Frequently Asked Questions
On Property Sales
1.How much deposit do I have to pay, in order to book the purchase?
Normally we require 3% of purchase price as initial deposit. Balance of initial 10% deposit need to be paid upon signing for Sale and Purchase Agreement.
2.What happens to my earnest deposit if I change my mind?
The earnest deposit will be forfeited should you change your mind and not to proceed with the purchase.
3.What happens if the Seller changes his mind?
The earnest deposit plus a pre-agreed amount(normally half its amount) shall be refunded to you. The seller will also need to pay 50% of total remuneration to the appointed agent for services rendered.
4.How long normally would it take from payment of earnest deposit till the Sales and Purchase Agreement is signed?
Normally within 14 days after payment of earnest deposit. Extension may be allowed upon mutual agreement from both seller and buyer.
5.Who is responsible to draft the Sales and Purchase (SPA) Agreement?
Either the seller or the buyer, can get their lawyers to prepare the first draft. S&P Agreement will be outcome of negotiations between lawyers from both parties.
6.What is the normal amount of deposit to be paid upon execution of the SPA?
Normally 10% of Purchase price (sometime 20%) depending on pre-agreed amount
7.How do we transact a sales related to an apartment or condominium in a multi-storey building; with strata titles yet to be issued?
A sales relating to any multi-storey building is normally transacted through a Deed of assignment. It is a normal and legal method by Malaysian Law and accepted by bankers for this type of properties.
8.Can you recommend any banker?
Yes, we can introduce financial institution who are willing to provide loan for your purchase. However, the loan application will be subjected to all terms and condition required by the financial institution.
9.Normally, who should bear the Stamp Duty, Legal Fees and Estate Agency Fees?
Stamp duty for any purchase is paid by the buyer. Seller will need to pay for their RPGT and Estate Agency Fees. Both buyer and seller will pay their own appointed lawyers the agreed Legal Fees.
10.Why is buying a completed house better than to purchase from a developer's newly launched project?
A completed house will save you all the trouble and uncertainty in waiting. Many house purchasers have had their dream house remain at the construction stage for years and incurring substantial interest cost from their loan. A completed house will also save you rental cost while waiting for the developer to deliver their promise.
On Property Rental
1. How much payment is required ?
Normally 2 months security deposit and one month advance rental deposit, together with another half month rental as utilities for services such as electricity, water and piped in gas. Total of 3 ½ months payment is required before the house is handed over. For commercial properties payment of 4 months rental is required.
2.How much is the fee for services provided by Premier Asia Property Sdn Bhd?
As a licensed Real Estate Agent, we receive remuneration only from the Landlord.
3.What is the normal duration for tenancy in property market?
Normally one year as the minimum lease period required by most Landlord. Any lease with shorter than a year may require additional deposit or higher rental to be agreed between the Landlord and tenant. Option for renewal of another one year will be provided to the tenant, this is normally called 1+1 year. The tenancy period could also be 2+2 or 3+2 depending the needs of both the Landlord and tenant.
4. What happens if I terminate the tenancy before the expiry of the tenancy period?
The tenant may not be able to recover his two months security deposit paid. The Landlord can still exercise his contractual right based on the Tenancy Agreement to recover up to maximum amount of rental according to the tenancy period. Landlord can also claim for damages within the premise.
5.Can the Landlord serve me notice to terminate the tenancy before the expiry of the tenancy?
Yes, if the tenant has breached some of the conditions as stated in the Tenancy Agreement and unable to rectify with remedial works within the given time frame.
6.Who should prepare the draft Tenancy Agreement?
Tenant is normally the party proposes the draft agreement for Landlord's consideration. Sometimes , Landlord may request assistance from a lawyer (or Property Service Executive)to help in checking the wordings of the draft.
7. If I am the brother (or relatives) to the owner, can I be “in charged” of a transaction?
Yes, you can help to arrange for the Tenancy Agreement to be properly executed by the Legal Landlord. No one other than the Legal Landlord or his authorised representative can execute a valid tenancy Agreement.
8.Why it is a better deal for the Landlord to rent his property earlier; than to have a slightly higher rental a few months later?
The monthly rental collected now will actually “increase” the total net amount received at the end of the period. Renting out earlier effectively increase the rental received and the Landlord is relieved of the uncertainty in waiting for next higher rental.