Now that both Mr & Mrs Tan and Mr Chan have signed the Sales & Purchase Agreement, they’ve to wait for the loan to be disbursed. Once the loan has been disbursed then only the purchasers can take vacant possession (VP) of the property.
The standard “waiting period” is 3 months. The bank will disburse the balance of the purchase price to the vendor – Mr Chan. In this case, Mr & Mrs Tan has taken a 90% loan of RM670,000. The bank will disburse RM603,000 to Mr Chan, and Mr & Mrs Tan have to then service the loan of RM603,000.
While waiting 3 months for VP, purchasers can negotiate with the vendor to allow them to handover the keys and take vacant possession earlier. This is subject to the individual vendor’s comfort level and on a case-by-case basis. If the property is vacant and unoccupied, there is a higher possibility of handing over earlier. If the same property is fully furnished, owner-occupied, and tenanted, the chances of having an earlier VP is slimmer.
If it was a cash purchase, purchasers don’t have to wait for standard 3 months. They can take vacant possession of the property earlier than 3 months. Then again, it has to be mutually agreed between the purchasers and the vendors. If the vendor is currently occupying the property, he may need time to vacate the property.
For Mr & Mrs Tan, they’ve to wait for 3 months as Mr Chan was still staying in the property and the loan had to be fully disbursed by the bank. Mr Chan also needed the 3 months to move his belongings.
When the money had been fully disbursed to the vendor – Mr Chan, he then has 1 to 3 working days to vacate the property. By law, the vendor has to vacate the property within 1 to 3 working days. Failing to do so, the vendor will incur a penalty for unlawful possession of property.
In addition to vacating the property and handing over the keys, there are a few more documents the vendor has to transfer ownership to the purchaser.
- Water utility bill (Indah Water). How to Change of Ownership (click here)
- Water utility bill (Syabas). How to Change of Ownership (click here)
- Electricity utility bill (TNB). How to Change of Ownership (click here)
- Property assessment tax (cukai pintu)
- Quit rent (cukai tanah)
- Maintenance fees & sinking fund
The transfer of ownership of the water and electricity bills can be done online or at the nearest post office. The transfer of ownership of the property assessment tax and quit rent has to be done through the solicitors who will process at the relevant government departments. Maintenance fees and sinking funds only apply to strata-title properties such as high-rise properties and commercial properties. The ownership can be transferred at the property’s management office.
For more information about the above, read this article: 6 Hidden Homeowner Costs You Can’t Avoid.
Mr Chan vacated the property within 2 working days and handed over the keys to Mr & Mrs Tan. Mr Chan is a happy man as the property has finally been sold. Mr & Mrs Tan are a happy couple as they are a new home owner. As for us real estate agents, the transaction is 100% completed and its time to move on to another listing. New purchasers, vendors, buyers, sellers, landlords, and tenants await us.