Extract from The Star (26/07/10)
PROBLEMS concerning car parking lots and transfer of strata titles are some of the things purchasers of high-rise property should watch out for before they sign any sales and purchase agreement.
Lee Hishammuddin Allen & Gledhill Advocates and Solicitors partner Chia Long Thye said that purchasers of high-rise property must ensure that the parking lot that they paid for appeared as an accessorised parcel in the sales and purchase agreement.
“If it does not, then the parking lot is not yours legally but will be just a piece of common property,” he said at a talk on ‘Things To consider when Selling or Buying a Property in Penang’ at the Star Property Fair 2010 which ended yesterday.
As for transferring the strata title from sub-sales, Chia said: “Before inking the sale and purchase agreement, always ascertain that the person from whom you are buying the property from has the right to sell it, that the seller does not owe the bank a large amount of money, and that there is no caveat on the property.
Chia delivering his talk to a crowded room. “These problems will create a problem for the purchaser when having the strata-title transferred to his name.
“Purchasers must also ask whether the seller can reclaim the sinking fund or the maintenance fund, which must also be stated in the sales and purchase agreement.”
In another talk on ‘Buying Wisely From Developers’, Real Estate Housing Developers’ Association deputy chairman Albert Lai said the sell then build model was still the preferred development mode, as opposed to the build then sell approach.
“The sell and build model spurs development to counter shortage of property.“It also provides low-entry cost to new property developers, opening up the playing field for the housing industry, promotes healthy competition, and provides lower cost to customers.
“The build then sell model calls for higher capital entry to developers and provides smaller quantity of property. This results in higher housing prices for consumers,” he said.
Lai added that the property development sector was over-regulated.“This has stifled design innovation and caused delays through lengthy vetting processes,” he said.
Accountant Yap Soon Hin, who is managing director of Teoh Yap & Co, spoke on investing in retirement property in his talk titled ‘Property Investment in Financial Planning’.
He advised those looking to invest in property for their retirement to choose property that would appreciate in value until they reach their retirement years, and to hold it until the year they retire.
That way, he said, they would have a sure rental income before retirement and could sell the property if they needed funds after retirement to purchase cheaper property.
Commercial units should be fully paid off, in terms of bank loans, and yielding a passive income.
“If needed, you can draw on your EPF funds after 55 as downpayment,” he said, adding that they could also look at property in the inner city to buy, rehabilitate and renovate.