Buying and selling a property will always be one of the biggest financial and emotional transactions of our lives. As a seller, besides getting the property up and ready for prospects viewing, you have to be ready with the “legal” side of things as well. These are a few things to take note on:-
 

1. Proof of your Identity.

Are you the registered owner of the Property? Is your name registered under the Title Deed of the Property? If yes, you’re definitely eligible to sell the property. For Master Title cases, you’ll need to check on with the updated Developer’s record.

 

How about a proprietor who has passed away? Basically, the property cannot be sold unless a probate/letter of administration has firsts been granted by the High Court/Land Administrator.

 

2. Ownership Documentation.

Few documents needed to proceed with your sale, i.e. Principal/Current Sale and Purchase Agreement, Deed of Assignment, Court Orders (if any) and Power of Attorney. These are the proof of your ownership to the property.

 

3. Inventory List.

Preparing a list would also be part of the checklist for Vendors. Vendors and agents would have to take note on the available items in the premise and to check whether all items are in a good condition or otherwise when handing over the property to the intended Purchaser.

 

4. Bank Loan Details.

Before selling off your property, Vendors will need to check on the details of their loan, either through their Financiers or Bank Loan Documents. The reason being so is to get an update on the outstanding loan amount – will you need a top-up to settle the outstanding amount with the Financier?

 

5. Tax & Charges.

Another point to check on is pertaining to the tax and charges imposed on the property. Vendors have the responsibility to make sure that you have paid up to date all charges imposed inclusive of the penalties, i.e Quit Rent, Assessment, Indah Water Charges, JMB Maintenance and etc. If it’s not done promptly, it can delay the process of your sale. All receipts paid should be kept and delivered to your solicitors, this is to inform the intended Purchaser that all payments are made up to date when handing over the property.

 

6. Real Property Gains Tax (‘RPGT’).

So basically what is exactly RPGT? It is the imposition of tax on your gained profits from selling your property. 3% from the Purchase Price will be retained by the Lembaga Hasil Dalam Negeri (‘LHDN’). However, you may also opt for some exemptions (if eligible).

 

7. Tenancy.

Just like any other contracts, once a Tenancy Agreement is signed, it forms a valid and binding contract. Therefore, once the Vendor intends to sell the property, it would definitely subject to Tenancy. Vendors are required to inform his/her intention to sell the property to the Tenant so as to allow the Tenant to have ample time to find a new place. However, depending on the circumstances, some intended Purchasers would allow for the Tenancy to continue until the term lapsed.

 

8. Fees Incurred.

Listing two main fees incurred in the process, i.e Solicitor’s Legal Fees and Agency Fees. Vendors will need to negotiate on the rate with their agents respectively, however, Solicitor’s legal fees are basically referred from the Solicitor’s Remuneration Order 2017. Fret not, discounts are applicable to the imposed fees!

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Hoping readers would get a basic knowledge pertaining to the Legal Checklist, to know more kindly contact us at T: +603 6730 6088 / E: ainin@antplaw.com / general@antplaw.com for any clarifications or quotations!

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