Home Buyer Guide

home buyer guide picture
01.   Step to Owning a Home
02.   Private Sector Loan Application
03.   Government Loan Applicants
04.   EPF Withdrawal Procedure
05.   Payment Procedure
06.   Handing Over of Vacant Possesion
07.   Joint Inspection
08.   Your Rights as a Purchaser


Register online at www.spsetia.com.my or visit any one of our sales and marketing offices to obtain a copy of the registration form from our sales personnel.

Selecting a Unit
Prior to a launch, you will be invited to visit our office to select your unit. Selection of units will be on a first-come-first-serve basis. 

Letter of Offer
Upon selecting the unit, you will be issued a letter of offer and the receipt for the initial 10% down payment. The letter of offer will contain the particulars of the property (ties) that you have purchased.

Execution of Sale and Purchase Agreement

You must execute the Sale and Purchase Agreement (SPA) at our appointed solicitor's office upon settlement of the 10% down payment within 14 days from the date of confirmation of sale.

Application for Loan and EPF Withdrawal

You are advised to apply for a housing loan instantly upon confirmation of sales. For those who are EPF members and would like to make withdrawal from your EPF account, you will have to obtain the EPF Withdrawal Form from the EPF office or download the form from the EPF website at http://www.kwsp.gov.my

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A panel of bankers have been appointed to provide loans to those who qualify, but the final decision lies with you as you are free to choose any bank/finance company of your choice. The documents required to apply a loan are:-

  • Original copy of the Sale and Purchase Agreement
  • Copy of the title deed if available
  • Photocopy of your IC
  • A copy of your last 3 month's pay or your last 6 month's bank statement (if self-employed)
  • Letter of confirmation on income and years of service from your employer
  • A copy of Income tax return/EA form for the past 3 years

Sequence of Loan Processing

  • Submission of loan application form with the necessary documents.
  • Interview by bank/finance company.
  • Letter of Offer upon approval from bank/finance company.
  • The Letter of Offer fully signed by you as acceptance of the offer and returned to the bank/finance company with a copy to the developer.
  • Bank/finance company's letter of instruction to their solicitor to prepare the loan document which may be either:
    • Deed of Assignment and Loan Arrangement (for Strata Units); or
    • Memorandum of Transfer Form 14A and Charge Form (Landed units with individual titles).
  • Letter from bank/finance company advising you to execute loan documents at solicitor's office.
  • Loan documents forwarded to bank/finance company for execution.
  • Loan documents returned to solicitors who will forward to developer for execution of Memorandum of Transfer.
  • Executed loan documents returned to solicitor for stamping and registration. Stamped loan documents forwarded to bank/finance company for safe keeping. A copy each is given to purchaser and developer.
  • Bank/finance company will release payments to developer progressively in accordance to the Third Schedule of the Sale and Purchase Agreement upon receipt of our invoice.

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As a government loan applicant, you may have been advised by your Departmental Head on the requirements for a housing loan or you may refer to the web site www.treasury.com.my for information. However, we have for your convenience, listed the following documents required for your loan application:

  • Application form to be completed in detail.
  • Letter of Confirmation and recommendation from your Departmental Head.
  • Processing fees (RM1.00 for every RM1,000.00 of loan amount).
  • Borang VII (Format VII) - Declaration from the borrower giving consent to the Federal Government to deduct from his/her salary the loan installments (inclusive of interest).
  • Copy of title deed.
  • Lampiran A - Declaration from the developer consenting to a registrar's caveat.
  • Format XIV - To be endorsed by the developer and the borrowers' solicitors.
  • Solicitors' declaration - confirmation of stakeholder and finalisation of loan documents. Borang Akuan SPP 21/86 - Lampiran IV.
  • Letter to the housing loan unit confirming the ability to settle the difference between loan and purchase price (if it is not a 100% loan).
  • Copy of Power of Attorney, if the agreement has been attested by the Power of Attorney.
  • Certificate of Fitness - for completed house.
  • The progress payment's will be released by the Housing Loan Division only when the title (landed unit) and loan agreement cum assignment (strata unit) has been registered at the land office and the High Court respectively.

