Property Hunter Magazine Issue 63- February 2015 | Page 40

CONTRIBUTOR | Chris Tan

Using a common lawyer is not
encouraged as a lawyer acting for
both the vendor and the purchaser
could very well find himself (or
herself) caught in a conflict of
interest, and would have trouble
maintaining impartiality. As such,
you would be at a disadvantage
should your lawyer be biased in
favor of the vendor.

STAGE 4: ASSISTING IN FINANCING
ARRANGEMENT
If required, your lawyer can also make arrangements for
you to meet the bankers to arrange for your housing
loan. The bankers in turn will let you know whether you
are eligible to obtain a housing loan.
Here, you should be well aware of bank loan terms,
such as promotional and long term loan rates,
commencement dates and redemption penalties etc.
Tip: Get a loan provider of your choice rather than your
lawyer’s choice.

Here, your lawyer will request for a redemption statement
from the respective financial institution to indicate how
much is to be paid to redeem the property. Also there will
be an exchange of undertaking (legally binding promises)
between all parties, which you will need to sign. Once the
redemption sum is released and paid to the respective
financier, this process is then complete.
Tip: This stage might drag on for a long period
depending on the efficiency of the financial institution. As
such, always provide for enough time in the agreement to
facilitate this stage.

STAGE 6: TRANSFER OF LAND

There are many products out there to choose from.
(Financial Institutions, Insurance Companies, EPF,
Government Loans, Industrial Bank Grant, Islamic
Banking Products).

This process begins by sending the necessary
documents including the transfer form to the Inland
Revenue Board for adjudication who then ascertains the
amount of stamp duty that needs to be paid.

Choosing the lawyer’s recommendation is a convenient
option, but it might not be the best for your needs!
Other than the commercial terms of the loan, your
lawyer can actually share with you the unique practice
and work culture of each bank. This is extremely helpful
to manage your expectation of the bank.

Once the value of stamp duty is ascertained, the lawyer
must then collect the respective amount from the
purchaser and stamp the transfer form. Note however
that the lifespan of the transfer form is only 3 months.
Failing to register the transfer form within its lifespan
may lead to a penalty being imposed on the purchaser.

STAGE 5: DISCHARGE AND REDEMPTION
(IF APPLICABLE)

After stamping this transfer form, the lawyers will then
pres [