Purchase of Property from Developers (Property With Title)

Steps
1. The vendors solicitor to prepare a draft sale and purchase agreement will request the
following particulars from the vendor:
a. The vendors registered address and office address;
b. The vendors license number;
c. The detailed particulars of the property to be sold;
d. The layout plan for first schedule of Schedule G;
e. The approved building plan for second schedule of schedule G;
f. The schedule of payment of purchase price for third schedule of schedule G;
g. The building description for fourth schedule of schedule G;
h. The name; address and identity card number of the purchaser; and
i. The purchasers solicitors detail (if any).
[At this stage it will be prudent for the vendors solicitor to make a land search, company winding up
search and a bankruptcy search on the vendor and purchaser where relevant to ensure that the sale
and purchase transaction can be completed without any obstacle.]
2. Upon obtaining the particulars and preparing the draft sale and purchase agreement, the
vendors solicitor will send it to the purchasers solicitor for approval.
3. The VS after vetting the draft sale and purchase agreement, makes amendments to the draft if
necessary and forwards it to the VS.
4. The VS prepares five copies of sale and purchase agreements, with copy stamped as original
forwards it to the PS to be executed by their client.
5. The PS upon receipt of the sale and purchase agreement does the following:
a. Prepares memorandum of transfer (in practice 2 copies);
b. Prepares the CKHT form for the purchaser (if he has been instructed); and
c. Prepares the entry and removal of private caveat forms.
6. The PS then sends a letter to the purchaser informing him that the sale and purchase
agreement and all other relevant documents are ready for execution and request the purchaser
to bring the following documents;
a. A copt of the purchasers identity card;
b. The purchasers income tax number and the address of the branch of the Inland
Revenue for purpose of submitting CKHT form;
c. The 10% deposit sum to be paid to the vendor upon execution of sale and purchase
agreement.
The PS also forwards his bill for fees and disbursements to the purchaser.
7. The purchaser in the presence of his solicitor executes the:
a. Sale and purchase agreement;
b. Memorandum of transfer;

c. CKHT form;
d. Entry and removal of private caveat forms (if it has not been done) and pays the 10%
deposit in favour of the vendor, and settles the PSs bill for fees and disbursements.
8. The PS forwards to the VS the sale and purchase agreement and memorandum of transfer for
the execution by the vendor with the 10% deposit to be paid immediately upon execution of
the agreement (or the deposit less the two per cent retention sum towards CKHT if
applicable)
9. The vendor upon receipt of 10% deposit executes the SPA, MOT and CKHT forms.
10. The VS forwards to the PS the SPA and MOT with a covering letter.
11. The PS stamps the SPA in the stamp office and retains a copy, forwards a copy to the VS with
a covering letter and hands over the original and a copy to the purchaser with a covering
letter.
12. The PS makes a title search at the land registry and places a private caveat.
13. The private caveat is prepared by the PS and lodged with the land office upon payment of
relevant fees with a covering letter.
14. The purchaser takes the SPA to his financer bank and makes an application for loan to finance
the purchase of the property.
15. The financier bank upon approval of the loan sends a letter of offer to the purchaser and may
send copies to the purchasers solicitor.
16. The purchaser accepts the letter of offer and forwards it to the financer bank.
17. The purchaser receives a letter from the financiers solicitor, requiring him to be present at
the office to execute the loan agreement and memorandum of charge and other security
documents in favor of the financier bank and requiring him to bring the following:
a. The original SPA;
b. A copy of the identity card;
c. The solicitors fees, registration fees, etc.
18. The financiers solicitor also informs the PS that a loan has been granted to the purchaser and
seeks the confirmation of the purchaser on the following:
a. The MOT has been executed by the vendor and purchaser;
b. The MOT has been presented for adjudication.
The FS will seek an undertaking from the PS to forward to them:
a. A valid and registrable MOT in favour of the purchaser;
b. The quit rent and assessment receipt for the current year;
c. Other documents which may be necessary to facilitate the registration of the transfer,
free from encumbrance.
19. The PS upon receipt of the letter from FS will send the MOT (dated) for adjudication to the
stamp office, a copy of the title and a copy of the SPA with a covering letter.
20. The PS will inform he FS that:
a. The MOT has been duly executed by the vendor and purchaser;
b. The MOT has been presented for adjudication;
c. Will forward the FS a valid and registrable MOT in favor of the prucahser;

