Local Buyer Guide
STEP BY STEP TO OWING A HOME
Register yourself at www.bam.my or visit our sales office.
Selection of Unit (Reservation Of Unit)
Prior to a launch, registered buyers will be invited to our sales office to choose your unit. The selection of units will be done on a first come first serve basis
Letter of Offer
Upon selection of the unit, a letter of offer and the receipt for the initial 10% down payment will be issued from developer.
Execution of Sales and Purchase Agreement
You must execute the Sale and Purchase Agreement (SPA) at our appointed solicitor’s office upon settlement of the 10% down payment within 14 days.
Application for Loan and EPF withdrawal
You are advised to apply for a housing loan instantly upon confirmation of sales. Assistance will be given in the application for a house loan from our panel of end-financiers. For those who are would like to make withdrawal from your EPF account (must be EPF member), please obtain the necessary forms from the EPF Office or downloadit at http://www.kwsp.gov.my.
Letter of Offer On Loan
The letter of offer will be issued by the end-financier upon approval of your loan. You are given 14 days to accept and acknowledged the letter of offer.
PRIVATE SECTOR LOAN APPLICATIONS
Our appointed end-financier will provide loans to those who qualify. However, the final decision still lies with you, as you are free to choose the end financier of your choice.
The supporting documents required to apply the loan are:-
• Original copy of the Sales and Purchase Agreement / A copy of Sales Form from Developer
• Copy of the title deed if available
• Photocopy of purchaser(s) IC
• A copy of your last 3 months pay or your last 6 month’s bank statement (if self-employed)
• Letter of confirmation on income and years of service from your employer
• A copy of Income Tax Return/EA form for the past 3 years
• Receipt of initial downpayment
Sequence of Loan Processing
• Submission of loan application form with the necessary documents
• Interview by end-financier
• Letter of Offer upon approval from end-financier
• Letter of Offer duly signed by you as acceptance of the offer and returned to the end-financier with a copy to the developer
• End-financiers letter of instruction to their solicitor to prepare the loan document which may either be:
• Deed of Assignment and Loan Arrangement (for Strata Units/Under Master lots, whereby individual have not been issued); or
• Memorandum of Transfer Form 14A and Charge Form (Landed Units with individual titles)
• Letter from end-financier advising you to execute the loan documents at the solicitor’s office
• Loan documents forwarded to end-financier for execution
• Loan documents returned to solicitors who will then forwards to the developer forthe execution of Memorandum of Transfer
• Executed loan documents returned to solicitor for stamping and registrationStamped loan documents forwarded to end-financier for safekeeping. A copy each is given to the purchaser and developer
• End-financier will release payment to developer progressively in accordance to the Third Schedule of the Sale and Purchase Agreement upon receipt of our invoice.
GOVERNMENT LOAN APPLICANTS
For those applying for a government loan, you may have been advised accordingly by your Departmental head as to the requirements. In order to expedite your loan application, we have listed the following documents required for your loan application:
• Application form to be completed in detail
• Letter of Confirmation and recommendation from your Departmental Head
• Processing fees (RM 1.00 for every RM 1,000.00 of loan amount)
• Borang VII (Format VII)-Declaration from the borrower giving consent to the Federal Government to deduct from his/her salary the loan installments (inclusive of interest)
• Copy of title deed
• Lampiran A-Declaration form the developer consenting to a registrar’s caveat
• Format XIV- To be endorsed by the developer and the borrowers’ solicitors.
• Solicitor’s declaration-confirmation of stakeholder and finalisation of loan documents. Borang Akuan SPP21/86-Lampiran IV
• Letter to the housing loan unit confirming the ability to settle the difference between the loan and purchase price(if it is not a 100% loan).
• Copy of Power of Attorney, if the agreement has been attested to by the Power of Attorney
• Certificate of Fitness- for completed house
• The Housing Loan Division will release the progress payments only when the title (landed unit) and loan agreement cum assignment (strata unit) has been registered at the land office and the High Court respectively.
Note: The Government might change the above-mentioned format for the housing loan
The loan processing is handled by the:
Ketua Setiausaha Perbendaharaan
Bahagian Pinjaman Perumahan
Komples Kementerian Kewangan
No. 9, Persiaran Perdana, Presint 2
Pusat Pentadbiran Kerajaan Persekutuan
Loan Evaluation by End-Financiers
The Applicant must have sufficient income to qualify for the loan. The normal requirement is that the monthly loan. The normal requirement is that the monthly loan repayment should not exceed 1/3 of the applicant’s monthly income or in the case of joint purchasers, their joint monthly income.
Example: For a RM 300000.00 loan over a period of 30 years, the monthly loan payment (at 10% per annum x monthly interest) is RM 1500.00. Thus, the applicant must have a minimum monthly income of RM4,500.00(RM1,500.00×3).
Usually, the age limit for the loan payment is 55 or 65 years old, which coincides with the normal retirement age
Upon execution of the Sale and Purchase Agreement the initial down payment must be paid as stated in our letter
Late Payment Charge
As stipulated in the Sale and Purchase Agreement and Housing Developer’s (control and licensing) Act, a late payment charge at 10% p.a. calculated on a daily basis will be levied on any overdue payment.
Invoice dated : 21/9/2011 for RM 27,000.00
Due date 19/10/2011: i.e. 21 working days from the date of invoice
Payment received on : 30/10/2011
No of days delayed: 21/9/2011 to 30/10/2011 : 11days
Late Payment Charge : 11days/365 x 10% x RM 27,000.00 = RM 81.37
Avoidance of Late Payment Charges(LPC)
In order to avoid the imposition of LPC, it is recommended that you adhere to the following:
• Apply for your loan immediately. We will be pleased to assist you in any way we can.
• Liaise with the EPF department to ensure prompt release of the withdrawal sum.
• Settle the difference between the loan amount and purchase price immediately on loan approval or on receipt of invoice from us.
• Monitor closely the loan processing with your end-financier to ensure that the loan documents are finalized within the grace period.
• Liaise actively with your end-financier and solicitor on receipt of the invoice from us to ensure payment is made within the stipulated period of 21 working days.
We will bill you periodically once the relevant construction stage as stipulated in the third schedule of the Sale and Purchase Agreement or the Government schedule is completed as certified by the Architect.
A period of 21 working days from the date of receipt of our invoice is given for payment of the invoice.
Mode of Payment
We advise that payment be made by crossed cheque, bank draft or money order. If possible, avoid payment by CASH).
HANDING OVER OF VACANT POSSESSION
Letter of Handing Over of Vacant Possession
• Upon completion of your unit, a Letter of Handing Over of Vacant Possession will be mailed to you notifying you to take vacant possession.
• You are given 14 days from the date of receipt of the letter to settle all outstanding bills (inclusive of other charges) before collecting the house keys from the Customer Care Department.
• You will take possession of your unit after having paid all monies payable under the Third Schedule of the Sale & Purchase Agreement and all other monies due.
YOUR RIGHTS AS A PURCHASER
As a purchaser you are entitled to certain rights in accordance with the Sale and Purchase Agreement. The Ministry of Housing and Local Government’s Enforcement Division is the authority sanctioned by the Government to ensure that your rights as a purchaser are protected.
Highlights of the Sale and Purchase Agreement
• Your unit must conform to the specifications itemised in the Sale and Purchase Agreement
• Your unit must be completed within the stipulated timeframe. Example:
• Landed units: 24 months from the date of the Sale and Purchase Agreement
• Strata units: 36 months from the date of the Sale and Purchase Agreement