Buying A Property from....

In Malaysia, you can buy a property from either the Primary Market or the Secondary Market. All the terms and conditions of buying property from both market are as below.

Primary Market (Developer)
Purchase of residential property directly from developer is using the Schedule G (for landed property under construction) or the Schedule H (for non-landed building under construction), Schedule I (landed property under the build then sell scheme) or Schedule J (non-landed building under the build then sell scheme) respectively of the Housing Development (Control and Licensing) Act 1996 (HDA) as the Sale and Purchase Agreement (SPA).

Payment of the purchase price under the Schedules G & H is by payment of 10% upon of signing of SPA and the balance 90% to be paid progressively based on completion of work as certified by the Architects. Payment of the last 5 % of the purchase price will be held by a solicitor firm appointed as stakeholders for the defect liability period, which is currently 24 months from the delivery of vacant possession (VP).

Payment of the purchase price under the Schedules I & J is by payment of 10% upon signing of Sale and Purchase Agreement and the balance 90% to be paid upon completion. The 24 months defect liability period stays.

Secondary Market
There are no fixed rules on the form of agreement for purchases from existing house owners (commonly know as sub-sale). Normally 10% of the purchase price is payable upon signing of Sale and Purchase Agreement (SPA) and the balance 90% to be paid within 3 calendar months with an extension of 1 calendar month is the new buyer fails to settle the full purchase price within the given time. An interest of 10% per annum calculated on daily basis is normally being charged for the extended period. All the payments are usually made to the lawyers acting for the seller as stakeholders to ensure redemption of the house.