You might hear before from others; you can appoint two different lawyers handling the Sale and Purchase Agreement (SPA) and Loan Agreement (LA). Or is it better to appoint one law firm to do all?

WHAT IS SALE AND PURCHASE AND LOAN AGREEMENT?

When buying a property, you will need to appoint a lawyer for the Sale And Purchase Agreement and Loan Agreement. Unless you do not require any bank financing, then the loan agreement is not required.

Sale And Purchase Agreement is a buy and sells Agreement between Seller and Buyer. The Agreement will cover every angle of the purchase and selling, including buying and handing over the property.

On the other hand, the loan agreement is a financing agreement between Borrower and Lender, in this case, The Bank.

The Bank is providing financing to you as a borrower in the order you can buy the house. In exchange, you need to pay a monthly installment and interest to the Bank within an agreeable repayment period.

The loan agreement covers intensively in the event of defaults by the borrowers. And the way the Bank comes in to take over the property in a legal manner.

As long as the borrower promptly repays the monthly payment, they shouldn’t have any issue with the Bank. However, if the account is in arrears, that’s when some of the clauses will come to effect.

SALE AND PURCHASE LAWYER

CLAIM YOUR RIGHTS

When buying a house and taking financing, one of the dilemmas is, can a buyer or borrower appoint his lawyer?

The answer is always YES—a BIG YES.

According to the National House Buyer Association, you are allowing to appoint your lawyer when purchasing a property. That means no entity or individual can forbid you from doing so.

However, there will be some entity or individual who will be pressuring you from appointing your lawyer. That can be the Property Agent, the Seller, or even the introducee himself.

The Seller might want to have some benefits toward what being put inside the Sale And Purchase Agreement.

While Property agents might want to secure their commission from the transaction, and Introducee might want to make extra.

So, it is wise to stay away from their recommended lawyer and focus on appointing your lawyer. You want to choose someone you can trust and will do an excellent job.

A great advantage to look when appointing a Sale and Purchase Agreement Lawyer is selecting a law firm with multiple panel ships with the Bank.

A law firm with multiple panel ships with many banks shows they are well recognized and trusted to handle the bank affairs. So, to some degree, they can be trusted. However, take precaution and only appoints the lawyer that you feel comfortable.

ONE LAWYER TO DO ALL

When it comes to appointing a Loan Agreement Lawyer, you can decide to select a lawyer within the bank panel listing. If the Sale and Purchase Agreement law firm is in the panelist, you can appoint them to handle the loan agreement.

Or you can works the other way around. Get your bank loan approval, and ask the Bank to introduce a bank lawyer firm. Then, you appoint them to handle your loan agreement and also the Sale and Purchase Agreement.

LOAN AGREEMENT LAWYER

THE ADVANTAGES OF APPOINTING ONE LAWYER TO DO ALL

One law firm to attend Sale and Purchase agreement (SPA) and Loan Agreement (LA) transaction should be advantageous.

Imagine this.

If you are using one lawyer to handle all, all the conversation or workflow will be handle by the same person, or if not, at least it will be within the law firm.

If a Sale and Purchase agreement (SPA) person in charge needs to pass a document to the Loan Agreement (LA) person in charge, she only needs to walk over to a cubicle, and that only takes minutes.

But if this is between two lawyer firms. There will be additional steps and works, and most importantly, it takes time, and time is so precious when you have a dateline to complete.

Giving a simple document or communicate to another party can takes hours or days. That’s how inconvenient it can be when appointing two different law firms.

Some essential documents require courier service, and the worst thing, these documents sometimes can be lost in the courier process. By using the same lawyer, you are lowering down the risk of missing documents.

Another reason we prefer to use the same lawyer is when something happens and need a fast fix. You can reach out to one lawyer to solve it fast.

If there are two lawyers, imagine this.

Let say the Bank needs a simple confirmation document from the SPA lawyer.

a. The Bank will inform the Loan Lawyer to provide the documents. – Day 1

b. The Loan Lawyer reaches out to the SPA lawyer. – Day 2

c. The SPA Lawyer might or might not solve the problem immediately. For instance, they take 1-2 days to write and send it to a courier service. – Day 3-4

d. The next day, the Loan Lawyer receives the documents. – Day 5

e. The loan lawyer sends it out the next day to the Bank. – Day 6

f. And the bank person in charge receive it the very next day. – Day 7

Then, the problem is solved.

Have you calculated how many days it takes to solve one issue?

It takes 6-7 days to solve a simple request.

This is with the assumption that the two law firms are working on average speed.

But, if both law firms are super-efficient, they might take less of the time to solve, or if they both are slow, it might take longer times. Who knows.

My point is you can get a real fix quickly within the same law firm, maybe one or two days. And two law firms will take a longer time.

I hope you do see my point here on the advantages of using the same law firm.

However, one law firm may sound great, but you need to be aware of some disadvantages of using one law firm.

THE DISADVANTAGES OF APPOINTING ONE LAWYER

One lawyer to complete the Sale and Purchase Agreement and Loan Agreement can be great, but it can go wrong too.

In the event, a client selected an inefficient or the wrong law firm to do the transaction; the process can be a nightmare for the client.

The impact is more significant as the law firm is handling both Sale and Purchase and Loan Agreement files.

If there are two law firms, they can help check and push each other work and make sure to deliver the results within the stipulated time.

If you haven’t noticed, the disadvantage of appointing one law firm is the advantage of appointing two law firms.

SALE AND PURCHASE AGREEMENT

CONCLUSION

You can appoint one or two law firms to do the Sale and Purchase Agreement or Loan Agreement. Just be aware of the pro and cons.

Whether you are appointing one law firm or two law firms, the point is to find a helpful, resourceful, and efficient lawyer.

You want a helpful lawyer guiding you through the journey of buying a house until the house key is delivered.

You want a resourceful lawyer. When things go wrong, you know you can count on the law firm to be resourceful and help you deal with the issue.

A resourceful lawyer without being efficient is hopeless. You want a lawyer who can complete the process within a stipulated period or even better, get it done before the specified period.

The truth is you wouldn’t know how efficient they will be until you have work with them.

If you haven’t worked with them, how do you measure their helpfulness, resourcefulness, or efficiency?

Well. For a start, you can get a recommendation from your friends or families. Or even better from people who are in the industry and deal with countless cases daily. Like us, Team Malaysia Housing Loan.

Here in Malaysia Housing Loan, we introduce very experienced associate lawyers and bankers to you because we know how important that is.

We have known them for years. And always keep checking on their works and make sure our client being treated well.

Without a good working relationship, we don’t think we can last this long.

So, if you guys want to give them a try, you can reach us at 012-6946746 (David).

We hope you enjoy this article and take this opportunity to check out this article – Hidden Cost Of Buying A House In Malaysia

See you in my next article.

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