Drafting-spa.pdf

DRAFTING SPA

HDA SPA SCHEDULE G AND H Purchaser’s solicitor shall entitle to SPA. See Regulation 11(2)(4)

NON - HDA No prescribed form Vendor solicitor shall prepare SPA (BC Ruling 16.1)

CONTENT OF SPA Sale and consideration

RPGT

Default

Representation Warranties & Undertaking by Vendor

Completion

Purchase Price

VP, Apportionment passing of risk

Compulsory Acquisition

Variation

Documentation

Inspection

Time of Essence

Continued… Cost and disbursement

Notice

Mediation clause

Successors bound

RPGT – REAL PROPERTY GAINS TAX INDIVIDUAL DISPOSAL 1. Within 3 years – 30% 2. In 4th year – 20% 3. In 5th year – 15% 4. In 6th year & thereafter – 0%

NON CITIZEN DISPOSAL 1. Within 3 years – 30% 2. In 4th year – 30% 3. In 5th year – 30% 4. In 6th year and thereafter – 5%

Description of Property e.g. Principal SPA, Beneficial owner, Strata Title has not been issued by authority

Deposit of document

Execution of Deed Of Assignment

Notice of Assignment to developer on completion

Developer’s confirmation pursuant to s. 22D of HDA

Certificate from JMB

PRE-CONTRACT STAGE (FINAL) After the draft SPA has been agreed upon by parties Pair copies and purchaser will first sign and prepare deposit or balance deposit

Execution Purchaser will sign SPA and MOT/DA, as the case may be

Date SPA and then stamp

After all parties have signed, purchaser’s solicitor will stamp

CONTRACT STAGE I.E AFTER SPA DATED AND STAMPED ACTING FOR VENDOR -File CKHT 1A and 3 (if applicable) -Prepare vendor’s LU if no existing charge -Deliver the said LU, SD upon receipt of difference sum and purchaser’s financier’s LU to pay loan sum -Upon receipt of loan sum, give VP and apportionment of outgoings -Vendor to terminate utilities accounts LU – Letter of undertaking SD – Statutory Declaration MOT – Memorandum of Transfer MOC – Memorandum of Charge

ACTING FOR PURCHASER -File CKHT 502 and CKHT 2A -Lodge caveat -adjudicate MOT -Ensure loan documentation is ready -Payment of difference sum -Stamp MOT -Forward purchaser’s financier LU to vendor -Obtain vendor’s LU to financier and SD -Obtain completion documents -Present MOT and MOC to land office for registration -Release loan within completion date

LOAN TRANSACTION

POST COMPLETION STAGE Registration and collection of title

File change of name like assessment – Form I

File change of name with management corporation if the strata title is out

CONVENTIONAL

ISLAMIC

With interest e.g. FA, LA, Charge or DA

Followed Shariah law, riba is prohibited. On profit sharing basis e.g. PPA, PSA, and Charge or DA

Before drawdown Letter of Instruction

Execution of the security doc

Letter of offer from Bank

Stamped LO

Study SPA

Buy security DOC

Searches on titles like consent

Searches on parties

LOAN TRANSACTION FLOW BEFORE DRAWDOWN -Includes investigation, prepare and execute loan documentations

DRAWDOWN -After execution, get hold of all security documents

AFTER DRAWDOWN -Presentation and registration and safekeeping of security documents

Continued Notify vendor on loan obtained

Release loan before completion date

Status of MOT

Forward purchaser financier’s LU to vendor to release loan

Obtain letter of confirmation from vendor that difference sum paid

Any redemption sum

Obtain vendor’s LU to refund and SD on bankruptcy

If yes, to obtain redemption cum undertaking from existing /vendor financier

DRAWDOWN Redemption required -signed security doc. -stamped MOT -ensure supporting doc. for registration of MOT and MOC like AR and QR -obtain redemption statement cum undertaking from existing/vendor financier -lodge caveat -advise bank to release partial for redemption -obtain title, duplicate charge from existing financier -present discharge, MOT and MOC -release balance loan

Redemption not required -signed security doc. -stamped MOT -ensure supporting doc. for registration of MOT and MOC -confirm difference sum paid -forward bank’s LU to pay loan to vendor -obtain vendor’s LU to bank to refund -obtain title from vendor -present MOT and MOC -release full loan • Any consent to charge