Property Disposal Process

Property Disposal Process

Owner Decide To Sell Property.

Estimate Offer Price.

  • Real Estate Agents/Negotiators (REA / REN) are not certified valuers, hence they have no authority to provide proper valuation to the property;
  • However, to address the need from either seller or buyer, REA / REN are often required to provide quick and easy market indication price
  • Responsible REA /REN will normally go through following channel to collect necessary statistic to support their estimation of the market price
    • Verbal valuation via bank valuer
    • Past valuation statistics in similar property obtained from
      • Valuation and Property Services Department under Ministry of Finance Malaysia
      • National Institute of Valuation
    • News Paper & Magazine Classifieds
    • Online Property Portal
    • Property Market Report
  • Seller/Purchaser are advisable to appoint a valuer to perform a proper valuation as due diligence before making important decisions

To fetch better price for your property

    • Repair to ensure functionality of the property
    • Repaint to give the property a fresh and neat look
    • Perform maintenance to ensure there is no loosen part in the property

Potential Buyer Decide to Purchase The Property.

Purpose of Purchase

  • For own occupation
  • As an investment vehicle

Appoint Real Estate Agent

  • Why it is recommended to appoint an property agent?
    • They are registered and regulated by The Board of Valuers, Appraisers and Estate Agents Malaysia (BOVAEA or LPPEH)
    • They are qualified and knowledgeable in following aspects:
      • Law relating to real estate
      • Latest property market trends and transactions
      • Latest issues
    • Can be trusted with client’s money

Estate Agency Process

  • Information and Copies of Documents
  • Marketing
  • Negotiation
  • Close

Mutual Agreement

  • Both vendor and purchaser agrees on price and other pertinent aspects of the sale

Sign Letter of Offer and Acceptance

  • Also known as Memorandum of Agreement, Letter of Offer and Acceptance
    • It is an “Written statement expressing the intention of the undersigned to enter into a formal agreement, for the purpose of a sale and purchase transaction”
    • The objective is to enable the agent to maintain effective control over the transaction and spells out the contractual obligations and the interest and entitlement of all parties.

Appoint Solicitors

  • Each party is advisable to retain separate lawyers to protect their respective interests.
  • A lawyer may only act for one party in one transaction, but
    • May witness the execution of any documents/instruments by any party
    • May act for the lender or borrower in a Loan Agreement

Pre-contract Stage

    • A stage when Offer and Acceptance duly signed
    • The action:
      • Property Investigations
      • Valuation
      • Land Search
      • Bankruptcy Search
      • Winding-up Search
      • Requisition of Title
        • Written questions relating to the sale of property drawn up by lawyers
        • It is done after signing the Letter of Offer and Acceptance.
          • Solicitor for the purchaser receives the abstract of title from the solicitor for the seller.
          • Solicitor for the purchaser will study and draw up a list of queries relating to any questionable points of title and send to vendor’s solicitor.
          • The objective is to clarify any legal queries relating to a property sale.
      • Financing a Real Estate Purchase

Sales and Purchase Agreement