When it comes to buying or selling a property in Malaysia, one of the most important documents you`ll need is the Sales and Purchase Agreement (SPA). This legal document outlines the terms and conditions of the transaction, including the price of the property, the payment schedule, and any other relevant details.

However, one question that often comes up is who pays for the SPA? Is it the buyer or the seller? The short answer is that it depends on the terms of the sale. Let`s take a closer look at the different scenarios.

If you`re buying a property, you may be required to pay for the SPA. This is especially true if you`re buying a new or off-plan property from a developer. In this case, the developer will usually include the cost of the SPA in the overall purchase price of the property. This means that you`ll be paying for the SPA indirectly through your down payment and subsequent instalments.

On the other hand, if you`re buying a second-hand property from an individual seller, the cost of the SPA may be negotiated between you and the seller. In some cases, the buyer may agree to pay for the SPA as part of the transaction. However, it`s also possible for the seller to cover the cost of the SPA as a goodwill gesture.

It`s worth noting that the cost of the SPA can vary depending on the complexity of the transaction and the value of the property. In Malaysia, the cost of the SPA is typically around 1% of the purchase price, although it can be higher or lower depending on the circumstances.

In any case, it`s important to understand that the cost of the SPA is a necessary expense when buying or selling a property in Malaysia. This legal document protects both the buyer and the seller by clearly outlining the terms of the transaction. It`s a good idea to work with a reputable lawyer or conveyancer to ensure that the SPA is drafted correctly and that all parties are satisfied with the terms of the sale.

In conclusion, who pays for the SPA in Malaysia ultimately depends on the terms of the sale. If you`re buying a new property from a developer, you`ll likely be paying for the SPA indirectly through your down payment and instalments. If you`re buying a second-hand property from an individual seller, the cost of the SPA may be negotiated between you and the seller. In any case, it`s important to remember that the cost of the SPA is a necessary expense when buying or selling a property in Malaysia.