The real estate market in Malaysia is booming. This is a great time for people with the means to purchase real estate there. But buying real property in Malaysia can be tricky. The laws, rules, and regulations governing the sale of real estate in places like Malaysia and other parts of Asia are much different than those in the West. Before purchasing property in Malaysia it is important to know the rules. The following are some tips and guides that are essential to follow when you are looking to buy real estate in Malaysia (go StarProperty).
1. Before you purchase property or houses in Malaysia you must make sure the developer has a valid license and a valid sales permit.
2. Be sure to get a complimentary brochure from the housing developer. It should include the license number and expiration date of the developer along with the sales permit, and all the pertinent information related to the project.
3. Get the local authority’s name and the approved building plan’s reference number. The buyer’s rights can be found in the Housing Development Regulation 1989 schedules G and H under the Sales and Purchase Agreement. Become very familiar with it.
4. Make sure the date of the first payment and the date of the signing of the Sales and Purchase Agreement are the same. The SPA must be signed before the housing developer can accept any money. Make sure you get a certificate signed by a certified engineer or an architect before making an installment payment. Note that if your payment is more than 21 working days late you will be charged 10% interest. If your payment is more than 28 days late, the seller can terminate the Sales and Purchase Agreement.
5. The buyer is responsible for the cost of infrastructure maintenance from the vacant possession date until the date the management corporation or local authority takes over. The infrastructure refers to the driveway, drains, pipelines, road, sewerage, and sewerage tank for the building and the land. If it is a subdivided building, the buyer is liable for the maintenance cost of common areas. The buyer must pay a month’s deposit and 3 month’s advance payment for maintenance services. Payment is due one month in advance after that.
These are just a few of the local laws and customs of which you must be aware and adhere to when buying property in Malaysia.