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BuyingPropertyinMalaysia|HowToBuyaHouseinMalaysia

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BuyingcostsareverylowinMalaysia
HowhigharerealtorsandlawyersfeesinMalaysia?Whataboutotherpropertypurchase
costs?

TransactionCosts
StampDuty
Lawyer/SolicitorsFees
OtherFees
RealEstateAgentsFees
Costspaidbybuyer
Costspaidbyseller
ROUNDTRIPTRANSACTIONCOSTS
SeeFootnotes
http://www.globalpropertyguide.com/Asia/malaysia/BuyingGuide

1%3%
0.4%1%
MYR180(US$49)
2%2.75%
1.40%4.00%
2.00%2.75%
3.40%6.75%

WhoPays?
buyer
buyer
buyer
seller

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SeeFootnotes
Source:GlobalPropertyGuide

HowdifficultisthepropertypurchaseprocessinMalaysia?
ForeignerscanpurchaseanykindofpropertywithaminimumvalueofMYR1million(US$250,250)
asof2014.Theyareallowedtopurchaseuptotworesidentialpropertiestwocondominiums(max.
50%foreignownershipwithinablock)ORonecondominiumandoneofthefollowing:
Terraceorlinkedhousesabovetwostoreys,butlimitedto10%ofthetotalnumberofunitsbuilt
ofthistype
Lands/bungalowsandsemidetachedhouses,butlimitedto10%ofunitsbuiltofthesetypes

ThefirststeptopurchasingpropertyinMalaysiaistohirearealestatelawyertoassistinthe
transaction.Oncepropertyisselected,aLetterofOffer/Acceptanceissigned,anda3%depositis
expectedfromthebuyer.
Within14days,theSaleandPurchaseAgreementissigned.Thebuyermustpayanother7%deposit.
Fromthedateofthesigning,thebuyerhasamaximumofthreemonthstoaccomplishfullpayment.
TheSaleandPurchaseAgreementmustbestampedattheStampOffice.Aftertheexaminationonthe
propertyofthevaluationdepartment,StampDutyispaidtotheStampOffice.Thetransfermustbe
registeredattheLandOfficeRegistry.
Becautiouswhenbuyingnewpropertyinunfinishedcondominiumprojects.Buyersmaynotbefully
protectedagainstdefault,anissuevigorouslyraisedbytheMalaysianHouseBuyersAssociation,
whichhaspointedtoflawsinTheHousingDevelopment(Control&Licensing)Act2002,andthe
StrataTitlesAct.Thosebuyingunfinishedpropertyfromdevelopersshouldensurethatthedeveloper
hasavalidDevelopersLicenseandavalidSales&Advertisingpermit.

FootnotestoTransactionCostsTable
Theroundtriptransactioncostsincludeallcostsofbuyingandthenresellingapropertylawyers
fees,notariesfees,registrationfees,taxes,agentsfees,etc.
Currency:
MalaysiausesMalaysianRinggit.ExchangerateisatUS$1=MYR3.6777asof26thOctober2006.
StampDuty:
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STAMPDUTY
PROPERRTYVALUE,MYR
(US$)
Upto100,000(US$27,027)
100,000500,000(US$135,135)
Over500,000(US$135,135)

RATE
1%
2%
3%

LegalFee
Legalfeeisbasedonthepropertyvalue.

LEGALFEE
VALUEOF
PROPERTY,MYR
Upto150,000
(US$40,541)
150,0001million
(US$270,270)
1million3million
(US$810,811)
3million5million
(US$1,351,351)
5million7,500,000
(US$2,027,027)
Over7,500,000
(US$2,027,027)

RATE
1%
0.70%
0.60%
0.50%
0.40%
negotiableonproperty
valueexceeding
thresholdbutshallnot
exceed0.40%

OtherFees:
OtherfeesarearoundMYR180(US$49).Otherfeesincludestampingfee(MYR10orUS$3per
document),adjudicationfee(MYR10orUS$3),searchfee(MYR60orUS$16),andregistrationfee
(MYR100orUS$27).