d. To forward the quit rent and assessment receipt for the current year upon receipt from
the vendors solicitor;
e. To forward any other documents which may be reasonably necessary and in their
possession to facilitate the registration of the transfer free from encumbrances.
21. The FS will also write to the VS for the following:
a. Whether the difference between the purchase price and the loan sum has been settled
by the purchaser;
b. The name and address of the Bank to which the property is currently charged;
c. To forward the redemption statement cum a letter of undertaking from the chargee
Bank to deliver the original title deed, duplicate registered charge, the duly executed
discharge of charge and to refund the redemption sum, in the event the discharge of
charge cannot be registered for any reasons whatsoever;
d. To forward the vendors undertaking to refund the full loan sum of RM90,000.00 in
the event the MOT cannot be registered/perfected
e. To forward the duly executed discharge of charge, the duplicate registered charge and
the original title upon receipt from the Chargee Bank;
f. To forward the current quit rent and assessment receipt;
g. To forward the registration fee for the registration of discharge of charge.
22. The VS upon receipt of the FSs letter will write to the Chargee Bank (if any) informing them
that:
a. The purchaser has obtained a loan of RM 90,000.00 from Financer Bank;
b. Financer Bank requires a direct undertaking from Chargee Bank Bhd that they will
deliver the original title deed, the duplicate registered charge, the duly executed
discharge of charge, and to refund the redemption sum in the event the discharge of
charge cannot be perfected.
23. The VS will also reply to the FS stating that:
a. The difference between the purchaser price and the loan sum has been fully settled by
the purchaser;
b. The property is charged to Chargee bank;
c. They have written to the chargee bank for the redemption sum cum letter of
undertaking addressed directly to their client;
d. They will forward the redemption statement cum undertaking letter upon receipt from
the chargee bank.
e. They will forward the vendors undertaking addressed directly to the financier to
refund the full loan sum, in the event the MOT cannot be registered/ perfected;
f. To forward the duly executed and stamped discharge of charge, the duplicate
registered charge and the original issue document of title upon receipt from the
chargee bank;
g. To forward the current quit rent and assessment receipt;
h. To forward the registration fees for the discharge of charge.

24. Charge bank will reply to the VS and forward them the original redemption statement cum
undertaking addressed directly to financier bank.
25. The VS will obtain the letter of undertaking from the vendor addressed to Financier bank, to
refund the full loan sum, in the event the MOT cannot be registered/ perfected.
26. The VS under a covering letter would forward the following to the FS:
a. The original redemption statement cum undertaking from chargee bank addressed to
Financer bank.
b. The letter of undertaking from the vendor addressed directly to financer bank.
27. The FS upon obtaining the documents stated above will forward them to financier bank who
will then release the redemption sum in favour of the chargee bank. Then the FS will forward
the redemption sum by way of covering letter to the VS.
28. Upon the receipt of the redemption sum from the FS, the VS by way of letter, will forward it
to the chargee bank with discharge of charge (form 16N) for the execution of the attorney of
the chargee bank.
29. The chargee bank will execute the discharge of charge and forward it to the VS with the
duplicate registered charge (form 16A), and issue document of title. Upon the receipt of the
said documents, the VS will stamp the discharge of charge and by way of a letter to FS will
forward the said documents with a photocopy of the current quit rent, assessment receipt and
registration fees on discharge of charge, with the details of the chargee banks power of
attorney.
30. The PS will also by a letter, forward to the FS, the MOT duly adjudicated and stamped, and
two copies of withdrawal form of the private caveat lodged by the purchaser on the title with
the registration fees for withdrawal of private caveat and the registration fees for the transfer.
31. The FS will present the transfer at the land office. Before doing this, they will ensure that the
discharge of charge of the chargee bank is presented, followed by the withdrawal of private
caveat of the purchaser and the financer bank. Upon presentation of the transfer and the
charge, the FS may advice the financier bank to release the balance loan sum.
32. The financer bank will thereafter pay the balance purchase price according to the progress
payment schedule pursuant to the sale and purchase agreement to the vendor or his solicitor
and carbon copy a letter to the PS.
33. Upon receipt of the original title from the land office showing the purchaser as the registered
owner and the FS as chargee, the FS will sent a photocopy of the title to the purchasers
solicitor.
34. Upon the completion of the project and upon issuance of the certificate of fitness, the VS will
hand over the keys to the PS.
35. The PS by way of covering letter will forward the keys to the purchaser and advise the
purchaser to attend to the change of name at the relevant municipal council/authority to
reflect the new owner of the property.

