Buyer's Guidelines



Owning A Home with IJM Land
Registration
Register yourself at www.ijmland.com or visit any of our sales offices located in Selangor, Negeri Sembilan, Penang, Johor, Sabah and Sarawak.. Our sales personnel will be happy to provide you with registration forms for you to state your preferred location and type of property

Selection of Unit (Reservation Of Unit)
Registered buyers will be informed of the latest news and selection of units and this will be done on a first–come-first-served basis

Letter of Offer
Upon selection of the unit with initial 10% down payment made, a letter of offer will be issued and Sale and Purchase Agreement will follow suit.

Application for Loan and EPF withdrawal
Assistance will be provided in the application for a house loan from our panel of end-financiers. For those who would like to withdraw from your EPF account, please obtain the necessary forms from the EPF Office or download it at http://www.kwsp.gov.my.

Letter of Offer On Loan
Upon approval of your loan, a letter of offer will be issued by the end-financier, of which must be accepted and acknowledged by you within 14 days. Please be advised that you must settle the difference between the purchase price and the loan amount.

Letter of Instruction to Execute the Loan Documents at Solicitor's Office
The solicitor will be instructed by the end-financier to prepare the loan documents for the purchaser's execution. If a separate title is issued, the property will be charged to the end-financier as a security for the loan. If this is not the case, the property will be assigned to the end-financier by way of deed of assignment of the SPA.

Registration of Documents
Where a separate title has been issued, the end-financier's solicitor will normally present the Memorandum of Transfer in favour of the purchaser and the charge in favour of the end-financier for registration at the relevant Land Office. Where a separate title has been issued, the end-financier will keep the original SPA and the original Loan Agreement and Assignment as security for the loan

Release of Progress Payment
Once the loan documents have been completed, the end-financier's solicitor will advise the end-financiers to release the outstanding progress payments to us in accordance with the Sale and Purchase Agreement.

Progress Billing
Progress billing will be issued either to you or the end-financier as and when the Architect's Certificates are issued upon completion of each stage of construction as per the Third Schedule of the Sale and Purchase Agreement.. Full settlement of differential sum will be borne by purchase. The bank then will release the subsequent progressive payment. If you are a cash purchaser, you will be billed directly. The end-financier will release the progress payment upon full compliance of the terms and conditions of the letter of offer (which includes payment of the difference sum).

Final Billing and Handing Over of Vacant Possession
Upon completion, VP of the said property will be delivered to you. You have deemed to have taken delivery of the said parcel upon expiry of 14 days from the date of VP letter

Collection of Keys / Clearance Letter
We will issue a Release Letter authorising our IJM Personnel to release the keys to you upon full settlement of any outstanding payment.

Joint Inspection
A joint inspection will be arranged between you and our IJM Land Personnel / appointed Property Management so as to ensure that all specifications as per the Sale and Purchase Agreement are provided for and also to identify any defects or complaints. All complaints should be in writing and will be attended to by our Implementation Section throughout the twenty-four (24) months defects liability period. Any defects apparent during this period not arising from your own actions will be rectified by our Implementation Scheme and these written complaints will be attended to on a first come first serve basis.

Private Sector Loan Applications
Listed below are some general guidelines that govern the end-financier’s evaluation of housing loan applications. However, you are advised to check with the respective end-financier for more accurate information.
a. Choosing End-financier
We have arranged a panel of end-financiers to cater to your financial needs, though you have the right to choose your own end-financier, you are encouraged to shop around before you decide on any end-financier, taking into consideration:
1. How professional is the end-financier in dealing with customers?
2. Do they offer quality service?
3. Which loan package suits you best?
4. What are the charges involved and how often do these charges have to be paid?
b. Income/ Repayment Capacity
If your monthly income is below RM3,500, your monthly loan instalments and current commitments (e.g. car loan, personal loan, etc) should not exceed 40% of your monthly salary;

If your monthly income is above RM3,500, your monthly loan instalments and current commitments should not exceed 70% of your monthly salary.

You are required to supply evidence of your income, such as pay slips, bank statements or income-tax return forms to enable the end-financiers to ascertain your ability to repay the loan. If you are self-employed, you are required to submit business registration documents and other documentary evidence of your company to verify your income claim.
c. Age
The age limit for the loan payment is from 18 to 65 years old. However, if you are a professional/degree holder, the age limit for loan payment is up to 70 years old (depending on individual banks).
d. Margin of Financing
The amount of financing provided by a financial institution depends on the market value (for completed properties) or purchase price of the house, whichever is lower. The margin of financing can go as high as 95% of the value of the house inclusive of Mortgage Reducing Term Assurance (MRTA).

However, if you are applying a loan for your third home with your other two housing loans not settled, the margin of financing for your third home is only up to 70% of the house value.

For companies with over 2 years in operation, margin of financing can go as high as 60%.
e. Loan Tenure
The length of a loan can range up to 30 years or until the borrower reaches age 65 or any other age as determined by the end-financier.

