After the land was found, there were still a few steps and months before we could get the ownership.
1. Sign an agreement to purchase and pay a deposit of 5% from the agreed price.
TIPS: Some bargaining may be proceed the step. Generally in Malaysia, owners like to mark up the price for you to negotiate.)
2. Find a reliable lawyer to draft the Sale and Purchase Agreement (SPA). Standard template is generally used. For us, she negotiated with the sellers' lawyer to confirm the terms.
TIPS: For non-Malay buyers, be patient if you want to purchase from a Malay seller. The lawyer will need to get the Menteri Besar's (Chief Minister) consent. It may take countless years. Forget about it if you want to buy a Malay Reserve land, it is almost never!)
3. Once the SPA is finalized, just pick a good day to sign the many pages of documents. On this day we paid a total of 10% to the seller, inclusive of the deposit.
TIPS: Read through what you have sign to understand the terms.
Take note of the date. In 90 days you have to pay the other 90% of the sum.
4. Do a quick search for the best loan in town. The bank may promise you that the processing is pretty fast e.g. two weeks, but the release of the sum to the seller may take longer. Remember to count the days well otherwise you can get a penalty of 8% of the overdue days.
TIPS: The best published rate may not be the best negotiable rate. Talk to the right persons to fit your budget.
5. Things may get more complicated if you want to loan for the building of the house at the same time. You really have to finalize the house design quickly and get the local council approval within a very tight time. We didn't try to as it was too stressful.
TIPS: If you have a ready made house plan, you can save on the legal and processing fee by just applying for the loan once.
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