Buyer Guide
1
Introduction of
1.1
Overview
1.2
Climate
The weather is pleasant, warm and
balmy with moderate rain throughout the year, with temperatures ranging from 21°
to 32° Celsius in the lowlands. Humidity is between 85% and 95% but temperatures
rarely climb above 32º during the daytime and 23º at night. In the highlands,
temperatures can fall to as low as 16° Celsius. Annual rainfall is heavy at
2,500mm (100 inches), and there are frequent heavy downpours with thunder and
lightning.
1.3
Language
Bahasa
Bahasa
1.4
Religion
:
1.5
Environment
The natural surroundings are
beautiful and diverse, with plenty of unspoilt countryside and rainforest,
pristine beaches and tropical islands, and cool hill stations and mountain
retreats.
1.6
Education
The country has one of the best
developed and quality educational systems - both public and private. There are
international schools of repute in all major towns with English as the medium of
instruction. There are very good international schools in all the major towns
which offer English as the medium of instruction. There are also international
schools in
1.7
Communication and transport
There are good communications and
transport links throughout the country, and numerous world-class hotels and
resorts. The whole country is very well connected with up-to-date, modern road,
rail, sea and non-stop flights to every other Asian capital. Public transport by
buses, taxis, trains and planes are comfortable, efficient and relatively low in
cost.
1.8
Food
All the food of the world can be
found here at very reasonable cost. Malaysian cuisine is world-renowned for its
variety and excellence. Malay, Chinese and Indian food is available everywhere,
and food from all over the world can be found in restaurants and hotels in the
main urban centers. Some of the best food can be bought very cheaply at roadside
stalls and small restaurants and cafés, and hygiene is generally good. Malay
people are Muslims and as such they only eat Halal food. They eat no pork and
drink no alcohol. During the month of Ramadan Muslims are expected to fast
during daylight hours.
1.9
Sport
1.10
Social Culture
Physical signs of affection in public
are frowned upon and on the East Coast of peninsular
There are certain areas of mosques
that should not be entered by non-Moslems. Signs are often displayed or people
will inform you. Conservative dress is always required in all parts of
mosques.
2.
It is relatively cheap to rent or to purchase a house or apartment in
A lot of new development and used
home are available for sales and rent (with
furnished, semi-furnished and unfurnished) can be found via our web
site.
2.1
The standard procedure for renting a property entails:
·
Signing a
letter of offer and paying one month rent as an "Earnest
Deposit"
·
Within 7
days, paying two months rent as a "Security Deposit", ½ month rental as a
"Utility Deposit" (for electricity, power etc), stamp duties and
disbursements.
·
Signing
and retaining a stamped copy of the Tenancy Agreement.
2.2
The
standard procedure for purchasing a property is:
·
PAY 3% OF
PURCHASE PRICE AS EARNEST DEPOSIT [Sign Letter of
Offer]
·
PAY 7% OF
PURCHASE PRICE 14 DAYS LATER [Sign
·
PAY 90% OF
PURCHASE PRICE 3+1 MONTHS LATER
·
On the
acquisition of real properties by foreign interests Foreigners purchasing
properties in
a. For more details,
please call the FIC at 03-88882929
b. Foreigners are eligible
to buy 2 houses at a cost of not less than RM150,000 each.
c. For this purpose, they
are also entitled to apply for a loan from a local bank for 60% of the purchase
price.
d. Legal fees payable,
stamp duty and agency fees (if used) are also payable as shown
below:-
2.3
Malaysia Second Home
Program
It is open to all citizens of
countries recognized by
Having a reputable sponsor can be
helpful. However, this condition is not required if the financial background and
status of the applicant satisfies the Processing Officer.
To have a medical report from any
recognized hospital.
A medical health insurance valid in
The successful applicant cannot seek
gainful employment in
3.
Some Important
Aspects for House Buyers
(Information
from Ministry of Housing & Local Government of
3.1
Before you decide to
buy a house, ensure that:-
·
The housing developer
has a license and it is still valid.
·
The housing developer
has an advertisement and sales permit and it is still
valid.