OTHERFEES
FEES
Stampingfee(perdocument)
Adjudicationfee
Searchfee
Registrationfee
Total

MYR
10
10
60
100
180

OtherFees
OtherfeesarearoundMYR180(US$58).Otherfeesincludestampingfee(MYR10orUS$3per
document),adjudicationfee(MYR10orUS$3),searchfee(MYR60orUS$18),andregistrationfee
(MYR100orUS$31).
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RealEstateAgentsFee:
RealestateagentsfeesareregulatedbytheBoardofValuers,AppraisersandEstateAgentsMalaysia
(LLPEH).Commissionispaideitherbybuyerorseller,subjecttoamaximumdiscountof30%buta
minimumfeeofMYR1,000(US$313)percase.Thescaleisnotapplicabletosaleofforeign
propertiesinMalaysia.

AGENTSFEE
VALUEOFPROPERTY,MYR
Upto500,000(US$135,135)
Over500,000(US$135,135)

RATE
2.75%
2%

malaysiamoredataandinformation
HowlandlordfriendlyisthelawinMalaysia?
WheretobypropertyinMalaysia

Comments

#1RIAN|April13,2010
WehaverecentlypurchasedahouseinSelangor.Theloanhasbeenapprovedandwewouldliketo
knowwhoshouldpayforthevaluationfees?

#2THAMESVALLEY|May11,2010
IamtryingtosellmypropertyinMalaysia.Haveabuyerbutneedtoknowwhopaysmylawyer's
costs.Alsoistherecapitalgainstaxonthesale?Sellingitoffwithoutanyprofit.Justgettingbackthe
depositipaid.Viewsappreciated.

#3JENNIFER|July15,2010
WehaveboughtahouseinJB2yearsago.
Ifafterafewyears,oneofusnolongeraMalaysian.WhatwillhappentoourpropertyinMalaysia?
Whatshouldwedoifthesituationhappen?
http://www.globalpropertyguide.com/Asia/malaysia/BuyingGuide

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#4TEOH|July18,2010
IamaMalaysian.ThisisregardingthestampdutyonS&P.Thepropertyisanapartmentcosting
RM530Kanditisfinancedbyabankfor10years.OnthestampdutyonS&P,whenisthispayable?
IsthispayableuponsigningS&Poruponcompletepaymentoftheproperty,whichis10yearsfrom
now?Thanksandyouhaveaniceday.18Jul10

#5AHWEE|August03,2010
iplantobuyahouseat$780Kfromdeveloper.ThedeveloperwillpayfortheS&Plegalfees.
Whatarethelegalfees&stampdutychargesdoihavetopayandhowmuch?Doiahvetopaythe
Titletransferfees?

#6SHAHSALLEH|August05,2010
Hi,recentlyIsignedS&Pwithownerforpurchaseof2ndhandhouseinjohor.Butthetenor3+1
monthhadexpiredduethedelayofobtainingmybankloanMyquestion,canIextendtheS&Pwith
theconsentoftheowner?pleaseadvisewhatisthebestsolution.Thankyou

#7SOFEA|August21,2010
Lastmonth,Itriedtobuyanapartmentandpaiddeposit3%withoutnoticingthatImnoteligibleto
buythatpropertycozitwasalowcostapartment.iwouldliketoknowwhyI'mnoteligible,I'ma
malaysianandownedasmallrestaurant.Theagentdidnotwanttorefundthedepositalthoughthe
salesisnotdoneandIwassleptwithRM900forthelawerandsocalledevaluationfees.Canthe
lawerchargemelikethat.Pls,advicemehowtogetmymoneybackfromagent.thanks.

#8BECKY|August30,2010
I'mplanningtopurchaseadoublestoreyhouseatSeriKembangancostaroundRM500kfrommy
friend..Whatistheprocedureofbuyingifidon'twanttogothroughagent?

#9JAYJAY|September01,2010
Ithoughttheyincreasetheagentsfeesto3%flatnow?
http://www.globalpropertyguide.com/Asia/malaysia/BuyingGuide

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#10AHWEE|September02,2010
AhWee,haveyoumanagedtogetananswerforyourquestion?Ifyes,plssharewithmeasiamalso
havingthesamequestion.

#11YOOKMOI|March03,2015
Hithere,in2009IboughtanapartmentfromdeveloperdirectlyanditwasTOPon2011.Recentlymy
lawyertoldmetheyareinthemidstinpreparingtotransferthestratatitlefromdeveloper.Couldyou
pleaseadvicemedoIneedtopaystampduty?ifyes,atwhatrate?Basedonpurchasepriceorcurrent
marketprice?Ihaveanothersharedterracehousewithmybrotherthatboughtbeforethisapartment,
doIentitlediscountonstampduty?
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