Balance Purchase Price in a Malaysian Property Sale: What It Means & When You Pay

The balance purchase price is the remaining part of the agreed property price after the deposit — typically the 90% owed once the 10% deposit is paid on signing the Sale and Purchase Agreement (SPA). It is settled within the completion period stated in the SPA (commonly three months, extendable by one month with late-payment interest), and is usually funded by a bank or LPPSA loan released directly to the seller's solicitor. This guide explains what the balance purchase price is, when it is due, who pays it, and what happens if it is late.

In short: deposit (usually 10%) is paid at the SPA stage; the balance (usually 90%) is paid at completion, mostly from your loan. Miss the completion deadline and late interest applies — and in the worst case, the SPA's default clause can put your deposit at risk.

What is the balance purchase price?

When you buy a property, the price is normally paid in two stages. First, a deposit — commonly 10% of the price, which includes the 2%–3% booking sum you may have already paid. Second, the balance purchase price — the remaining amount (usually 90%) needed to complete the purchase. The balance is what your bank or LPPSA loan is largely for.

When is the balance purchase price paid?

The balance is due within the completion period fixed in the SPA. For a subsale of a titled property this is commonly three months from the SPA date, with a further one-month extension usually allowed if you pay late-payment interest (the rate is stated in the SPA, often around 8% per annum on the outstanding balance). The exact terms are whatever the SPA says — which is why the SPA drafting matters.

How is the price split?

Who pays the balance and how?

The buyer pays the balance — but rarely all in cash. Most buyers fund it with a housing loan or LPPSA financing, which the lender releases directly to the seller's solicitor, who acts as stakeholder. If the seller still has an existing loan on the property, part of the balance is used to redeem (discharge) that loan first, so the title can be transferred to you free of the bank's charge. Your conveyancing lawyer coordinates this so the money and the title move safely and in the right order.

"The balance almost always comes from the buyer's loan, so the timeline is driven by how fast the financing is documented. Buyers who get loan approval early rarely have completion problems." — Akmal Saufi, principal of ASCOLAW (Tetuan Akmal Saufi & Co).

What happens if the balance purchase price is late?

If you cannot pay the balance by the completion date, the SPA usually allows an extension (commonly one month) on payment of late interest. If you still fail to complete after the extended period, the SPA's default clause takes over — which, depending on the wording, can allow the seller to terminate and forfeit part or all of the deposit. This is exactly why a well-drafted SPA and early loan approval matter so much. For a full picture of the costs involved, see our legal fees guide.

Frequently Asked Questions

What does balance purchase price mean?

It is the remaining amount of the property price after the deposit — usually the 90% you pay at completion, mostly funded by your loan.

How long do I have to pay the balance?

Within the completion period set in the SPA — commonly three months for a subsale, often extendable by one month with late-payment interest.

Is the deposit part of the purchase price?

Yes. The deposit counts towards the total price; the balance purchase price is simply what is left after the deposit is applied.

What if I cannot pay the balance on time?

You may be able to use the SPA's extension with interest. If you still cannot complete, the default clause can allow the seller to terminate and forfeit the deposit — the exact outcome depends on the SPA.

Next steps

The balance purchase price sits at the heart of every property completion, and getting the SPA terms and loan timing right is what keeps a deal on track. When you are ready to move forward, speak to an ASCOLAW conveyancing lawyer for a short consultation and a clear cost estimate.

This article is for general information only and does not constitute legal advice. Every property transaction is unique. Please obtain specific advice from a licensed lawyer before acting on any part of it.

Related guides

• What is conveyancing in Malaysia? Meaning, process and who handles it

• Buying property in Malaysia as a foreigner: what you can buy and the process

• Legal fees for buying and selling a house in Malaysia (2026)