9 TIPS AND TRICKS FOR FIRST TIME HOME BUYERS – SUBSEQUENT SALE (AFTER ACCEPTING THE OFFER)

9 Tips and Tricks for 1st Time Home Buyers – Subsequent sale (after accepting the offer)

1.   Time is of the essence. Once you have accepted the offer to purchase, you will need to look for a lawyer as soon as possible to represent you in the sale and purchase transaction.

2.   You have to monitor the time period for the execution of sale and purchase agreement (“SPA”). Normally, the SPA is to be executed within fourteen (14) days from the date of acceptance of the letter of offer by the seller. In the event you fail to execute the SPA within the specified time due to your own delay in engaging your lawyer, the seller is entitled to forfeit the earnest deposit you have already paid to them.

3.   Always request an inventory list to be attached in the SPA if the property is sold with fixtures and fittings.

4.   Sort out your loan financing as soon as possible once you have accepted the offer, as late payment interest might be incurred if the delay in obtaining the loan cause the late completion of the SPA.

5.   You are eligible to withdraw your Employees Provident Fund (Account 2) to finance the purchase of property if you are a Malaysian Citizen or Permanent Resident, provided that you maintain at least RM500.00 in your Account 2.

6.   Be prepared that the transfer of your property might take a little longer if it is a leasehold property with individual title, which requires state consent. This does not happen if your property is still held under a master title.

7.   You are eligible to a once in a lifetime 50% remission on ad valorem stamp duty for the purchase of a unit of residential property with a purchase price of not more than RM350,000.00.

8.   You are eligible to a once in a lifetime  50% remission from the stamp duty chargeable on loan agreement to finance the purchase of a unit of residential property with a purchase price not more than RM350,000.00.

9.   Remember to file your Form CKHT 2A to the Inland Revenue Board. Every disposal and acquire of property must be declared to the Inland Revenue Board.