Even though both parties have mutually agreed on a price, but the deal has yet to be concluded. It is only 50% in progress. A few documents are required and have to be completed in order for the first part of this deal to be closed.
- Authorisation To Sell (ATS) or appointment letter by the seller
- Agreement To Purchase (ATP), confirmation for sale form, or booking form
- Earnest Deposit (ED) via cheque/ cash/ online transfer
The offer was accepted at night, so the next morning I met the seller to sign the Authorisation To Sell and the Agreement To Purchase, and negotiate on the professional fees. The maximum professional fees that a real estate agent is entitled to charge a seller is 3% + 6% GST, which amounts to 3.12% of the selling price. 3.12% of RM670,000 is RM20,904.
Then, in the afternoon, I met Mr & Mrs Tan to sign the Agreement To Purchase and collect the Earnest Deposit. The ED given was in the form of a cheque. The ED amounted to 3.5% of the purchase price, which is the industry standard. 3.5% of RM670,000 is RM23,450.
The ATS and ATP are to be submitted to the real estate agency for record purposes. The ED is to be deposited into the real estate agency’s client account. The real estate agency or agent acts as a stakeholder and neutral party in the transaction.
Finally, the first part of closing the deal is done! The second part is the 14 working days period to securing a loan. To Be Continued…