Buying a sub-sale property in Malaysia refers to the purchase of a property from an existing owner, rather than directly from a developer. This comprehensive guide aims to provide valuable insights and a step-by-step process for prospective buyers interested in acquiring sub-sale properties in Malaysia.
1. Understanding Sub-Sale Properties:
Sub-sale properties are previously owned properties that are available for sale in the secondary market. They can include various types of properties, such as residential houses, condominiums, apartments, and commercial buildings. It is important to differentiate sub-sale properties from new developments as the buying process and considerations differ significantly.
2. Research and Property Selection:
- Determine Your Requirements: Start by defining your requirements and preferences, such as location, property type, size, amenities, budget, and any specific features you desire.
- Conduct Market Research: Explore property listings on various online platforms, engage with real estate agents, and visit property exhibitions to gain insights into the market trends, pricing, and availability of sub-sale properties in your desired area.
- Property Inspection: Once you identify potential properties, schedule property viewings to personally inspect the condition, layout, and suitability of the property. Pay attention to aspects like structural integrity, maintenance, and any potential renovation or repair requirements.
3. Financial Considerations:
- Determine Your Budget: Assess your financial capabilities and establish a realistic budget for purchasing a sub-sale property. Take into account the property price, down payment, loan eligibility, and other associated costs such as legal fees and stamp duty.
- Financing Options: Explore financing options available, such as bank loans, and obtain pre-approval to gauge the loan amount you qualify for. Compare interest rates, loan terms, and repayment options offered by different financial institutions.
- Engage Professionals: Consult a financial advisor and engage a qualified lawyer to ensure you have a clear understanding of the financial commitments and legal obligations associated with purchasing a sub-sale property.
4. Due Diligence and Documentation:
- Property Title and Ownership: Verify the property’s ownership status and ensure that the seller has a valid and clear title. Conduct a search at the relevant land office or engage a professional to verify the property’s ownership history and any encumbrances.
- Sales and Purchase Agreement (SPA): Engage a lawyer to draft or review the SPA, which outlines the terms and conditions of the property transaction. Ensure that the SPA protects your interests and covers essential clauses related to price, payment terms, delivery, and warranties.
- Legal and Administrative Processes: Your lawyer will guide you through the legal processes, including conducting necessary searches, preparing transfer documents, and facilitating the payment of stamp duty and other fees.
5. Negotiation and Offer:
- Property Valuation: Obtain a professional valuation of the property to determine its market value and assist in negotiations.
- Offer and Negotiation: Make an offer to the seller, taking into consideration factors like the property’s condition, market value, duration on the market, and any potential repairs or renovations required. Negotiate with the seller or their agent to reach a mutually acceptable price.
- Earnest Deposit: Upon agreeing on the purchase price, submit an earnest deposit (usually 2-3% of the property price) to the seller or their agent as a sign of commitment to proceed with the purchase.
6. Completion and Handover:
- Financing and Loan Approval: Finalize your financing arrangements, complete the necessary loan application processes, and ensure the loan is approved before the completion date.
- Property Inspection: Conduct a final inspection of the property to ensure it is in the agreed condition before the completion date.
- Final Payment and Transfer: On the completion date, settle the balance payment to the seller