Lawyer Process on Mortgage Loan
After signing Mortgage loan/ Housing loan letter offer, what is the next big step?
You will proceed with Signing SPA and loan document with your lawyer, then waiting for lawyer to transfer the property to your name. So how long the process will take and what’s the process?
Let me break it down:
- . Signing SPA
- Stage of registering property: There are 2 main stage of registering property in Malaysia.
– During singing of SPA, borrower need to provides below docs and details in order for the SPA signing to be completed
a. Detailed particular of purchaser and seller
b.Detail of the property title. (SPA, quit rent, assessment doc, letter offer and your IC)
c. Payment of the outstanding deposit 10%.
– Once all the details of SPA has been clearly informd and inspected, buyer will sign the SPA, form 14A (with title) or Deed of assignment (without title)
-Submission can be made by lawyer either manually or online submission
Deed of assignment
Valuation of property
- Is part of stamping process by stamp office
- Upon receipt of the application for valuation from stamp office, JPPH will process the application and valuation report will be prepared and sent to stamp office
- JPPH complete valuation request between 1-8 days. Usually 1 day for standard property.
Stamping of form 14A / DOA
- Stamp office will issue notice of assessment and it will indicate the stamp duty payable for transfer of property.
- Amount payable
- Payment must be made to collector of stamp duty through stamp office within 30days from the date of notice of assessment.
Penalty will be imposed if exceed 30days from the date of Notice of assessment.
- Stamp office required below docs:
- Original NOA and form 14A/Doa
- Form PDS 3
- Payment by setem hasil which shall not exceed rm500
- Checklist for registration of transfer of property at Kuala lumpur.
- Land administrator will endorse the name of buyer in registry document of title (RDT), subsequently will issue new document of title to buyer within 1 working day from date of submission
Example of the process, property with title (freehold, leasehold)
- A purchase property RM500,000 from B., A will pay earnest deposit 2% to B.
- A get loan approved, sign loan letter, while consult a solicitor to draft the SPA and loan agreement. Then proceed to sign SPA and Memorandum of transfer.
- A lawyer will represent him/her to ensure condition of SPA are favourable and his right are well protected.
- Lawyer will proceed with private land search on individual title.
- Private land search to obtain up to date information on the status of the particular land. The report is extracted from Register document of title. Will reveal extra information such as private caveat and charge and whether the land freehold or leasehold and charge.
- Lawyer have to fill up private land search form to conduct land search, with payment RM30 per title search
- Bankruptcy search, conducted at insolvency department of Malaysia. Conducted online with RM12 PRESCRIBED FEES per name searched. If A is bankrupt, he is prohibited from SPA. If B is bankrupt, SALES purchase requires official assignee’s approval (is an officer in the law court who distributes a bankrupt’s assets to the creditors. He also assists the bankrupt to relieve of his obligations to the creditors.)
- B need to settle his outstanding loan before he can sell, whereby arrangement of payment will be paid by A bank. The payment amount is known as redemption amount.
- B lawyer will request redemption letter from the bank
The whole process till final disbursement, borrower receive their vacant possession for subsales property.
The whole process will take 3-4 months for a normal subsales purchase process.The other registering process is quick, just
the consent from bank, land office takes alot of time.
Drop down below section for any inquiries 🙂