Do Not Renovate or Move In Before The Property Is Yours

Buyer beware.

I am going to share two stories that happened to buyers/new home owner.  One happened just recently and the other few years back.

Case 1

Type of property:  Double Story Link (intermidiate)
Location : Klang
Purchase Price : RM450,000
Deposit paid : 10%
SNP : Signed

Once the Sale & Purchase agreement signed, the buyer requested via her lawyer to renovate the unit and to move in. The lawyer subsequently requested and as vendor is not living there he gave his consent. The new buyer has appoint contractor to renovate the house. They extended kitchen and porch. The job is almost 95% done when trouble started. The buyer's lawyer overlook to get buyer to sign some documents and delayed the transfer process and breached the SnP signed earlier. 

The story become heart-breaking when the vendor seeing the house has been upgraded and decided not to extend the SnP. The buyer has offer to pay extra for it but the vendor did not budge. 

Finally, the buyer claimed their loss from lawyer who is proven negligent in doing this job.

Case 2

Type of property:  Double Story Link (Corner)
Location : Shah Alam
Purchase Price : RM300,000
Deposit paid : 10%
SNP : In process

The real estate negotiator was told by vendor that his house will be auctioned by bank and are willing to sell below market price.  The negotiator found a potential buyer and dutifully informed him the vendor's predicament.  A meeting was set between vendor, bank officer and buyer.  The bank officer told buyer that if vendor managed to pay his due to bank, it wont be auctioned.  Feeling satisfied with the explanation the buyer made payment.   

Before SnP is signed he asked vendor permission to repair and renovate the house and vendor given his OK to it. In midst of construction, bank has auctioned the property and given the property to highest bidder. How it happen, I'm not so clear. 

You should be absolutely sure and certain that the house is yours only then you do whatever you want with it.  In short, only get contractor to start work when you sign acknowledge receipt of key(s).

Be careful. Do follow up with lawyer closely. Practice due diligence when buying insolvent property.