Buying a property is one of the greatest moments in one's life because it signifies that you are matured and capable enough to create a change to your life. However, legal matters are unavoidable and one must know pretty well on this to avoid any unnecessary incidents happen on oneself. On top of that, you should also know the exact amount of legal fees, stamp duty, disbursement fees, and other miscellaneous fees involved before you place a booking deposit. You ought to make sure that you have the required amount of money to proceed further in order to own the property successfully.
After you place a booking deposit, you should proceed for loan application. You may want to read on our article about how to increase your chance for loan application approval. Once you obtain the Letter Of Offer from bank, you sign the offer letter and then lawyer can proceed to prepare your Sale and Purchase Agreement (SPA or sometimes named as S&P) together with Loan Agreement (LA) and Deed of Mutual Covenant (DMC) etc.
Basically there are four main parts of fees that a purchaser should pay when you purchase a property:
- SPA legal fee
- Loan Agreement legal fee
- Loan Stamp Duty
- Memorandum Of Transfer (MOT)
All these items are charged on tier according to your property price. You can easily download some mortgage loan calculator from App Store and PlayStore or google them online. You would have a rough idea on how much should you prepare for X price tag property. For example, in order to purchase a RM500,000 property, you should prepare approximate RM20,750 for all the four items listed above. However, in one of our discussions on how to buy a property in Malaysia, we managed to get Mr X a good deal. Instead of paying RM20,750 for legal fees and stamp duty, he only needed to pay RM9,000 for MOT, the other 3 items are FREE! Wouldn't you want something like this? Sometimes, if you are lucky enough, you may strike the best deal where developer fully absorbs all the fees for all the four items mentioned above. You pay NOTHING! If you want a good deal like this, don't forget to hit the button below and get connect with us.
If you are looking for a smooth journey in real estate investment, you should have a good networking with all the parties involved such as real estate consultants, bankers, lawyers and developers. This will not only give you good monetary advantages, but they are able to smoothen your investment journey and give you less headache.
~~~ "YOUR NETWORK = YOUR NET WORTH" ~~~