Yew Huoi, How & Associates | Leading Malaysia Law Firm

Menu

MEMORANDUM OF TRANSFER – EXEMPTION – STAMP DUTY – RPGT – PERFECTION OF TRANSFER – REGISTRATION OF CHARGE

Memorandum of Transfer (“MOT”)

  • MOT is a legal document prescribed by the National Land Code 1965, which is used to effect the transfer of the ownership of the property, once the individual title / strata title is issued, from the developer to the purchaser.
  • For an MOT to be legally effective, the document must be stamped and adjudicated at the Inland Revenue Board and the stamp duty paid.

Exemption on Stamp Duty

  • The government under its recent short-term economic recovery plan (“PENJANA”) has reintroduced the Home Ownership Campaign 2020 (“HOC 2020”) which offered significant reductions to the stamp duty payable for qualified home buyers.
  • Under HOC 2020, Malaysian home buyers who sign and stamp their Sale and Purchase Agreement (“SPA”) from 1st June 2020 to 31st December 2021 may receive full stamp duty exemption on their MOTs and loan agreements depending on property value.
  • Take note: this is only applicable to residential properties that fall within the range from RM300k to RM2.5 mil.
  • Take note: stamp duty of MOT will only be exempted for the first RM1 mil of the property.
  • For the remaining, RM3 will be imposed for every RM100.
  • If you buy property within RM1 mil, you will be exempted from stamp duty for both MOT and loan agreements.

Exemption on RPGT

  • When you are selling a property, you are required to pay Real Property Gain Tax (“RPGT”) based on the gains from the disposal of the property:-
Disposal Malaysians Foreigners Companies
1st year 30% 30% 30%
2nd year 30% 30% 30%
3rd year 30% 30% 30%
4th year 20% 30% 20%
5th year 15% 30% 15%
6th year and thereafter 5% 10% 10%
  • In PENJANA plan, RPGT has been exempted for the disposal of properties. However, it must fall under the following requirements:-
  • This exemption is only applicable to residential property.
  • The transaction shall be carried out from 1st June 2020 to 31st December 2021.
  • This exemption is only limited to the disposal of three units of residential homes per individual.

Stamp Duty Exemptions for Transfers between Loved Ones

  • Transfers of ownership between family members and loved ones would come under “love and affection”
  • Love and affection transaction is subject to certain exemptions on the stamp duty.
  • This is only applicable to transfers between husband and wife, and parent and child.
  • Transfers between spouses will be exempted from stamp duty, while between parent and child, there is a 50% exemption.

 Perfection of Transfer (“POT”)

  • POT is the process of the changing of the name on the title from the developer’s name to the current owner’s name.
  • Most of the time, the property title is still under a Master Title when a person buys an under-construction house from the developer.
  • Generally, Master Title refers to the whole piece of land, which including building lots or parcel lots that haven’t divided into individual building lot or parcel lot. In other words, all properties will be put together in one big plan.
  • Therefore, it is the developer’s responsibility to subdivide the big plan into an individual share of the property and submit it to the Land Office for their approval.
  • Upon approval by the Land Office, each unit of property will now has its Individual or Strata Title and the previous Master Title will be revoked to the Land Office.
  • When an Individual Title or Strata Title has been issued at a later date, a POT process is required to complete ownership procedure from developer to the purchaser.

Perfection of Charge (“POC”)

  • If the purchaser obtains a loan to purchase the property, the purchaser shall charge the property to the bank by way of POC.
  • Charge is a common form of security registered in favour of the financial institution in exchange for the granting of a loan facility to the purchaser in financing the purchase of property.

Why do you have to appoint a conveyancing lawyer to do POT and POC?

