“The SPA Is Signed. Why Can’t I Get the Keys Yet?”

You have found the right house.

The price is agreed, your loan is approved and the Sale and Purchase Agreement, or SPA, has been signed. You have paid the deposit and started choosing furniture.

Then you ask when you can collect the keys.

“The transaction has not completed yet.”

That comes as a surprise. The house is already built. The seller has agreed to sell. You have signed everything placed in front of you.

What else is everyone waiting for?

1. Signing the SPA starts a process

For a subsale purchase, the SPA sets out the parties’ obligations, including payment, completion and handover.

Signing it does not usually give the buyer an immediate right to move in. That right depends on the agreed terms, commonly linked to settlement of the balance purchase price and other requirements.

Your deposit is only part of the payment. If you are borrowing the balance, the bank must still release the financing in accordance with its conditions.

2. “But my loan has already been approved.”

Loan approval and release of the money are separate stages.

After approval, the financing and security documents still need to be completed. The bank’s requirements must also be satisfied before funds can be released.

Depending on the transaction, outstanding matters may include documents from the seller, payment of the portion you are funding yourself, or arrangements to release the property from the seller’s existing financing.

Ask what remains outstanding on your particular file. “Waiting for the bank” is less useful than knowing which document or payment the bank still needs.

3. The seller may still have a loan to settle

A seller does not necessarily need to pay off their housing loan before agreeing to sell.

Instead, part of the purchase money may be used to settle that loan during the transaction. The seller’s bank provides a redemption statement showing the amount required and an undertaking concerning the release of the relevant security documents upon payment.

Those documents are needed for the next stages of the purchase and financing. This coordination between the parties and their banks is part of the conveyancing process.

If the redemption amount exceeds the money available for that purpose, the seller may need to pay the shortfall before the transaction can progress.

4. “I was told it would take three months.”

Check when that period actually starts.

Some SPAs calculate the completion period from the agreement date. Others start it only after a specified condition has been fulfilled, such as obtaining the necessary State Authority consent.

The agreement may also provide for extensions or exclude certain periods of delay.

An estimate given during negotiations is therefore not enough to determine your completion deadline. Ask your lawyer to identify the contractual starting date, the current deadline and any events that could change it.

This is especially important before ending your tenancy or committing to a renovation schedule.

5. Can the seller let me move in earlier?

Early access can be negotiated, but it should be documented before you take possession.

The arrangement should address what you may do, whether any payment is required, who bears utilities and damage, and what happens if the sale does not complete.

Permission to measure the rooms is different from permission to move in or begin renovation.

Imagine spending RM30,000 on a new kitchen before completion, only for the transaction to fall through. Recovering that expenditure could become a separate dispute.

Let your lawyer know about any proposed early access so the terms can be considered properly.

6. What if the seller does not leave?

First, check whether the property is being sold with vacant possession or subject to an existing tenancy.

If vacant possession is required, the seller must comply with the handover obligations in the SPA. If the property is sold with a tenant, collecting the keys may not mean you can immediately occupy it.

These arrangements should be clear before signing.

If the seller misses the contractual handover deadline, inform your lawyer promptly. The available remedies depend on the agreement and circumstances. Do not assume every subsale delay attracts the same compensation as a purchase from a developer.

7. Before booking the movers, confirm the handover position

Ask whether the balance purchase price has been settled, whether any completion requirements remain and when possession is contractually due.

Arrange a handover inspection where possible. Check the agreed fixtures and fittings, collect the keys and access cards, and record any issues promptly.

Signing the SPA is an exciting milestone. Confirming that the transaction is ready for handover will help make moving day a much smoother one.