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.
Invoice dated 11/4/2005 for RM28,100.00
Due date 10/5/2005 i.e. 21 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 you end-financier to ensure that the loan documents are finalised within the grace period.
- Liaise actively with you end-financier and solicitor on receipt of the invoice from us to ensure payment is made within the stipulated period of 14 days.
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.
A period of 21 days from date of receipt of our invoice is given for payment of the invoice.
Invoice to End-financier/Treasury
Invoices are forwarded directly to the end-financier/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 end-financier.
- Release of the first progress payment from end-financier.
- Settlement of the difference between the loan amount and selling price.
- Settlement of any outstanding late payment charge or other miscellaneous charges (if any).
Read Next Topic: SOLICITOR’S REMUNERATION
Read Previous Topic: LOAN EVALUATION BY END-FINANCIERS