PETALING JAYA: Buyers of second-hand homes in Malaysia face a harsh reality – they must investigate potential risks themselves – including harassment by loan sharks or past links to gangs and drugs.
This is because sellers are under no legal obligation to disclose such history.
Erman Taib, chief operating officer of Quality Home Realty (M) Sdn Bhd, said subsale transactions are conducted on an as-is basis, leaving prospective buyers to assess the property for themselves.
“When a buyer views a property, they see it in its current state. If satisfied, they can proceed with the purchase.
“Once the agreement is signed, the seller cannot remove doors, ceilings or other fixtures,” he told theSun.
Erman also further explained that while banks ensure the property is free of financial encumbrances such as unpaid utility bills or caveats, there is no legal obligation to disclose non-financial issues.
“Banks will only disburse funds to the agency for payment to the previous homeowner once it is verified that there are no caveats, outstanding utility bills or other restrictions on the property. This guarantees that the property can be sold without any legal obstacles.”
He added that this contrasts with auctioned properties, where buyers often pay less but inherit all liabilities.
“For auctioned homes, buyers inherit all debts. For subsale properties, minor disturbances or past harassment by loan sharks rarely affect market value unless the property is in a high-crime ‘black area’. Homes in dangerous neighbourhoods however, do see a dip in price, as buyers weigh safety concerns for their families.”
Erman stressed that while buyers should exercise due diligence, there is no legal requirement for sellers to disclose past non-financial issues such as gang harassment.
“Ultimately, it is the buyer’s responsibility to assess a property’s condition, location and safety.”
