What to Do Before Buying Your First Property

Buying your first home is an exciting milestone—but it can also be overwhelming without the right guidance. At Chan & Chia, we’ve helped countless first-time buyers in Seremban and Negeri Sembilan navigate the legal and financial steps of property ownership with confidence. Whether you're purchasing a new development or a subsale unit, proper planning and legal advice are key to avoiding costly mistakes.

A Legal & Practical Guide for First-Time Home Buyers in Malaysia

1. Know your financial eligibility

Before searching for a home, assess your budget, savings, and loan eligibility. Use online loan calculators and consult banks for pre-approval. Consider the following expenses:

Down payment / Deposit (typically 10%, earnest deposit is typically 3%)
Legal fees and stamp duties (calculated as a percentage of the property value / loan sum)
Valuation fees (if applying for a loan)
Repairs, renovation and furnishing costs
Differential sum – where the loan is insufficient to cover the purchase price, the buyer must pay the difference before the bank will disburse the loan.

These expenses can quickly add up so make sure you have the cash up front before intitiating the property transaction.

2. Survey the property market

Research property prices in the vicinity of your target area. Compare between:

New launches vs. sub-sale properties
Freehold vs. leasehold titles
Landed vs. high-rise homes

Engage a local conveyancing lawyer or property agent. Local knowledge helps avoid overpaying or buying in an unsuitable location.

3. Inspect the property

Don’t trust every property advertisement you see online. Most advertisements of new properties do not use actual photos of the sale units.

When buying a new property, look into the reputation and trustworthiness of the Developer. When buying a second hand property or subsale property, conduct a thorough inspection of the following:

Structure and fittings
Signs of leakage or defects
Occupancy status (whether currently tenanted or leased)
Utilities and quit rent/assessment bills – whether paid up to date
Renovations done to the property

4. Do your due diligence

Find out who the property owners are, whether there are any encumbrances on the property, whether the relevant approvals have been obtained for renovations done etc.

Sounds like too much of a hassle? Appoint a trusted conveyancing lawyer to conduct the due diligence for you.

5. Hire a trusted conveyancing lawyer

A conveyancing lawyer ensures that your Sale and Purchase Agreement (SPA), loan documents, and property transaction are legally sound. At Chan & Chia, we protect first-time buyers by:

Conducting due diligence (including land searches, bankruptcy searches etc.)
Reviewing contracts and negotiating favourable terms
Ensuring compliance with Malaysian laws
Preparing and filing real property gains tax returns forms
Liaising with developers, banks, and land offices

6. Understanding the loan documentation

Understand the following before accepting the loan and signing the security documents.

Type of loan (Islamic vs Conventional)
Interest rates (fixed vs. floating)
Loan tenure
Early repayment penalties
MRTA (Mortgage Reducing Term Assurance)

Your loan lawyer can help to explain the terms to you before signing.

Conclusion

Buying your first property is a major financial and legal decision—one that requires careful planning and trusted advice.

From checking your loan eligibility to reviewing your Sale and Purchase Agreement, every step matters. With the right legal support, you can avoid costly mistakes and enjoy a smooth, stress-free transaction.

At Chan & Chia, we’re here to guide first-time home buyers in Seremban through the entire property buying process.

Why choose us?

For over 50 years in the industry, Chan & Chia has consistently been relied on and trusted our many clients. We are a firm deeply rooted in old traditions, and culture while being fully equipped for the modern legal landscape. Our team of experienced professionals are always ready to help.

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