Property Transaction Costs In Malaysia(Simplified):

Posted on 3:50 PM | By Smart Wealth Advisory | In

1) Stamp Duty == 1% - 3% (By Buyer)
2) Lawyer/Solicitor's Fees == 0.4% - 1% (By Buyer)
3) Other Fees == MYR180 (US$49) (By Buyer)
4) Real Estate Agent's Fees == 2% - 2.75% (By Buyer or Seller or Both)

Explaination as follow:

1) Stamp Duty (Value Of Property in MYR -- Rate)
First 100,000 -- 1%
Next 400,000 -- 2%
Remainder (Over 500,000) -- 3%

2) Lawyer/Solicitor's Fee (Value Of Property in MYR -- Rate)
First 150,000 -- 1%
Next 850,000 -- 0.7%
Next 2,000,000 -- 0.6%
Next 2,000,000 -- 0.5%
Next 2,000,000 -- 0.4%

* where the consideration or adjudicated value is in excess of MYR7,500,000 then it's negotiable but shall not exceed 0.4% of such excess

3) Other Fees (MYR)
Stamping Fee (per document) -- MYR10
Adjudication Fee -- MYR10
Title Search Fee -- MYR60
Registration Fee -- MYR100

4) Real Estate Agent's Fee
Agent's Fees are regulated by the Board of Valuers, Appraisers and Estate Agents Malaysia (LLPEH). Commission is paid either by buyer or seller, subject to a maximum discount of 30% but a minimum fee of MYR1,000 per case. The scale is not applicable to sale of foreign properties in Malaysia.

Agent's Fee (Value Of Property in MYR -- Rate)
First 500,000 -- 2.75%
Remainder -- 2%


Property Buying Procedure(Simplified):

The first step to purchasing property in Malaysia is to hire a real estate lawyer to assist in the transaction. Once property is selected, a Letter of Offer/Acceptance is signed, and a 3% deposit is expected from the buyer.

Within 14 days, the Sale and Purchase Agreement is signed. The buyer must pay another 7% deposit. From the date of the signing, the buyer has a maximum of three months to accomplish full payment.

The Sale and Purchase Agreement must be stamped at the Stamp Office. After the examination on the property of the valuation department, Stamp Duty is paid to the Stamp Office. The transfer must be registered at the Land Office Registry.

Be cautious when buying new property in unfinished condominium projects. Buyers may not be fully protected against default, an issue vigorously raised by the Malaysian House Buyers’ Association, which has pointed to flaws in The Housing Development (Control & Licensing) Act 2002, and the Strata Titles Act. Those buying unfinished property from developers should ensure that the developer has a valid Developer’s License and a valid Sales & Advertising permit.

Disclaimer: This article is written to give you a basic idea of how property buying cost and procedure in Malaysia works in a nutshell, always consult a professional real estate agent should you have any doubt or questions.


Source: http://www.globalpropertyguide.com/Asia/Malaysia/Buying-Guide

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