04 September, 2006

S&P and Loan Agreement

A friend of mine have the following question, perhaps, it can be share out to everyone here..

"(1)Once u sign the (1)S&P and (2)loan agreement, u will have 2obligations?."

S&P - Sale and Purchase Agreement - it is signing in between buyer and seller.. to complete a deal of transfer a property possession from one party to another.

All stamp duty and miscellanous legal charge will be imposed. Usually, stamp duty is fixed by the government under percentage control, e.g. property RM 180k, 1st Rm 100k to be charge 1%, then subsequent (balance) will be charge 2%.. some sort like this calculation... then legal fee charge is vary from every legal firms, as you can always get quotation from them for comparison purpose.

Loan Agreement - this is in between borrower and banker. It is a bond by mortgage your property to bank for loan. There are many packages available in the market. It designs to suit respective individual preference. E.g. Zero cost and Non Zero cost, Fixed Rate, fluctuation rate, etc. Go approach to banker for detailing, as they are very welcoming to assist you as long as there is business deal concern.

What you need to know here is the entire picture flow of the process. My advice here is to obtain the latest infortmation from the professional banker / lawyer to seek for their advice in the charges on S&P and loan agreement as there may have new plan to come out from time to time.