Guidebook on Registering Property in Malaysia.pdf
Guidebook on Registering Property in Malaysia.pdf
Guidebook on Registering Property in Malaysia.pdf
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GUIDEBOOK <strong>on</strong> REGISTERING PROPERTY <strong>in</strong> MALAYSIASTEP 3 Redempti<strong>on</strong> StatementJohari needs to settle all of his outstand<strong>in</strong>g loan to his bank before he can sell his <strong>Property</strong> toHakimi. The SPA will address the arrangement to the effect that Johari’s outstand<strong>in</strong>g loan to hisbank will be paid by Hakimi or Hakimi’s end-f<strong>in</strong>ancier (Bank). Such payment which will form partof the purchase price is known as the “Redempti<strong>on</strong> Amount”.• Johari’s lawyer will proceed to request for a Redempti<strong>on</strong> Statement from Johari’s bank.• Johari’s bank will, up<strong>on</strong> receiv<strong>in</strong>g such a request issue a Redempti<strong>on</strong> Statement usuallywith<strong>in</strong> 2 work<strong>in</strong>g days <strong>in</strong> favour of Hakimi (if cash purchase) or <strong>in</strong> favour of Hakimi’s bank (ifpurchase with Loan) as set out <strong>in</strong> Diagram 6.22• The Redempti<strong>on</strong> Statement will specify the Redempti<strong>on</strong> Amount and the deadl<strong>in</strong>e for payment.• Johari’s bank will impose nom<strong>in</strong>al charges for the issuance of the Redempti<strong>on</strong> Statement.This request is normally made after Hakimi has obta<strong>in</strong>ed his loan.PartiesBankLawyer (act<strong>in</strong>g for the seller /f<strong>in</strong>ancier) and SellerProcess• Receives letter request<strong>in</strong>g for redempti<strong>on</strong> statement• Checks account status• Checks system for legal f<strong>in</strong>ancial status of customer• Cross references with the security document <strong>in</strong> regardsto the property descripti<strong>on</strong>• Computes redempti<strong>on</strong> sum• Issues redempti<strong>on</strong> statement• Debits account for service charge• Lawyer receives letter• Seller receives c.c. letter together with debit adviceDiagram 6 - Obta<strong>in</strong><strong>in</strong>g Redempti<strong>on</strong> Statement <strong>in</strong> Straightforward CasesBefore Hakimi’s bank releases Hakimi’s loan, Hakimi is to settle the difference between thepurchase price and the loan granted by Hakimi’s bank (the Differential Sum).In Hakimi’s case, if the loan is RM 500,000.00, the differential sum is RM 22,000.00 as derivedfrom the follow<strong>in</strong>g calculati<strong>on</strong>.Purchase Price RM 580,000.00Loan Amount Less (-) RM 500,000.00Deposit Less (-) RM 58,000.00Differential Sum RM 22,000.00