Note:The above mentioned format might be changed by the government housing loan unit. The loan processing is handled by the:

Bahagian Pinjaman Perumahan
Perbendaharaan Malaysia
No 9, Kompleks Kementerian Kewangan
Persiaran Perdana, Precinct 2
Pusat Pentadbiran Kerajaan Persekutuan
62592 Putrajaya
03-8880 2000

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You must be a member of EPF.

Your entitlement would be 30% of balance available in Purchaser's EPF account II or the difference between the purchase price and loan amount (whichever is lower).


  • Submission of EPF withdrawal form together with the original copy of the Sale and Purchase Agreement
  • Photocopy of your IC
  • A copy of the letter of loan approval from your end-financier

Note: The original Sale and Purchase Agreement, Letter of Loan approval from your end-financier and your original I/C have to be sighted by the EPF officials.

Mode of Payment
The payment will be released directly to the member within a period of three to four weeks from date of submission. For more information, please refer to EPF website at www.kwsp.gov.my.

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The initial down payment as stated in our letter has to be paid to us on execution of the Sale & Purchase Agreement.

Late Payment Charge
As stipulated in the Sale & Purchase Agreement and Housing Developer's (control and licensing) Act, a late payment charge at 10% p.a. calculated daily will be levied on any overdue payment.

Example :
Invoice dated 11/4/2005 for RM28,100.00
Due date 10/5/2005 i.e. 21 working days from date of invoice.
Payment received on 16/5/2005
No. of days delayed: 11/5/2005 to 16/5/2005 = 6 days
6 days/365 x 10% x RM28,100.00 = RM46.19

To Avoid Late Payment Charges (LPC)
You can avoid the imposition of LPC by adhering to the following:-

  • Apply for your loan immediately. We will be pleased to assist you in any way possible.
  • Liaise with EPF to ensure prompt release of withdrawal sum.
  • Settle the difference between loan amount and purchase price immediately on loan approval or on receipt of invoice from us.
  • Monitor closely the loan processing with your bank/finance company to ensure that the loan documents are finalised within the grace period.
  • Liaise actively with your bank/finance company and solicitor on receipt of the invoice from us to ensure payment is made within the stipulated period of 14 days.

Progress Billing
Progress Billing is the periodical invoicing by us as and when the relevant construction stage in the third schedule of the Sale & Purchase Agreement or the Government Schedule is completed as certified by the architect.

Payment Period
A period of 21 working days from date of receipt of the invoice.

Invoice to End-financier/Treasury
Invoices are forwarded directly to the bank/finance company/the treasury with a copy to you to enable you to liaise with them for the prompt release of payment.

Mode of Payment
We advise that payment be made by crossed cheque, bank draft or money order. If possible, avoid payment by cash (except for the settlement of miscellaneous charges during the handing over of vacant possession).

Refund of Over-Payment
Refund of Over-payment is subject to the following conditions:

  • Loan has been approved by your bank/finance company.
  • Release of the first progress payment from bank/finance company.
  • Settlement of the difference between the loan amount and selling price.
  • Settlement of any outstanding late payment charge or other miscellaneous charges (if any).

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Letter of Handing Over of Vacant Possession

  • Upon completion of your unit, a Letter of Handing Over of Vacant Possession will be mailed to you notifying you to take vacant possession.
  • You are given 14 days from the date of receipt of the letter to settle all outstanding bills (inclusive of other charges) before collecting the house keys from the Customer Care Department/The Residence Club.
  • You will take possession of your unit after having paid all monies payable under the Third Schedule of the Sale & Purchase Agreement and all other monies due.

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We will arrange an appointment for a joint inspection between you and our Customer Care Department/The Residence Club. The joint inspection is designed to ensure that all specifications as per the Sale and Purchase Agreement are provided and to identify any defects or complaints. Your complaints should be in writing and will be attended by us throughout the defects liability period. Any defects which become apparent during this period not arising from your own actions will be rectified by us.

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As a purchaser you are entitled to certain rights in accordance with the Sale and Purchase Agreement. The Ministry of Housing and Local Government's Enforcement Division is the authority sanctioned by the Government to ensure that your rights as a purchaser are protected. Highlights of the Sale and Purchase Agreement

  • Your unit must conform to the specifications itemised in the Sale and Purchase Agreement
  • Your unit must be completed within the stipulated timeframe. Example:
    • Landed units: 24 months from the date of the Sale and Purchase Agreement
    • Strata units: 36 months from the date of the Sale and Purchase Agreement

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