3.2
Determine the house
type
For landed property
such as bungalows, semi-detached houses and terrace houses, the expected date of
completion is 24 months from the date of signing of the Sales and Purchase
Agreement.
3.3
Type of Land
Please ensure whether
it is:-
3.4
Brochure Information
Brochures are given
free by the developers. Please ensure the brochure has the following
information:- ·
The licensed housing
developer
·
Authorized agents (if
any)
·
Those holding power
of attorney (if any)
·
The project
management company (if any)
3.4.4
Land
Status:-
·
Freehold
·
Leasehold – number of
years left
·
Encumbrances –
whether the land has been mortgaged to the bank for a
loan
3.4.5 Location
Description
·
Building material
specification
·
Size of building
·
Amenities/services
3.4.6
Name of housing
project (if any)
3.4.7
Expected date of
completion
3.4.8
Price of each type of
house
3.4.9
Number of units for
each type
3.4.10
Reference number of
the approved building plan and name of the local authority.
Agreement as per
schedules G and H of the Housing Development (Control and Licensing)
Regulation 1989.
3.5
First
Payment
The first payment of
10 per cent must be made upon signing of the Sales and Purchase Agreement.
Please ensure the date of signing of the SPA and the date of first payment are
the same.
3.6
Architect
Certification
Make sure any demand
by the developer for installment payment is supported by a certificate duly
signed by an architect or a certified engineer.
3.7
Interest on Late Payment
If the buyer or end
financier for the buyer fails to pay the developer the progressive
payment/installment within 21 working days from the date of the written notice
of payment from the developer, the buyer will be charged an interest of 10 per
cent per annum on the installment not paid.
3.8
Termination of the Sales and
Purchase Agreement
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 AR
registered post of its intention to terminate the SPA.
3.9
Infrastructural
Maintenance Fee
Buyers must 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:-
·
For land and
building
(Road, driveway,
drains, sewerage, pipelines and sewerage tank for the housing
development)
·
For subdivided
building 3.10
Maintenance and
Management Fee
From the date of
vacant possession the buyer shall be responsible for paying for services such
as:-
3.10.1
For land and building
·
Refuse removal,
upkeep of drains and grass-cutting on the road reserves
·
The buyer is
responsible for such payment until such responsibility is taken over by the
proper authority.
·
The buyer must pay a
six months’ deposit upon being handed vacant possession for the services to be
rendered. After six months, if the services are still not taken over by the
relevant authority, any subsequent payment shall be payable on a monthly
advance.
3.10.2 For subdivided
building
·
Payment is for the
cost of maintaining and managing the common area and payment starts when vacant
possession is handed over.
·
The buyer shall pay
one (1) month’s deposit and three (3) months’ advance in respect of the
maintenance service charges and any payment thereafter shall be payable on a
monthly advance.
·
Maintenance fee must
be paid to the developer from the date of vacant possession up until the
formation of a management corporation under the Strata Title Act
1985.
·
Once the management
corporation is formed under the Strata Title Act 1985, maintenance services will
be handled by the management corporation and the buyer must pay the maintenance
fee to the management corporation and not to the developer.
3.11
Sinking
Fund
For subdivided
building only.
3.12
Payment of Quit Rent,
Rate Assessment, etc
From the date of
vacant possession or date of assignment, whichever is earlier, the buyer is
responsible for the quit rent, assessment, rate payment and other charges
relating to the property bought.
3.13 Vacant
Possession
Vacant possession on
the building complete with water and electricity connection must be handed over
within 24 calendar months from the date of signing of the SPA for landed
property and 36 calendar months for subdivided building. (1) Certificate from the developer’s
architect stating that
a. The building is
completed
b. Water and
electricity are ready for connection
(2)
The developer has
applied for:
3.14
Damages
If the developer
fails to deliver vacant possession of the building as stipulated by the SPA, it
must pay damages calculated on a daily rest, 10 per cent per annum of the
purchase price.
3.15 Defect liability
period
The defect liability
period is 18 months after the date of vacant possession.
3.16 Enquiries and
complaints
You may contact:
Monitoring and Enforcement Division |
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