You can generally sell a property while the loan is still outstanding. In a typical financed subsale, part of the purchase funds goes towards settling the seller’s existing loan. The lawyers coordinate the payment and release of the bank’s security documents as part of the transaction. The exact process depends on the property and financing arrangements. Vin Cheng & Co’s subsale guide explains this sequence.
Before accepting an offer, there are three things to understand: how much the bank needs, what you may receive after costs, and what could affect completion.
1. Get the bank’s settlement figure
Your original loan amount is not the amount you need to repay today. Your banking app’s displayed balance should also not be treated as a final settlement quotation.
Ask your bank, or have your lawyer request, a redemption statement. This sets out the amount and instructions for settling the loan.
For example, CIMB’s property financing FAQ advises borrowers to obtain the bank’s redemption letter and follow its settlement instructions.
Also ask your bank whether your particular facility has any early-settlement charges, notice requirements or other amounts payable.
Getting this information early helps you assess an offer with more confidence.
2. Work out what you could actually receive
The agreed selling price is only the starting point.
For illustration:
- Selling price: RM550,000
- Bank redemption amount: RM380,000
- Difference before selling costs and other adjustments: RM170,000
That RM170,000 is not your final take-home amount or your profit.
Ask your lawyer for an estimate covering legal fees, relevant transaction expenses, any agreed agency fees, outstanding property charges and tax obligations.
Real Property Gains Tax may also need to be considered. HASiL explains that RPGT applies to chargeable gains from property disposals; your treatment depends on your circumstances. Check the official HASiL RPGT guidance rather than assuming a fixed percentage of the selling price is your tax bill.
3. Check whether the sale would leave a shortfall
What happens if the bank needs more than the property will sell for?
Suppose the redemption amount is RM430,000, but the offer is RM400,000. There is already a RM30,000 gap before other selling costs.
Raise this with your bank and lawyer before committing to the sale. Ask how the shortfall would need to be funded and whether the proposed transaction can proceed.
A buyer’s offer alone does not resolve that gap.
4. Separate an accepted offer from a completed sale
Agreeing on a price is an important milestone. You still need to understand when the transaction can complete and when the remaining proceeds can be released.
The title, required consents, buyer’s financing and release of existing bank documents can affect the process. The Malaysian Bar identifies redemption, discharge and title delivery as part of the work involved in a seller’s subsale transaction. Malaysian Bar guidance
Before agreeing to a deadline, ask your lawyer:
- What needs to happen before completion?
- Which approvals or documents are outstanding?
- When could I reasonably expect to receive the balance?
- What happens if either party cannot meet the agreed dates?
Discuss your property and deadline
If you need to explore a sale urgently, tell Sell House Now about the property, your deadline and any repayment difficulty. We can review whether a direct purchase or suitable-buyer route may be appropriate. Ask your bank and lawyer to confirm the settlement figure, possible shortfall and when any remaining proceeds could be released.
The initial conversation and evaluation are free, with no obligation to accept an offer. You can also WhatsApp the team on 016 675 8378. A possible sale price and timeframe depend on a review of the property and transaction.
This article provides general information. Have your bank and conveyancing lawyer confirm the figures and requirements for your property.