Scenario
Jim would like topurchase a house by cash, without obtaining any loan. To save costs, Jim wouldlike todeal directly with the seller and not engaging any lawyer to handlethe transaction.
However, Jim’s friend,Joe,told him that he CANNOT complete property sale and purchase transactionwithout a lawyer.?
Mythbusted.
It is possible to complete a sale and purchase of property transaction without a lawyer if the parties have the necessary knowledge on the procedures.
The important procedures that lawyer assists in a sale and purchase transaction include:
- conduct background search of the propertyand the parties, i.e. land search, bankruptcy search or winding up search, etc.
- apply for consent, confirmation and/or approval from the relevant authorities, i.e. developer’s confirmation ofownership, state authority’s consent to transfer, etc;
- redeem the property from the existing charge;
- submit the transfer instrument to the Inland Revenue Board for assessment of stamp duty payable for the transfer; and
- present the instrument of transfer and such other relevant documents to the land officer for transfer of name.
So long as Jim is able to handle all the procedures and process without the advice and assistance of lawyer, he can complete the sale and purchase transaction without a lawyer.
Having said that, it is advisable to always engage a lawyer as the process of property transaction could involve unexpected legal issues and complications, e.g. lodgement of private caveat by third party, squatter issues, etc.
So, how much did you know about this Legal Myth?
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