Real Estate FAQ
What are all the possible costs and charges when I intend to purchase an apartment/condominium?
If you purchase a new house/apartment directly from developer
Initial Deposit - minimum 10% of property value or depending on the offer.
1. Loan application processing fee (Some bank waive it depends on package offer) (until end of 2009)
2. Insurance (MRTA & Fire Insurance if you take the housing loan)
3. Stamp Duties
4. Legal fees and costs
5. Utilities deposit (Electric & Water)
If you purchase a sub-sale house/apartment from a vendor
1. Loan application processing fee (Some bank waive it depends on package offer) (until end of 2009)
2. Insurance (MRTA & Fire Insurance if you take the housing loan)
3. Valuers' fees and costs
4. Stamp Duties
5. Legal fees and costs
6. Utilities deposit (Electric & Water)
Who are real estate agents and how much should I pay for their service?
Registered Estate Agents are estate agents registered by the Board of Valuer, Appraisers and Estate Agents, Malaysia. The latest fee for service (as from March 16th, 2000) is 2.75% on the first RM500,000 transacted and 2% on the residue over RM500,000. The board only allow vendor (Property Seller) to bear the fee.
What is a valuation report and how much should I pay for a valuers fee?
A valuation report is a report of survey carried out by the bank to ensure that the house's value is not less than the proposed loan. For those who are applying for housing loans from banks, a report by a Real Estate Valuation firm recognized by the banks is needed. Between of RM300 - RM800 is a normal fee for an average apartment valued.
How do I pay for the purchased unit and when should I pay?
If you purchase a new unit directly from a developer
The purchase price of the apartment shall be paid by you to the developer by installments as prescribed in Third Schedule of Sales and Purchase Agreement (Schedule Of Payment Of Purchase Price). Every notice referred to in the Third Schedule requesting for payment shall be supported by a certificate signed by the developer's architect in charge of the housing development.
If you purchase a sub-sale apartment from a vendor
The purchase price of the apartment shall be paid as prescribed in the Sale and Purchase Agreement between you and the vendor. You should understand and agree with the payment manner and period of payment of the purchase price. Therefore, you should seek your lawyer's advice for further explanation.
Third Schedule, Housing Developers (Control And Licensing) Regulations 1989 Schedule Of Payment Of Purchase Price
INSTALLMENTS PAYABLE % Amount
1.Immediately upon the signing of this agreement 10%
2.Within 14 days after receipt by the purchaser of the vendor's written notice of the completion of -
(a)The work below ground level including piling and foundation of the said building comprising the said parcel 10 %
(b)The reinforced concrete framework and floor slab of the said parcel 15 %
(c)The walls of the said parcel with door and window frames places in position 10 %
(d) The roofing/ceiling. Electrical wiring, plumbing (without fittings), gas piping (if any) and internal telephone trunking and cabling(if any) to the said parcel 10 %
(e) The internal and external plastering of the said parcel 10 %
(f) The roads, drains and sewerage works serving the said building 15 %
4. Upon handling over of vacant possession as in item (3) and to be held by the Vendor's solicitor as stakeholder for payment to the Vendor as follows -
(a) 2.5% at the expiry of 6 months after handling over of vacant possession 5 %
(b) 2.5% at the expiry of 12 months after handling over of vacant possession
TOTAL 100 %
How can I obtain the loan to finance my purchase?
If you are desirous of obtaining a loan to finance your unit, you should make an application for loan to the bank or finance company.
How much should I pay for legal fees?
Please be aware that the schedule for legal fees are numerous and varied, thus it is advisable to consult your lawyers for the present calculation of the legal fees.
Preparation of Sale & Purchase Agreement, the transfer of the property and attending to stamping and registration.
(The fees are based on a schedule with a minimum of RM200.) Consideration up to RM100,000 = 1.00 % of the purchase price
Consideration up to the next RM4,900,000 = 0.50 % of the purchase price
Consideration exceeding RM 4,900,000 = 0.25 % of the purchase price
Preparation of the Loan Agreement of the property and attending to stamping and registration.
(The fees are based on a schedule with a minimum of RM200.) Consideration up to RM100,000 = 1.00 % of the purchase price
Consideration up to the next RM4,900,000 = 0.50 % of the purchase price
Consideration exceeding RM 4,900,000 = 0.25 % of the purchase price
What is the loan application processing fee charged?
Processing fee has to be paid upon signing the bank's letter of offer. The usual amount ranges from RM50 to RM200 per application. However, some banks do not charge for any processing fee during promotional periods.
What are the procedures and documents required to apply for a housing loan?
You will be required to fill in an application form for the loan with the following details:
Personal particulars
Particulars of employment/ income
Particulars of joint applicants
Financial particulars (monthly income and expenditure, assets and liabilities)
Particulars of loan applied
Details of property to be financed
Particulars of other loans taken form other financial institutions
Declaration
Documents required
Photocopy of identity card
Photocopy of the Sales & Purchase Agreement
Photocopy of the last Fo% J or EA Fo%
Photocopy of the last 3 months salary slips
Dated letter from employer
Photocopy of the last 2 years profit & loss account (if-self employed)
Photocopy of one year (current) housing loan statement (if refinancing)
What is Mortgage Reducing Term Assurance (MRTA) and should I pay for it?
Mortgage Reducing Term Assurance (MRTA) is a scheme where you are covered for the amount of the loan for the period of the loan. Mortgage Reducing Te% Assurance Premium is one lump sum and very often the lending institution will arrange fire and Mortgage Reducing Te% Assurance of insurance cover. If you pass away during the period of the loan the Insurance Company which issued the policy will pay the outstanding balance of the repayment to the bank/finance institution.
I am a foreigner, can I buy a house in Malaysia?
Yes, you can. However any purchase of property regardless of value must be subjected to the approval of the State Government AND Foreign Investment Committee (FIC).
Does the vendor need any written consent from the developer for the sale and assignment of his/her apartment unit to me (sub-sale)?
Yes, if the strata title has not been issued to the vendor. Immediately after the execution of the Sale and Purchase Agreement between you and the vendor, the vendor shall forth with apply to the Developer for written consent to the sale and assignment of the apartment unit to you. All administrative fees for obtaining the consent including the registration fees, whatever outstanding interest/charges shall be borne by the vendor.
In the event written consent is refused by the developer to the vendor, the vendor shall refund the deposit (if any) without interest to your solicitor and the Sale and Purchase Agreement between you and the vendor shall forthwith be null and void.
What is the Real Property Gains Tax?
As a Malaysian citizen, either individual or company, you will be subjected to Real Property Gains Tax only if you sell within 5 years from the date of acquiring the property. The taxable amount is based on how long you held the property. Real property gains tax shall be retained by your solicitor. Your solicitor is authorized to pay this sum to the Director-General of Inland Revenue upon receipt of the notice of assessment to procure the Certificate of Clearance.
However, if you are not a Malaysian citizen, any disposal of the property will attract Real Property Gains Tax of 30% on the profit. Check out the Real Property Gains Tax page for more information.
Fri May 04, 2012 4:59 pm by demin
Subject: Real Estate FAQ 
