Steps to owning a house in Malaysia / How to buy a house @ Home at Kuala Lumpur

Home Buying Guide

A : STEPS TO OWNING A HOUSE

1.    Letter of offer
Upon selecting the unit, we will issue you a letter of offer and the receipt for the initial 10% down payment. The letter of offer shall detail the particulars of the property that you have purchased. 

2.    Sale & Purchase Agreement (“SPA”)
You must execute the SPA at appointed solicitor’s office upon settlement of the 10% down payment.

3.    Loan and EPF withdrawal
We will assist you in applying for housing loan from our panel end-financiers. For those who are EPF members and would like to make withdrawal from your EPF account, you will have to obtain EPF withdrawal Form from EPF office or download the Form from the EPF website at http://www.kwsp.gov.my

4.    Letter of offer on loan
Upon approval of your loan, the end-financier will issue a Letter of Offer which usually must be accepted or acknowledge by you within 14 days.

5.    Execute Loan documents at solicitor’s office
The end-financier will forward a letter of instruction to the solicitor to prepare loan documents for the purchaser’s execution.

6.    Release of Progress Payment
Upon completion of the loan documentation, the end-financier’s solicitor will advise the end-financier to release outstanding progress payments to us in accordance with the Architect’s Certificates issued upon completion of each stage of construction.

B : SCHEDULE Of PAYMENT OF PURCHASE PRICE

Installments Payable	%
1. Immediately upon the signing of this Agreement	10
2. Within twenty-one (21) working days after receipt by the Purchaser of the Vendor's written notice of the completion of: (a) The foundation and footing works of the said Building (b) The reinforced concrete framework of the said Building (c) The walls of the said Building with door and window frames placed in position (d) The roofing, electrical wiring, plumbing (without fittings), gas piping (if any) and internal telephone trunking and cabling to the said Building (e) The internal and external plastering of the said Building (f) The sewerage works serving the said Building (g) The drains serving the said Building (h) The roads serving the said Building	10 15 10 10 10 5 5 5
3. On the date the Purchaser takes vacant possession of the said Building, with water and electricity supply ready for connection	12.5
4. Within twenty-one (21) working day after receipt by the Purchaser or the Purchaser's solicitors of the separate document of title to the said Lot together with a valid and registrable Memorandum of Transfer to the Purchaser duly executed by the Vendor or on the date the Purchaser takes vacant possession of the said Building, whichever is later.	2.5
5. On the date the Purchaser takes vacant possession of the said Building as in item 3 and to be held by the Vendor’s solicitor as stakeholder for payment to the Vendor as follows:- (a) Two point five per centum (2.5% at the expiry of six (6) months after the date the Purchaser takes vacant possession of the said Building; two point (b) Two point five per centum (2.5%) at the expiry of eighteen (18) months after the date the Purchaser takes vacant possession of the said Building;	2.5 2.5
TOTAL :	100

C : BE PREPARE TO PAY

1. Sale & Purchase Agreement (“SPA”) legal fees.

2. Stamp Duty On Transfer

The SPA lawyer will collect this fee from you on behalf of the Stamp Duty Office.

3. Stamp Duty And Legal Fees On Loan Agreement
Be prepared to pay stamp duty and legal fees on your loan agreement. However, some banks do absorb this cost, as an added value to the housing loan packages.

4. Insurance
The most important insurance that you need to purchase is Mortgage Reducing Term Assurance (MRTA), which ensures you home will be paid for in full should anything happen to you. Therefore, your family is assured of a place to stay.

5. Handling Over Of Keys
* Monthly maintenance charge (if you are buying an apartment/condo unit/with gated community)
* Deposit for utilities (electricity, water and telephone line)
* Assessment
* Quit rent