Sale and Purchase (Property Without Title)

Steps (Sub Sale)
1. For the purpose of preparing the draft SPA, the VS needs the following:
a. A photocopy of the first SPA (the developer as the vendor and the first purchaser) and
any subsequent SPA and deeds of assignments if any to evidence the chain of
beneficial ownership and the beneficial interest of the present vendor;
b. A photocopy of the identity cards of the vendor and the purchaser;
c. The income tax file number ad the place of the tax office of the vendor if the solicitor
has been instructed to file the CKHT form for the vendor; and any previous SPA to
prove the price of the property;
d. A bankruptcy search report of the vendor and purchaser;
e. A search report on the master title to ensure the property is not encumbered other than
that disclosed by the vendor.
[item (d) and (e) stated above in practice is not done at the time of the execution of the SPA as it may
take time and the parties will insist on proceeding with the execution of the SPA].
2. The VS prepares the draft SPA and sends it to the PS for approval.
3. The PS upon receipt of the draft SPA, prepares the draft deed of assignment (to be signed in
escrow) between vendor and the purchaser and forwards the approved draft SPA and the draft
DOA to the vendors solicitor for approval.
4. The VS prepares five copies of the SPA (one to be stamped as original and the others as
copies_ and forwards it with the approved draft deed of assignment to the PS, for execution
of the purchaser.
5. The PS upon receipt of the SPA and draft deed of DOA does the following:
a. Prepares the DOA;
b. Prepares CKHT form for the execution of the purchaser if he has been instructed to do
so;
6. The PS informs the purchaser to be present at their office to execute the documents and to
bring the following:
a. A photocopy of the identity card;
b. The income tax file reference number (if any) and the place of the income tax office;
c. The 10% of the deposit to be paid to the vendor upon execution of the SPA; and
d. The PSs fees cum registration fees and other relevant disbursement.
7. The purchaser in the presence of his solicitor executes:
a. The SPA;
b. The DOA;
c. The CKHT form;
d. And pays the 10 % deposit in favour of the vendor and other fees, stamp duty,
disbursements etc. to the PS.

8. The PS forwards to the VS the SPA, DOA, for the execution of the vendor with the 10 %
deposit in favour of the vendor.
9. The vendor upon receipt of the 10% deposit, executes SPA, and the DOA in the presence of
his solicitor and pays the VS if it has not been paid.
10. The VS forwards to the purchasers solicitor the SPA (dated) and the DOA (undated) with a
covering latter.
11. The PS stamps the SPA in the stamp office and retains a copy, forwards a copy to the VS with
a covering letter and hands over the original and a copy of the SPA to the purchaser with a
covering letter.
12. It is not unusual for the PS to do a bankruptcy search on the vendor and purchaser, and a
master title search at the earliest opportunity.
13. The PS will also write to the developer for its written confirmation.
14. The purchaser takes the SPA to his financier bank and makes an application for loan, to
finance the purchase of the property.
15. The financier Bank, upon approval of the loan, sends a letter of offer to the purchaser, and
may send copies to the PS and the FS.
16. The purchaser, if in order accepts the letter of offer and forwards it to the financier bank.
17. The purchaser receives a letter from the FS requiring him to be present at the office to
execute the loan agreement cum assignment and power of attorney in favour of the financier
bank and requiring him to bring the following:
a. The original SPA, between the vendor and purchaser;
b. A photocopy of his identity card; and
c. The FSs fees, stamping fees, registration fees, disbursements etc.
18. The FS also informs the PS that a loan has been granted to the purchaser and seeks the
confirmation of the following:
a. Whether the deed of assignment between the vendor and purchaser has been duly
executed and the confirmation of the original vendor (developer) and master title
holder have been obtained;
b. Whether the deed of assignment has been presented for adjudication ( it must not be
adjudicated and dated until receipt of reassignment duly executed and dated);
c. Whether the difference between the balance purchase price and the loan sum has been
fully settled by the purchaser.
19. The FS will seek an undertaking from the PS to forward to them:
a. The duly executed, valid and stamped deed of assignment between the vendor and the
purchaser, with the confirmation of original vendor and master title holder;
b. The letter of consent from the relevant authority in respect of the SPA of the said
property in favour of the purchaser (if there is a restriction in interest requiring
consent from the relevant authority);

c. The letter of undertaking by the vendor addressed to financier bank to refund the loan
sum so released by financier bank in the vent that the assignment by financier in
favour of the purchaser cannot be perfected;
d. The duly executed valid stamped and registrable memorandum of transfer of the said
property in favour of the purchaser upon issuance of the separate document of title to
the said property by the relevant authority (extra);
e. The original stamped SPA between the original vendor and the initial purchaser and
all subsequent documents evidencing the chain of beneficial ownership and/ or title of
the present vendor (if the vendor is not the initial purchaser);
f. The redemption statement from chargee bank;
g. The duly executed and stamped receipt and reassignment with the power of attorney,
revoked and registered in the High Court;
h. And the chargee banks letter of undertaking to financier bank to refund the
redemption sum released to them in the vent the receipt and reassignment cannot be
perfected.
20. The PS upon receipt of the letter stated above and the confirmation that the VS has stamped
the duly executed deed of receipt and reassignment, will have to send the DOA, which has
been conseted by the original vendor and master title holder (if concent is required) for
adjudication to the stamp office, together with a copy of SPA.
21. The PS will collect the difference between the purchase price and the loan sum and forward it
22.

to the VS with a covering letter.