Schedular Home Loan Drawdowns 1
What’s next after SnP? Well the situation varies depending on whether or not the property you have bought is under construction or is already completed. In this article I will only cover property that is under development. For fully completed properties, usually upon signing SnP, the previous owner will hand over the keys to the unit to you once the property is fully paid up in cash or by the bank.
For property under construction, (provided you are taking a bank loan), the developer will write in to your bank at certain intervals to request for a drawdown of the Loan amount. Below is a table of the allowed schedular drawdowns as stated in your generic SnP agreements.
|
1 |
Immediately upon signing Sales and Purchase Agreement (SnP) | 10% |
| 2 | Within 21 working days after receipt by the purchaser of the vendor’s (or Developers’) written notice | |
| a) The foundation and footing works of the said building | 10% | |
| b) The reinforced concrete framework of the said building | 15% | |
| c) The walls of the said Building with door and window frames placed in position | 10% | |
| d) The roofing, electrical wiring, plumbing(without fittings), gas piping (if any) and internal telephone trunking and cabling to the said building | 10% | |
| e) The internal and external plastering of the said Building | 10% | |
| f) The sewerage works serving the said Building | 5% | |
| g) The drains serving the said Building | 5% | |
| h) The roads serving the said Building | 5% | |
| 3 | On the date the Purchaser takes vacant possession of the said Building with water and electricity supply ready for connnection | 12.5 |
| 4 | Within 21 working days after receipt by the Purchaser or the Purchaser’s Solicitors of the separate document of title to the said lot with a valid and registrable Memorandum of Transfer duly executed by the Vendor or on the date the Purchaser takes vacant possession of the said Building, whichever is later | 2.5% |
| 5 | On the date the purchaser takes vacant possession of the said Building as in item3 and to be held by the Vendor’s solicitors as stakeholder for payment to the Vendor as follows | |
| a) 2.5% at the expiry of 6 months after the date the Purchaser takes vacant possession of the said building | 2.5% | |
| b) 2.5% at the expiry of 18 months after the date the Purchaser takes vacant possession of the said Building | 2.5% | |
| TOTAL | 100% |
Note that the above schedule only applies to Landed properties under construction. To counter check the developer, a third party architect is hired to audit the work that has been done on your property. Upon obtaining the required certification from the architects, the developer will send a letter to the bank, your Loan Lawyer and yourself requesting for the drawdowns as per the table above.
Lastly, the drawdowns for section 2, can be done in any order and does not necessarily have to be done sequentially.
Tags: Home Loans, Malaysia, Schedule, Drawdowns, Under construction, Property, Properties
