What is 3 + 1 ?

After both parties signed sell & purchase agreement, in S&P will specify the deadline that buyer need to pay off to homeowner. Generally is 3 months period, otherwise buyer need to pay daily interest starting on the 4th month. After 3+1 homeowner has right to cancel the deal while forfeited the deposit.

1. When "3+1"  start calculate?

depend on house title
Freehold : start to calculate after sign on S&P.
Leasehold : start to calculate after getting the letter of consent.



2. What happen 3+1 is over?

When 3+1 over, if buyer’s responsibility (no matter what reason), owner has right to cancel the deal, while forfeited 10% of the deposit from the buyer.


      How to calculate 8% after the 4th month?


* (Deal price) x (delay days) x 8% / 365 days = Compensation amount *

* For example: 400K(deal price) x 7days(delay days) x 8% / 365 days= RM613.69


After 3+1 over, homeowner has right to forfeit 10% of down payment from the buyer and open for sale again.

Remind:
The safest way is buyer to sign on the bank loan letter offer (make sure loan is approved), then only to sign the SPA afterward loan agreement. On general procedures as long as the documents get ready, no problem to catch up the 3+1 process.

It is more concerned that some of the buyers as certain factors after sign on the S&P in period of time then only apply for bank loan, or keep delaying on the incomplete documents. The late charges of 8% interest quite a considerable amount, the worst situation when over 3+1 homeowner forfeited 10% of the down payment.