Simplified steps to Buying A House In Malaysia

The process of buying a house in Malaysia involves several steps, from property search to completing the transaction. Here's a general outline of the process:

1) Property Search:
Begin by searching for properties that match your preferences and budget. You can use real estate websites, work with real estate agents, or explore new developments.

2) Property Selection:
Once you've found a property you're interested in, arrange a viewing to assess its condition, location, and suitability.

3) Negotiation:
If you're satisfied with the property, you can negotiate the price and terms of the purchase with the seller or the seller's agent.

4) Letter of Offer:
Once both parties agree on the terms, you'll need to sign a Letter of Offer or Sale and Purchase Agreement (SPA). This agreement outlines the terms, conditions, and price of the property.

5) Booking Fee:
Upon signing the Letter of Offer, you'll likely need to pay a booking fee (usually around 2-3% of the property price) to secure the property. This fee is refundable if the sale doesn't go through.

6) Loan Application:
If you're financing the purchase with a home loan, start the loan application process with your chosen bank. The bank will evaluate your financial situation and property value before approving the loan.

7) Sales and Purchase Agreement (SPA):
The SPA is a legally binding document that outlines all the terms and conditions of the sale, including the payment schedule and transfer of ownership. A lawyer will usually prepare the SPA, and both parties will sign it.

 

8) Payment of Deposit:
Upon signing the SPA, you'll need to pay a deposit, typically around 10% of the property price. This amount is held in escrow until the property's transfer of ownership is completed.

9) Property Inspection and Due Diligence:
Your lawyer will conduct various searches and due diligence to ensure the property has a clean title and no outstanding debts or legal issues. This step helps ensure you're making a safe purchase.

10) Loan Approval:
Once your loan application is approved, the bank will provide you with a Letter of Offer outlining the loan terms and conditions.

11) Stamp Duty and Legal Fees:
You'll need to pay stamp duty and legal fees, which are based on the property's value and the SPA. These fees are usually the buyer's responsibility.

12) Completion of Sale:
On the agreed-upon completion date, the remaining balance of the property price is paid, and the ownership of the property is transferred to you. The transfer is usually done at the land office.

13) Transfer of Ownership:
Your lawyer will handle the transfer of ownership by registering the property in your name at the relevant land office.

14) Collecting the Keys:
Once the ownership transfer is completed, you can collect the keys to your new property and take possession.

It's important to note that the exact process might vary based on the location, type of property, and specific circumstances. Hiring a qualified lawyer and working with reputable real estate professionals can help guide you through the process and ensure a smooth transaction.

Posted on 21-Aug-2023