the terms of the SPA.
6. If the developer sell the property to other, how can I get back my down payment?
Same answer as No.5

I hope that someone out there can help me on this issue as quick as possible, since the developer keep pushing on me.

Thank you

Best regards,
Patrick P


Be careful when buying commercial properties especially properties not covered by the Housing Developers Act. For such properties, the terms of the SPA must be comprehensive to cover matters that are important to you. Make sure that the agreement has conditions that protect you and that requires the Developer to not only convert the restriction in the title but to ensure that the approval of the State Govt is obtained since this is a leasehold property. Get a good lawyer.

Regards
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hfchuraymond



Joined: 11 Jun 2009
Posts: 606

PostPosted: Tue Mar 22, 2011 4:50 pm    Post subject: some suggestion Reply with quote

All your questions cannot be answered until and unless you put these questions before the land office.

Your answers are as sound as it be from the horse's mouth.

The best of advices will be the ones obtained directly from the land office, specifically with regards to your matter. Every locality and location depends on the people and the surrounding aspects with regards such issue. Also, the availability of other factors are important. These are best sorted out there.

You don't wish to be an afterthought somehow.
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