Property in Malaysia for sale and rent | Buy, Rent and sell real estate and homes

Who's responsible in paying the Government levies during registration process of sold properties, is it the buyer, the seller or would it be equally shared by both parties?

For sale & purchase of property transaction, all stamp duties, adjudication fees of assessment and 5% government service tax on the legal fees ( excluding disbursements ie. the two items stated above ) will usually be required to be settled from the beginning to the completion stage of the entire sale & purchase transaction.

As for registration fees, there is a scale fees applicable to both private and public sale ( by court order or public auction ) ie.

for property value scale fees charge

does not exceed RM50,000 RM50
RM50,001 to RM200,000 RM100
RM200,001 to RM500,000 RM300
RM500,001 to RM1,000,000 RM400
exceeds RM1,000,000 RM500

This is statutory law that is a State legislation. The above scale fees is according to Selangor
legislation.

Hope this answers your query.

our properties are in JB, do you have any idea whether the buyer or seller should pay the registration fees in the MBJB?

also, who should pay the Developer for acquiring the Deeds of Consent/Assignment, is it the buyer or the seller?

Hi...

1. If the property is under strata title, you should check whether the Strata title is out or not.

2. If it is out, then you need to check whether the MOT is being done by the seller.

3. If not, then the owner have to proceed with the MOT first before selling the property to you. This will take about 2 months and the owner have to pay.

4. Some developer allows direct transfer, where the property can be transfer direct to you. This is faster but the MOT payment will have to be paid by you.

5. If the Strata title is not out, then you will have to get the consent/Deed Of Assignment from the developer. You have to pay a minimal amount for it.

6. Both have to pay to MPJB if a MOT is needed. The seller have to pay, when the property is register to his name. You have to pay when the property is register to your name.

Hope this help.

Thank you.

Regards,
Mdm Koo

mdm koo, what is a MOT? thanks

Differ on the point of Deed of Assignment from developer at paragraph 5.

For property without title, two deeds of assignment will be used.
First,the deed of assignment from the vendor to the purchaser.
Secondly, the deed of assignment from the purchaser to the purchaser's financier together with a registrable power of attorney before the High Court.

The initial purchaser only have a stamped, signed and dated Sale & Purchase Agreement with the developer and proprietor (can be a different named party other than the developer).

The original Sale & Purchase Agreement will be retained by the vendor's financier to process the loan approval and also to support the charge documentation towards rights, title and interest over the said property. The vendor will have to sign a Deed of Assignment with the developer pending issuance of the individual title/strata title. The original stamped and adjudicated Deed of Assignment will be retained by the vendor's financier. As far as bank charge is concerned, no charge can be registered without the title. This explains why the original Sale & Purchase Agreement and the Deed of Assignment is retained as a security with the bank.

If the vendor decides to embark on a sub-sale transaction with the present purchaser, then a sub-sale agreement will have to be prepared. In a non title matter, the original Deed of Assignment retained by the vendor's financier will be kept with the vendor's financier until full redemption and revocation of the power of attorney on the part of the purchaser's financier within the usual 3 + 1 months duration according to the sub-sale agreement.

Again, stamping and adjudication fees will have to be settled by the purchaser towards the present Deed of Assignment between the vendor and the purchaser, as explained in the beginning. The vendor will not have to bear any cost on the adjudication fees again towards the present Deed of Assignment between the vendor and the purchaser since the adjudication fees on the vendor's purchase from the developer is already settled initially from the developer. At present, there is a Notice of Assignment from the developer in replacement of the consent from the developer towards sub-sale at a fee of RM50 applied under s.22D of the Housing Development Act. Actually, it makes little difference, only that the cost is more consumer friendly and reasonable and also this makes real estate less dicatated by the developer.

As for the point on direct transfer from the developer, actually, this is not up to the developer to choose whether this is possible or not. The Notice of Assignment is not a 'licence' to conduct direct transfer from the land office, if one may say so. The National Land Code 1965 applies and therefore, only when title is issued by way of notification from the land office or land registry where applicable, will the requirement of transfer apply.

Therefore paragraph 4 may be differed on this point here.

In summary, when the title is issued, the vendor being the initial purchaser with the developer should receive a notification of issuance of title and bear the cost of transfer of individual/strata title from the developer or the named proprietor.

As for the sub-sale transaction, the sub-sale purchaser would have to bear the registration of transfer fees from the vendor to the purchaser according to the sub-sale agreement.

Since the developer is not privy to the sub-sale agreement between the vendor and purchaser, this also explains why no direct transfer in such way can occur.

Meanwhile, all cukai taksiran should be settled with the MPJB.

An additional issue is when title is delayed, there may be an accumulation on the cukai tanah ( which is pending until issuance of title ). Actually, the developer should bear this accumulated cukai tanah since obtaining title free from encumbrances would include a good title and good title is issued upon clearance of unsettled cukai tanah pending issuance of title.

Hence, the developer should clear this with the land office at JB having the jurusdiction of that locality.