MIEA Q&A: Settling a Govt loan early

MIEA Q&A: Settling a Govt loan early



Malaysian Institute of Real Estate Agents (MIEA) Q&A

This Q&A series appears in the Metro Classifieds of The Star monthly. Here we feature some of the more popular questions asked by property buyers and home owners.

Settling a Govt loan early

Q. I took a Government housing loan when I was working in LLN (Lembaga Letrik Negara). Now I have retired. According to my records, this loan will be completed by August 2007. At present, I have put this house for sale/rent since it has been vacant from the beginning of this year.

How long does it take to settle the outstanding amount with the Government assuming I can get a buyer for this house?

What are the procedures required and which government departments are involved if I have to settle the loan prematurely? Do I need the services of a lawyer for this matter? - Boey Kok Soon

A. There are two options to choose from. Firstly, since you have put the house up for sale, you can continue to pay your instalments while waiting for the right purchaser. Once the Sales and Purchase Agreement is signed, you can either use the initial 10% down payment to redeem your loan or wait for the balance of the purchase price to settle your loan. Your monthly instalments are still payable until the completion of the sale. The second option is to redeem the loan before you secure a purchaser. You can appoint a solicitor who will help you write to the Treasury for the redemption sum, pay the outstanding amount and perform the discharge of charge to the property.

The second option of redeeming the property first would probably save you some time in the process of selling your property.

House buyers beware


Are house owners obliged to tell their potential buyers about the defects in their house?
Q. Are house owners obliged to tell their potential buyers about the defects in their house? Although some defects like hairline cracks, damp patches, etc, are obvious, things like faulty electrical plugs and wiring, clogged pipes, etc., will only become obvious when the buyer finally stays in the house. My friends say sellers won’t normally reveal the such defects to the buyers. So are buyers supposed to turn on every switch and run every tap in the house to check?

Is there a clause to say that buyers can hold previous owners responsible for such defects should they discover them after moving in, since they were not informed of such defects at the point of transaction? - Poh

A. This is an interesting question; we have to agree that it is incumbent upon the vendor to reveal any serious defects that cannot be seen by the eye.

However, it is generally accepted that the onus of identifying the defects is on the buyer during the viewing process. It is also a Malaysian phenomenon not to reveal as the price would go down or defects need to be rectified and the owner will have to incur expenses. Yes, you have to turn on every tap, flush all toilets, switch on all lights, check the circuit breaker and if possible, check the roof.

There are also prospective buyers who get qualified people to check the house for defects, especially ceilings, whether the house is termite infested or whether the structure is sound, etc. One way to tackle this is to go through estate agents. They are supposed to have inspected the house before putting it for sale and they generally would have advised the owners to rectify defects, if any. But purchasing a house is based on the principle: ‘as is where is’. There is no standard clause in the S&P on defects but if the buyer and seller agree, they can include such a clause.

Agents more keen on rental than sale

Q. Are real estate agents more keen on rental than the sale of condominium units?


Are real estate agents more keen on rental than the sale of condominium units?

I bought a large condo unit on Jalan SS7/15 in Kelana Jaya with plans to move from our bungalow when we reach old age. The location condo property is near the Subang Golf Club, sports stadium and income tax office. We have decided not to leave our bungalow.

We have had calls from three real estate agents regarding the condo unit, but each call was for rental and not for sale. One agent quoted the market price of RM220,000 and we were willing to accept as low as RM190,000. The place would be wonderful for someone working nearby so he/she may just walk to work and avoid daily traffic jams. Can you help? - Elsa

A. Estate agents can do both rental and sale and seldom is there a preference. We will post this mail on our website and we are sure some agents will get in touch with you.

Any property agents in Kapar?

Q. My dad has a brand new house in Kapar, Klang, which he had tried to sell for the last couple of years, but had been unsuccessful. He had engaged the services of real estate agents but still could not get any buyer. Some suggested using services of agents based in Kapar, but we have no contact with any of them. Appreciate your advice- Phillip Lew

A. Please call the Malaysian Institute of Estate Agents at 03-77277477 and we might be able to give names of agents who are active in the area.

Do you have a query on real estate in Malaysia?

Having trouble buying or selling property? How do you choose the right estate agent to market your property?

If you are facing such problems, we will be happy to help out. You may e-mail your questions to qa.metrocls@thestar.com.my (please include your location) and we will post selected questions together with our answers.

This series is supported by MIEA.