The 2024 Guide to Buying Subsale Property in Malaysia

Are you looking into the possibility of buying a subsale house? Or maybe you've heard others talk about subsale property and would like to learn more before choosing between a subsale house or a new one.

This comprehensive guide will help you to understand the process of buying subsale properties in Malaysia. From getting to know the subsale definition in Malaysia to overcoming the common challenges of buying a subsale house, we’ve got you covered.

Subsale house: Meaning, advantages and disadvantages

What is a subsale property? The word ‘subsale’ is made from the words ‘subsequent’ and ‘sale’.

Thus, a subsale means a property that is resold by the original owner, as opposed to buying a new property directly from a developer.

One of the key advantages of subsale properties is that they tend to have a negotiable price and are usually ready to move into. However, it can come with numerous other challenges, particularly in navigating the exhaustive subsale purchase process.

Process of purchasing a subsale property in Malaysia

In addition to weighing the pros and cons, it’s crucial to be aware of the differences in the purchasing process between subsale properties versus new properties.

One of the key differences is that the Sales and Purchase Agreement (SPA) for a subsale home is signed between the buyer and seller, while the SPA for a new home is signed between the buyer and developer.

Since the SPA of a subsale property is between you and the seller, there are a few steps you need to make sure are covered:

1. Letter of Offer

Before applying for a loan, you’ll need to sign a Letter of Offer with the seller that declares your intention to buy the property.

This legal document is normally prepared by the seller’s agent as part of their services. If it is a direct sale without agents, the document is usually prepared by the seller. In such cases, buyers are advised to pay a lawyer to review the document before signing to ensure it is legally binding and protects their interests.

The Letter of Offer should clearly set the terms and conditions for the sale of the home, including but not limited to:

1. Legal names of buyer and seller
2. Purchase price and deposit
3. Period given to secure financing

2. Property valuation

You’ll want to ensure the offer price of your desired property matches its value based on several factors like market price, location, condition, and others. To achieve this, consider hiring a property valuator or using a bank's panel valuator for accurate pricing.

Avoiding common challenges of subsale property purchase

When purchasing a subsale property, you also want to make sure that you don’t inherit any problems related to the property from the previous owner. To avoid these challenges, be sure to keep this checklist in mind:

1. Outstanding bills

Ensure your lawyer checks for any outstanding bills such as quit rent, maintenance fees and utilities that the seller needs to pay before the date of vacant possession. Any outstanding payments that have not been cleared need to be set off against the total agreed sales purchase price.

2. Bill reimbursement

For some bills, the buyer may need to reimburse the seller a portion that has been pre-paid in advance. For example, the seller may have paid management fees that are charged quarterly, so the buyer will need to reimburse the seller for any months paid in advance.

3. Transfer of ownership for utilities

Finally, you’ll need to ensure the buyer initiates ownership transfer of the property’s utilities to your name, including water, Indah Water Konsortium accounts and utilities. This will help avoid unnecessary interruptions in service when you’re ready to move in.

Taking the final dive to buying a subsale home

The process of buying a subsale property can be tricky to navigate, but it will all be worth it when you get your dream home for a great price and with minimal challenges. Be sure to engage a lawyer with plenty of experience in the process of buying subsale houses. With the right preparation, you’ll be on the right track to buying a subsale home with confidence.

Have you found your dream subsale home? Before starting the process of purchasing a subsale property, check the financing amount that you can afford with our home loan affordability calculator. If you are satisfied with the terms, you can apply online immediately for a hassle-free experience.

💡 The information provided above is purely for educational purposes.