What To Do At The End of A Tenancy

When the end of your tenancy comes there will need to be a few things that you do in an effort to make sure that you are getting the deposit back that you placed on the apartment or home. These few little tips will go a long way in the securing of your deposit in an effort to make sure you are not paying for any damage or other cost.

Go through the place and look at everything, make a list of the items that you need to clean, as well as the ones that have to be repaired. This will be a crucial step in the way of taking a little time and ensuring that you are getting the desired results for the attempts that are made. Once this list has been made, then it is time to head to the store and get the needed supplies to make the cleaning or repairs.

Small things like a broken light switch cover can be taken out of your deposit and if enough of these occur, you can see it reduced by a decent amount. Another pitfall is making sure that you are not being hit with the hiring of a cleaning crew to pay for your mess that you made. Many property owners and management companies will take this charge and place it against your deposit.

Look at the lease and make sure that you are not breaking it. Many people move into a place and forget about the lease that they signed a year ago, the next thing that they know; they are being held in violation of this, breaking your lease will often result in a complete surrendering of your deposit.

A deep cleaning on your part can go a long way in helping you make sure that you are guaranteed to get your deposit back and will not be sending it to the property owner or Management Company. Things like the oven and freezer are the two big areas that see the most amount of trouble in this regard.

Following these tips and tricks are the perfect thing that has to be kept in mind when it comes to getting your full deposit back and not being in a situation that will leave you out in the dark.

This is a guest article contributed By Joe Oppedisano, a blogger friend.

July 29, 2011 | Filed Under Legal | Leave a Comment 

Common Myths on Sale and Purchase of Properties

As a lawyer who sometimes deals with the sale and purchase of properties, I’ve come across a few common myths or perceptions people have before the enter into such transactions. With that in mind, these are some of the most common myths that people have when they are about to get themselves into the selling or the buying of a property:-

If I am selling, I don’t need a lawyer
Many sellers (I’ll describe them as Vendors) assume that if they are selling (and receiving money), there is no risk on their part and therefore, there is no need to spend money appointing a lawyer to act for them. Afterall, most if not all, buyers usually appoint a lawyer. So, they feel that it would be better to just let the buyer’s lawyer do the job and all they need to do is just to sign on the dotted line. That’s perfectly fine if the Vendor is capable of understanding the legalities of the terms and conditions in a sale and purchase agreement and, if the property being sold is free from encumbrances or restriction-in-interests. Otherwise, the Vendor would have to sort out the discharge of charge or obtain a receipt and reassignment (if there is an existing loan) or to apply for state consent (if the property is leasehold) by themselves.

If the Vendor has a lawyer, I don’t need a lawyer
Likewise, some buyers think that it is perfectly okay to just rely on the Vendor’s lawyers. The thing is, the Vendor’s lawyer’s interests and professional duty is to protect the Vendor and to draft the agreement favouring the Vendor. Unless the buyer knows what he is in for, it would be foolhardy for the buyer to be unrepresented.

I will get my keys as soon as I sign the sale and purchase agreement
No, you won’t. On the average, you will probably get your keys between 1 to 3 months after the signing of the sale and purchase agreement. The agreement needs to be stamped, the transaction needs to be valued by the Inland Revenue Board and monies need to be paid. Make that longer if the property is leasehold (where state consent is required), charged to a bank and or the purchase is to be financed by a bank.

Inflate The Purchase Price So That I Can Get A Better Loan
Buyers who need a full loan to purchase a property sometimes think that if the purchase price is inflated, the banks will grant them a loan which would cover the original purchase price. Eg. the property is to be sold for RM100,000.00 but the buyer can only qualify for a loan of RM90,000.00 (usually banks offer a maximum of 90% loan). So, the price is inflated to RM112,000.00 so that the buyer can get a loan of RM100,800.00. However, they fail to realise that the banks usually will conduct a valuation of the property to ascertain the market value and the loan approved usually is dependant on the market value or the sale price, whichever is the lower. By the way, as far as the Inland Revenue Board is concerned, stamp duty payable would be based on the market value or the sale price, whichever is the higher and that can add up to quite a lot.

Inflating the Sale Price would be good for the Vendor
Some buyers persuade the Vendor to inflate the selling price for the reason described in the immediate paragraph above and pay the Vendor a little bit extra to cover any “inconveniences”. Vendors better think twice because pursuant to Budget 2010 culminating with the Finance (No. 2) Bill 2009 which was gazetted via the Real Property Gains Tax (Exemption) Order 2009 effective 1st January, 2010, Vendors will have to pay tax on the chargeable gains. And inflating the sale price would increase the chargeable gains.

December 9, 2009 | Filed Under Legal | Leave a Comment 

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