Robert Yong@Old Klang Road: I recently viewed a property and am considering putting in an offer for it. However, I found out that the owner has been blacklisted by Bank Negara for not settling a loan for his first property and it is now on auction. The property I am considering to buy is his second property which is not blacklisted. Will this affect the S&P of this property and should I go through with the transaction?
RED: The fact that the first property is put up for auction does not affect the capacity of the owner to sell his second property and does not affect the legality of the SPA. Nevertheless, if the purchaser plans to apply for a loan to finance his purchase of this property, some banks do conduct CTOS search on the owner and if the owner is found to have been blacklisted by Bank Negara, the banks may not be willing to proceed with the loan. This is not a legal requirement but rather a criterion used by certain banks in processing a loan application.
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