Schedule of Payment of Purchase Price

Schedule of Payment of Purchase Price (Strata property)

No. Installment Payable %
1 Immediately upon signing the Agreement 10
2 Within twenty-one (21) days after receipt by the Purchaser of the Vendor's written notice of the completion of:-
a. the work below ground level including piling and foundation of the said Building comprising the said Parcel
b. the reinforced concrete framework and floor slab of the said Building
c. the walls of the said Parcel with door and window frames placed in position
d. the roofing/ceiling, electrical wiring plumbing (without fittings),gas piping(if any) and internal telephone trunking and
    cabling to the said parcel
e. the internal and external plastering of the said Parcel
f. the sewerage works serving the said Building
g. the drains serving the said Building
h. roads serving the said Building
10
15
10
10

10
5
5
5
3 On the date the Purchaser takes vacant possession of the said Parcel with water and electricity supply ready for connection to the said Parcel 12.5
4 Within twenty-one (21) working days after receipt by the Purchaser of written confirmation of the Vendor's submission to and acceptance by the Appropriate Authority of the application for subdivision of the said Building. 2.5
5 On the date the Purchaser takes vacant possession of the said Parcel as in item 3 and to be held by the Vendor's solicitor as stakeholder for payment to the Vendor as follows: 5
a. two point five per centum ( 2.5%) at the expiry of eight (8) months after the date the Purchaser takes vacant possession
    of the said Parcel
b. two point five per centum (2.5%) at the expiry of twenty-four (24) months after the date Purchaser takes vacant
    possession of the said Parcel.
Total: 100
Government Loan Applicants
The loan processing is handled by:

Ketua Setiausaha Perbendaraan
Bahagian Pinjaman Perumahan
Kompleks Kementerian Kewangan
No.9, Persiaran Perdana, Presint 2
62592 Putrajaya

Tel : +603 8880 2000 / 2400
Fax : +603 8880 1801 / 2788

For further details, visit http://bpp.treasury.gov.my/

Loan Evaluation by End-Financiers
Listed below is a set of criteria that governs the end-financier's evaluation of housing loan applications:
Income
The Applicant must have sufficient income to qualify for the loan. The normal requirement is that the monthly loan. The normal requirement is that the monthly loan repayment should not exceed 1/3 of the applicant's monthly income or in the case of joint purchasers, their joint monthly income.

Example: For a RM 200,000.00 loan over a period of 20 years, the monthly loan payment (at 10% per annum x monthly interest) is RM 1958.00. Thus, the applicant must have a minimum monthly income of RM 5,874.00(RM1,958.00 x 3)

You are required to supply evidence of your income, such as pay slip or income-tax return form to enable the end-financiers to ascertain your ability to repay the loan. However, if you are self-employed, you should produce sales invoices, receipts or other documentary evidence to verify your income claim.
Age
Usually, the age limit for the loan payment is 55, which coincides with the normal retirement age. Some end-financiers might extend the age limit to 60 (Dependent on Individual Banks)

  • Guarantor
  • You may be required to provide a guarantor or guarantors whose joint income should meet the above mentioned minimum requirement.

  • Evidence of additional income
  • You may have a substantial amount in your savings or fixed deposit account which can be used as evidence of additional income which the end-financiers may take into account during evaluation.

Payment Procedure
Down Payment
The settlement of thr initial 10% down payment should be made upon execution of the Sale and Purchase Agreement.

Late Payment Charge
As stipulated in the Sale and Purchase Agreement, a late payment charge at 10% p.a. calculated on a daily basis will be levied on any overdue payment.

Example:
Invoice dated : 2/6/2005 for RM 35,000.00
Due date 23/6/2005: i.e. 21 working days from the date of invoice
Payment received on : 30/6/2005
No of days delayed: 24/6/2005 to 30/6/2005 : 7 days
Late Payment Charge : 7days/365 x 10% x RM 35,000.00 = RM 67.12

Avoidance of Late Payment Charges (LPC)
In order to avoid the imposition of LPC, it is recommended that you adhere to the following:
  • Apply for your loan immediately. We will be pleased to assist you in any way we can
  • Liaise with the EPF to ensure prompt release of the withdrawal sum
  • Settle the difference between the loan amount and purchase price immediately on loan approval or on receipt of invoice from us
  • Monitor closely the processing of the loan documents with your end-financier and end-financier's solicitor to ensure that the loan documents are completed within the grace period
  • Liaise actively with your end-financier on receipt of the invoice from us to ensure payment is made within the stipulated period of twenty-one (21) working days

Progress Billing
Once the relevant construction stage as stipulated in the Third Schedule of the Sale and Purchase Agreement is completed and certified by the Architect, we will bill you or the end-financier accordingly.

Payment Period
A period of twenty-one (21) working days from the date of our invoice will be given for the payment of the progress billing.