Procedures/Steps to be Taken After Signing Sale and Purchase Agreement
Property With Title Case
Before/upon the signing of the Sale & Purchase Agreement (SNP) by both parties, the steps that should be taken by the Solicitors are:-
1. Prepare the Draft of the SNP.
– Do Land Search to know the ownership & details of the Property.
– Prepare Documents.
2. Fair the SNP & Documents.
3. Both Parties i.e. the Purchaser and the Vendor sign the SNP and also settle the legal fees & disbursement.
4. Solicitors to witness and date the SNP.
5. Purchaser’s Solicitors to send the SNP to the Stamp Duty Officer for stamping.
6. Purchaser’s Solicitors to enter caveat on behalf of the Purchaser.
– in case the Property need consent, the Vendor’s Solicitors have to apply for the consent upon receipt of all relevant Documents.
7. The Original & Duplicate SNP shall be forwarded to Purchaser for safe keeping.
– the duplicate SNP shall be forwarded to Vendor’s Solicitors.
8. When the Purchaser’s loan has been approved, the Financier’s Solicitors shall write to SNP’s Solicitors informing which Financier they are acting-for.
9. The Vendor’s Solicitors shall request for the Redemption Statement from the existing Chargee (whereby “Letter of Authorisation” from the Borrower to be attached).
– usually it will take 7 to 14 working days to obtain the Redemption Statement issued by the Existing Chargee.
10. Purchaser’s Solicitors shall reply to Financier’s Solicitor’s letter and proceed to adjudicate the
Memorandum of Transfer (MOT) at Stamp Duty Office
– Notice of Assessment will be issued by the Stamp Duty Office within 1 month.
– Upon receipt of the Notice of Assessment, the Purchaser’s Solicitors shall pay the full stamp duty (provided Purchaser has deposited the stamp duty with the Solicitors).
11. After receiving the Redemption Statement from the existing Chargee, the Vendor’s Solicitors shall forward the Original Redemption Statement to the Financer’s Solicitors together with relevant documents requested.
12. The Vendor’s Solicitors shall monitor the release of the Redemption cheque and upon receipt of the same, the Vendor’s Solicitors shall forward the cheque to the existing chargee together with the Discharge of Charge Form (16N) which has been prepared beforehand.
13. The existing chargee will normally return all the Original Documents which under their custody together with the Discharge Form within 2 weeks after they received the Redemption Cheque.
14. The Vendor’s Solicitor shall forward the Discharge Form for stamping at the Stamp Duty Office.
– Both Vendor’s & Purchaser’s Solicitors to forward Original documents (including the Discharge Form) to Financier’s Solicitors accordingly for them to register at the Land Office.
– Financier’s Solicitors will advise for final release of Balance Loan Sum.
– Purchaser’s Solicitors to monitor release of the Balance loan sum cheque (usually within 1 week)
– Ask keys and latest Bills duly paid rom the Vendor’s Solicitors.
15. Both Solicitors for Purchaser and the Vendor shall compute Appotionment accordingly and check on the arrangement for delivery of keys to the relevant Parties. The balance Purchase Price /balance Loan Sum together with differential’sum (if any) shall be released to the Vendor by the Vendor’s Solicitors.
16. Purchaser’s Solicitors shall give a copy of the relevant documents (e.g. MOT duly stamped. Notice of Assessment, Principal SNP, Cetificate of Fitness, Quit Rent, Assessment, all utilities Bills, title etc) to Purchaser.
Source: Lavinia, Dell Akbar, Tee & Partners (Advocates & Solicitors)