What you Should Know Before Buying a Real Estate

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.

• Loan application processing fee(Some bank waive it depends on package offer) 
• Insurance(MRTA & Fire Insurance) if you take the housing loan) 
• Stamp Duties 
• Legal fees and costs 
• Utilities deposit (Electric & Water) 

If you purchase a sub-sale house/apartment from a vendor

• Loan application processing fee(Some bank waive it depends on package offer) 
• Insurance(MRTA & Fire Insurance) if you take the housing loan) 
• Valuers' fees and costs 
• Stamp Duties 
• Legal fees and costs 
• 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. Their agency fee for service rendered is a maximum of 3% of the sale price of the property.

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

WHAT YOU NEED TO KNOW BEFORE SELLING A PROPERTY

A Registered Estate Agent can market a property under the following types of agency :

Exclusive Agents
Only one agent is appointed and the owner cannot sell on his own

Sole Agents
Only one agent is appointed and the owner reserves the right to sell on his own 

Joint Agency
either two or three Agents are appointed to sell 

Adhoc/General
any number of Agents can be appointed to sell and All appointments are to be in writing


How do Estate Agents handle Earnest deposits?

• Agree to pay to the Agents clients account as stake holders 
• Money to be placed in clients account without delay 
• Proper records must be kept on the placing of the earnest deposit 
• Temporary receipt is to be issued upon collection of the deposits 
• Money to be left in clients account until SPA is signed or when all conditions become unconditional. 
• When fees become due to the REA, the agent can draw down from the clients account and pay to the companies account the fees due and payable. To issue balance payment to client. 
• Not to deduct any cost or charges from the EDv unless the client has given authority to do so 
• Monies received in the form of cash and are without delay paid in cash in the ordinary course of business to a client or on his behalf to a third party in the course of the day need not be banked into the clients account

What are the advantages of engaging the Real Estate Agent in a sale and purchase of a property?

• They are registered with the Board of Valuers, Appraisers & Estate Agents 
• They are governed by an act of Parliament 
• Estate Agents are recognized by the government 
• They are qualified, knowledgeable & experienced 
• They are accountable to the clients for their actions 
• They understand and know laws relating to property transaction 
• They are well informed about currents events 
• They are accountable for monies collected - clients account 
• Real Estate Agents save time & money - do it right the first time around 
• Real Estate Agents advise on property values and negotiate prices 
• The Vendors life is much easier as the Agents take care of the small details 

Essential matters that must agreed upon by both the client and the Estate Agent before putting up the property for sale

• Personal details of sellers 
• Check the title to verify registered owners/details of the property 
• Get a copy of the sale & purchase agreement 
• Confirm Type of Agency & marketing period 
• Confirm the Selling price & earnest deposit to be collected 
• Completion of sale & when is vacant possession 
• Agree on promotional activities like open house, ads, signboards etc 
• Agree on Fees payable to Real Estate Agent plus service tax 
• Agree when fees become due & other cost if any 
• Agree on payments to be made to Estate Agents and understand the operation of the clients account

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