Recently, a friend from another city asked me about the steps involved in buying a sub-sale property. 

So I think will be better to share out the Info of new home buyer. 

To make it easier to explain, I’ve simplified the process into three main steps.

For those who prefer a quick overview, 

check out the visual guide in the second picture—it's what I usually share with my clients for clarity.

Here’s a straightforward explanation of the general process of buying a sub-sale property. 

This guide assumes the buyer is taking a loan, and the seller still has an outstanding loan.

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Step 1: Signing the Booking Form

Once buyer have decided to purchase the property, 

the agent will assist with preparing a booking form (also known as the Letter of Offer or Intent to Purchase). 

Buyer will also pay an earnest deposit, 

which will be kept in the agency’s client account. It is suggestable that don’t directly bank in to seller’s bank account so that to prevent some seller can’t disappear with buyer’s deposit, and the funds can be refunded if needed.

Pro Tip for Buyers:

Include a clause in the booking form which allowing the deposit to be refunded if buyer loan application is rejected. 

Most agents will also recommend this to both the buyer and seller.

Once buyer’s loan is approved, 

buyer will need to engage a lawyer to prepare the necessary agreements, 

including the Sale and Purchase Agreement (SPA) and the loan agreement. 

Buyer’s agent might recommend their panel lawyer, 

who is likely experienced due to long-term collaboration with the agency.

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Step 2: Signing the SPA

The appointed lawyer will prepare the SPA and loan agreement for buyer within 1 to 2 weeks, 

provided they have all the required documents needed from both parties. 

At this stage, the buyer will pay the remaining down payment 

(usually 10% of the purchase price, including the earnest deposit) 

and also other needed fees (e.g. MOT, Legal Fee, etc) when signing the SPA.

From the time buyer sign the booking form to signing the SPA, 

it typically takes around 15 working days. 

Since this isn’t a long period, 

I recommend that buyers get a loan pre-checking before signing the booking form to avoid unnecessary delays.

Once the SPA is signed, 

the entire process of purchase and ownership transfer usually takes about 90 working days (approximately 3 months). 

If the process isn’t completed within this timeframe, 

there’s typically an additional 1-month extension, 

but any delays caused by the buyer may incur penalty charges on the outstanding balance.

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**What Happens After Signing the SPA?**

• The bank will appoint a valuer to assess the property, 

and the valuer will need to visit the premises to complete the valuation report.

• If the seller has an outstanding loan, the buyer’s bank will make the payment in two stages:

1. The first portion will settle the seller’s outstanding loan, which takes about a month.

2. The second portion will be released to the lawyer’s firm, 

taking another month or so. 

During this time, the lawyer will handle the property ownership transfer.

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Step 3: Completion – Getting the Keys and Final Payment

Once the second portion of the payment is transferred to the lawyer’s client account, 

the seller is required to hand over the keys to the buyer within 5 working days (subject to the terms in the SPA). 

The seller will receive the balance payment upon handing over the keys.

If the process exceeds 3 months, 

the buyer is typically given an additional month to settle the balance, 

with penalties applied as outlined in the SPA.

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**Additional Notes**

This is a simplified explanation of the general process for buying and selling a sub-sale property. The steps may vary in cases where:

• The property is leasehold.

• The seller doesn’t have an outstanding loan.

• The buyer is paying in cash.

• The seller has passed away.

If you’re in Penang and need assistance with buying or selling your home, I’d be happy to guide you through the process and make it as smooth as possible.

Contact Me at 0168966255