LPPSA Financing Lawyer
Housing financing documentation for civil servants through Lembaga Pembiayaan Perumahan Sektor Awam, following LPPSA procedure and prescribed forms.
LPPSA financing uses procedures and forms prescribed by LPPSA, which differ from a commercial bank loan. Legal fees are still calculated under the Solicitors Remuneration Order 2023 based on the financing amount. The most common cause of delay is incomplete supporting documents from the employing department.
Housing financing through Lembaga Pembiayaan Perumahan Sektor Awam is available to civil servants. The document structure differs from a commercial bank loan, and the procedure involves verification from the employing department.
What most often causes delay
In our experience the delay is rarely at the legal stage. It is in the supporting documents from the department. A letter confirming position, current salary slips, and confirmation of salary deduction all have to be issued by the department, and the timing of that is outside the control of the solicitors or the buyer.
For that reason the completion period in the sale and purchase agreement should be planned more generously than for a purchase financed by a commercial bank. This needs to be discussed before the agreement is signed, not once the period is nearly up.
Security in favour of the Government
The charge for LPPSA financing is registered in favour of the Government of Malaysia. That means any later dealing with the property, such as a sale or refinancing, requires a release following LPPSA procedure.
What your lawyer handles
- Reviewing the LPPSA approval letter and the conditions it contains
- Preparing the financing documents in the format and forms prescribed by LPPSA
- Coordinating with the employing department for the supporting documents required
- Attending to stamping of the financing documents
- Presenting the charge in favour of the Government of Malaysia for registration at the land office
- Coordinating release of the financing to the seller or developer
Timeline
Documents you need to prepare
- LPPSA approval letter
- Copy of identity card and authority card
- Recent salary slips
- Letter of confirmation of position from the department
- Copy of the sale and purchase agreement
- Copy of the title
Costs people often overlook
- Legal fees calculated on the financing amount
- Stamp duty on the financing documents
- Land office fee for registration of the charge
- Service tax of 8% on legal fees
When to stop and get advice first
- The property chosen does not meet LPPSA eligibility requirements
- Supporting documents from the department are slow to issue, putting the completion period in the sale and purchase agreement at risk
- Remaining service period is insufficient for the financing tenure applied for
- The property is still under a master title and requires a different security arrangement
Frequently asked questions
How long does LPPSA take compared with a bank loan?
Usually longer, because it involves verification by the employing department and LPPSA procedure. Plan the completion period in the sale and purchase agreement with that in mind.
Can I choose my own solicitors?
LPPSA has its own procedure for the appointment of solicitors. We can explain your position based on your approval letter.
What happens if I retire before the financing is repaid?
LPPSA financing terms contain provisions on retirement and salary deduction. These need to be checked against your approval letter.
Are the legal fees different from a bank loan?
The fee scale is the same, calculated under the Solicitors Remuneration Order 2023 based on the financing amount.
Ready to start your property matter?
An initial consultation with no obligation. Tell us about your matter and we will explain what is involved and what it is likely to cost.
No. 4, Jalan Setia Impian U13/3D, Setia Impian 3, Seksyen U13, Setia Alam, 40170 Shah Alam, Selangor
014-9723468 · 014-4004293 · Monday to Friday, 9:00am to 6:00pm