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Before
you decide to buy a new house or any kind of property in Malaysia,
ensure that the housing developer - if buying 'off-plan' has a license
and it is still valid and check the housing developer has an
advertisement and sales permit and that it is still valid.
Malaysia Property Types
Generally, for new landed property such as
bungalows,
semi-detached houses
and terrace houses in
Klang Valley and other city in Malaysia, the expected date of completion
is normally 24 months from the date of signing of the Sales and Purchase
Agreement and for new subdivided building such as
condominiums,
apartments and
townhouses, the expected date
of completion is 36 months. Buyers are advised to obtain from the
Malaysian property developer sales literature with all relevant
information about the project such the development's license number, and
advertisement and sales permit.
Buying Land in Malaysia
Buyers need to know whether the land is:
- Freehold land (held in
perpetuity)
- Leasehold land (check
the number of years left on the lease)
- Malay Reserve land
(has restrictions and not suitable for overseas buyers)
* The status of the land can be checked at the Land Office or the State
Land Registrar.
Important Information When Buying Malaysia Property
For new or 'off-plan' properties the following information should be
checked:
The Malaysian Property Developer's licence number and the expiry date;
The advertisement and sales permit number and the expiry date;
The name and address of:
i. The licensed Malaysian property developer
ii. Authorised agents (if any)
iii. Those holding power of attorney (if any)
iv. The project management company (if any)
Check List
- Has the land has been mortgaged to the bank for a loan?
- Location description
- Building materials specification
- Size of building amenities and services
- The name of the housing project (if any)
- Expected date of completion
- Price of each type of house
- Number of units for each type
- The reference number of the approved plan
- The name of the local authority
First Payment
Normally the first payment of a deposit of 10% must be made upon signing
of the Sales and Purchase Agreement (SPA). Please ensure that the date
of signing of the SPA and the date of the first payment are the same. Be
aware that the housing developer is not allowed to collect any form of
payment without a Sales and Purchase Agreement being signed.
Architect's Certification
Make sure any demand by the Malaysian real estate developer for
installment payments is supported by a certificate duly signed by an
architect or a certified engineer.
Interest on Late Payments
If the buyer or end financier for the buyer fails to pay the developer
of the property in Malaysia the progressive payment/installment within
21 working days from the date of the written notice of payment from the
developer, the buyer will usually be charged an interest of 10 per cent
per annum on the installment not paid.
Termination of the Sales and Purchase Agreement (SPA)
Be aware that failure to make the progressive payment or interest
charged on late payment for a period of more than 28 days will give the
developer the right to terminate the Sales and Purchase Agreement. The
developer must serve the notice in writing by registered post of its
intention to terminate the SPA.
Infrastructure Maintenance
Buyers of property in Petaling Jaya and other city in Malaysia will
normally pay the cost of maintaining the infrastructure from the date of
vacant possession till the date the responsibility is taken over by the
local authority or management corporation (in the case of a subdivided
building).
(Infrastructure is defined as roads, driveways, drains, sewerage,
pipelines and sewerage tanks for the housing development or buildings).
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