SPA, loan documents, stamp duty, legal fees, and MOT — every step from offer to getting your keys.
Stamp duty is payable on the Memorandum of Transfer (MOT) and separately on the loan agreement.
| Property Value | Rate | Amount |
|---|---|---|
| First RM100,000 | 1% | RM1,000 |
| RM100,001 – RM500,000 | 2% | RM8,000 |
| RM500,001 – RM1,000,000 | 3% | RM15,000 |
| Above RM1,000,000 | 4% | — |
Example: A RM600,000 property = RM1,000 + RM8,000 + RM3,000 = RM12,000 stamp duty on MOT
| Item | Rate |
|---|---|
| Loan agreement (hire purchase) | 0.5% of loan amount |
| SPA stamp duty (fixed) | RM10 |
| Purchase Price | Legal Fee Rate |
|---|---|
| First RM500,000 | ~1.25% |
| RM500,001 – RM1,000,000 | ~1.0% |
| Above RM1,000,000 | ~0.8% |
Lawyers may offer up to 25% discount. Add RM500–1,000 for disbursements (land search, registration fees, photocopies, etc.).
| Delay | Penalty |
|---|---|
| Stamp SPA within 30 days | No penalty |
| 31 days – 3 months late | RM50 or 10% of unpaid duty (whichever higher) |
| More than 3 months late | RM100 or 20% of unpaid duty (whichever higher) |
Yes. A licensed Malaysian solicitor must prepare and execute the SPA and the Memorandum of Transfer (MOT). Both buyer and seller typically appoint separate lawyers. In practice, the buyer usually pays both sets of legal fees. You cannot DIY a property purchase in Malaysia.
Most banks offer up to 90% margin of financing, so the minimum down payment is 10% of the purchase price. For your third property onwards, the maximum margin drops to 70% (30% down payment required). First-time buyers with income below RM5,000/month may qualify for special government schemes (PR1MA, SPNB) with lower down payment requirements.
Yes — EPF Account 2 (Akaun Sejahtera) can be withdrawn for property purchase, either to reduce the loan principal or as down payment. You can withdraw the difference between the purchase price and 90% of the loan (i.e., funds to cover the 10% down payment). Apply online at the EPF member portal after your loan is approved. Processing takes 2–3 weeks.
The Sale and Purchase Agreement is the binding contract between buyer and seller that governs the entire transaction. It specifies the purchase price, payment timeline, property description, and what happens if either party defaults. For developer projects, the SPA is a standardised Housing Development Act (HDA) contract with regulated terms. For sub-sale (secondary market) properties, terms are more negotiable. Once signed and stamped, neither party can back out without penalty.
The MOT (Memorandum of Transfer), also called Borang 14A under the National Land Code, is the document that officially transfers ownership of the property from seller to buyer at the Land Office. It's stamped by LHDN (stamp duty is paid on it) and registered by the Land Office — after which the title shows your name. For new developer projects without an individual title yet, you receive a Deed of Assignment (DOA) instead, and the MOT only happens years later when the title is issued.
Yes, with restrictions. Foreigners can generally buy properties priced above RM1,000,000, and the threshold varies by state (e.g., Selangor: RM2,000,000, Penang: RM1,000,000–3,000,000 depending on location). Foreigners cannot buy: Malay Reserved land, units in the Bumiputera quota, or low/medium-cost properties. Additional approval from the state Economic Planning Unit (EPU) may be required for large transactions. MM2H visa holders have some additional allowances.
RPGT is a tax on profits when you sell property. Rates depend on how long you've held the property: within 3 years = 30%, years 4-5 = 20%, year 6+ = 0% for Malaysian citizens and permanent residents (0% exemption since Budget 2019 for gains made after the 5th year). Foreign sellers pay a flat 10% regardless of holding period. Each individual gets one RPGT exemption in their lifetime (on gains from one residential property). Estate transfers between spouses and to direct heirs are exempt.
Freehold means you own the land permanently. Leasehold means you hold a lease (typically 99 years) from the State. Once the lease expires, ownership reverts to the State (though renewals are usually possible). Banks are generally less willing to finance properties with fewer than 30 years remaining on the lease. Freehold properties command a premium in Malaysia, but many quality condos and townships are leasehold. Check the title status — it's not always obvious from developer marketing.