Following are some preliminary matters that you should consider before selling your property:

     DOCUMENTS TO INSTRUCT    

Documents required (Individual)

Copy of NRIC (back and front)

Offer for Sale / Purchase

Copy of Title (if available)

Quit Rent & Assessment Receipts

Management Receipt (if applicable)

Utilities Receipts

Copy of SPA for purchase

Certificate of Fitness for Occupation

Documents required (Company)

M&A

Director's Resolution to Dispose

Forms 9, 11, 24, 49

Loan Information required

Letter of Offer

Loan Agreement

Deed of Assignment (w/a)

Latest Bank Statement

Information required

Purchaser's (or solicitor's) contact

Title Details (if copy not available)

Developer's Contact (if title not issued)

Income Tax File Reference

Income Tax Branch of Service

Documents for RPGT submission

Costs of Acquisition / Disposal:

Fees, Commission, Remuneration - surveyor, valuer, accountant, agent, or legal adviser

Cost of transfer

Cost of advertising (to find buyer)

Cost of advertising (to find seller)

[Official receipts please]

    CHRONOLOGY    

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Negotiating with Buyer

Appointing Agent

Price Negotiations

Getting Help from Solicitor

Bankruptcy Search on Buyer

Prepare Documents

Consents Required

Offer for Sale

Terms of Sale

Accepting Earnest Deposit

Instruct Solicitor

Sale and Purchase

SPA Negotiation

Execution of SPA (V & P)

Receive Balance Deposit

Conditions Precedent

Redemption

Instruct Solicitor

Redemption Statement

Redemption Documents

Completion of SPA (w/Title)

File CKHT

Redemption Sum Paid

Property Redeemed

P registers Charge

Redemption Docs to P's Sols

Title to P's Sols

Receive Balance Purchase Price

Presentation of Transfer

RPGT Retention Sum retained

Bills Apportioned

Vacant Possession

V & P meet at Property

Joint Inspection

Meter Reading

Post Completion

RPGT Assessment

RPGT Settlement

RPGT Clearance

Release of Retention Sum

Ensure Accounts (utilities) transferred

Ensure Authorities informed

Looking for a Buyer

Before you consider putting up your property or real estate for sale, you should consider the following:

     Whether there are any restrictions on the title (that would prevent or make it more difficult for you to sell)

     Whether there are any penalties for redemption or settlement of your loan facility - the Lock-in Period imposed by your financier

     Whether to engage or appoint a real estate agent

Appointing a Real Estate Agent

You may approach one (on an exclusive basis) or more real estate agents (on a non-exclusive basis). If you do appoint one on a formal basis, you should be aware of the commission due to the real estate agent for successfully securing a Purchaser for your choice property for and on your behalf.

Offer for Sale

Before you set the terms of your sale, either directly with the Purchaser or with the real estate agent, you should first consult your friendly solicitor. Your friendly solicitor will ensure that the terms and conditions of your sale are acceptable. Failure to do so may result in your solicitor being bound in his drafting by the terms and conditions agreed between parties at the time of acceptance by the Purchaser of your offer for sale.

Upon securing an interested purchaser, your solicitor will also conduct a search with the Official Assignee (if the Purchaser is an individual of Malaysian nationality) or with the Official Receiver (if the Purchaser is an incorporated body).

Sale and Purchase Agreement

Your solicitors appointed will prepare or review the sale and purchase agreement (SPA), and advise you of your rights and obligations under the SPA. Your solicitor will ensure that title to the Property does not pass until full payment of the Purchase Price is made by the Purchaser to you, and ensure that you will be compensated with interest due to any delay on the part of the Purchaser to pay for any part of the Purchase Price.

Completion of the Sale and Purchase

Before completion, the Purchaser must pay stamp duty pursuant to the notice of assessment of stamp duty payable, your financier must receive the full redemption sum (from the Purchaser or the Purchaser's Financier), the property must be properly redeemed and discharged from your financier, the balance purchase price paid to you, and the memorandum of transfer presented at the relevant land office (where property is with title) / assignment forwarded to the Developer for endorsement (for properties without title).

Vacant Possession

The final step for completion of the sale and purchase is delivery of vacant possession by the Vendor to the Purchaser and apportionment of the statutory outgoings and where applicable, utility charges. During delivery of vacant possession, both Vendor and Purchaser should perform a joint inspection of the Property and furniture & fittings, deliver all keys to the Property and agree on meter readings for electricity and water supply.

Real Property Gains Tax

The Purchaser / Purchaser's Solicitors is duty bound under Section 21B of the Real Property Gains Tax Act 1976 (Act 169) to retain 5% of the Purchase Price until the Purchaser / Purchaser's Solicitors receive the certificate of clearance issued by Director General of Inland Revenue (issued either upon payment of assessed Real Property Gains or where DGIR satisfied that no chargeable gain has arisen).

Post-Vacant Possession

After completion, the Purchaser or new owner should take steps to inform the sewerage company (IWK), land office and local council of the change in ownership. Other utility companies (TNB, Telekom, JBA) will be notified upon payment of deposit for the commencement of new account.

Definition of Real Property Company

RPC is a controlled company (not having more than 50 shareholders and controlled by not more than 5 persons) which owns real property or shares or both where the define value of such assets in not less than 75% of the value of the company's total tangible assets. "Total tangible assets" means the aggregate of the defined value of real property or shares held and the value of other tangible assets, including book debts.

(Definition of RPC only applies when there is a disposal of shares). Where Property has undergone an act of conversion by the Vendor or where there is commercialisation or trade use of the Property, it is likely that the IRD would regard the gain as income (subj. to income tax of 28%), rather than property gain.

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