  • To act on your behalf to communicate with developer’s solicitor as well as to transact with the various government agencies.
  • A property transaction has a complex legal procedure, a conveyancing lawyer would be able to guide, prepare and explain at every step to you
Back to Latest Legal Updates

Sorotan Terkini

LEGAL UPDATES – THE SILENT CURVE: WHY MEDICAL PREMIUMS SUDDENLY SPIKE

Medical insurance premiums do not increase gradually. They rise exponentially. For many years, costs appear manageable, giving policyholders a false sense of stability. However, once the insured reaches their mid-60s, medical charges begin to accelerate sharply, and after age 70, they often outpace the premiums by several multiples.

This happens because medical insurance is funded from a finite pool of money – an investment “bucket” – while the medical rider functions like an engine that consumes more fuel as the insured ages. When the engine grows faster than the bucket can be replenished, depletion is inevitable. The result is sudden premium hikes, demands for top-ups, or policy lapse – not due to misconduct or missed payments, but due to the structural design of the product itself.

Read More »
8 Februari ,2026 Tiada Ulasan

THE ‘COVER UNTIL 99’ MYTH – WHY INSURANCE AGENTS GET IT WRONG

Consumers must stop relying on what insurance agents say and start reading what insurance policies actually provide. ‘Medical cover until 99’ does not mean guaranteed coverage at an affordable premium. In reality, medical insurance charges rise exponentially after age 70, often making the policy mathematically unsustainable. By the time policyholders realise this, they are told to top up tens of thousands of ringgit or lose coverage altogether.

Read More »
8 Februari ,2026 Tiada Ulasan

STRATA TITLES ACT – DEVELOPER MUST ACCOUNT FOR COMMON PROPERTY COMPENSATION: HIGH COURT IMPOSES CONSTRUCTIVE TRUST

In JMB Kelana Square v Perantara Properties Sdn Bhd & Ors [2025] 12 MLJ 51, the High Court held that a developer who received compensation for land compulsorily acquired for the LRT 3 project could not retain sums attributable to common property. Although the compensation was paid entirely to the developer as registered proprietor, the Court found that part of the acquired land constituted common property, and the developer therefore held RM6.05 million on constructive trust for the Joint Management Body. The decision affirms that JMBs have proprietary standing to recover compensation for common property and that courts will intervene to prevent unjust enrichment in strata developments.

Read More »
1 Februari ,2026 Tiada Ulasan

UNFAIR DISMISSAL – MEDICAL LEAVE IS NOT MISCONDUCT: HIGH COURT UPHOLDS INDUSTRIAL COURT’S PROTECTION OF SICK EMPLOYEE

In Aerodarat Services Sdn Bhd v Lawerance Raj a/l Arrulsamy & Anor [2025] 11 MLJ 26, the High Court dismissed an employer’s judicial review and affirmed that prolonged medical leave does not, by itself, amount to misconduct justifying dismissal. The Court held that the employer failed to prove the critical element of intention not to return to work or unwillingness to perform contractual duties, despite high absenteeism caused by serious illness and surgery. The ruling reinforces that employers must distinguish between genuine illness and misconduct, and cannot rely on medical absence alone to terminate employment.

Read More »
1 Februari ,2026 Tiada Ulasan

WILL AND PROBATE – COURT OF APPEAL INVALIDATES WILL OF 97-YEAR-OLD TESTATOR: CAPACITY, SUSPICION AND UNDUE INFLUENCE PROVED

In Kong Kin Lay & Ors v Kong Kin Siong & Ors [2025] 5 MLJ 891, the Court of Appeal set aside a will executed by a 97-year-old testator, holding that there was real doubt as to testamentary capacity, compounded by serious suspicious circumstances and undue influence by certain beneficiaries. The Court emphasised that while the “golden rule” is not a rule of law, failure to obtain medical confirmation of capacity where doubt exists is a grave omission. Credibility issues with the drafting solicitor, beneficiary involvement in the will’s preparation, and suppression of evidence led the Court to declare the will invalid and order intestacy.

Read More »
1 Februari ,2026 Tiada Ulasan

NOT AN ‘AGREEMENT TO AGREE’: ENGLISH COURT OF APPEAL SAVES LONG-TERM SUPPLY CONTRACT DESPITE OPEN PRICE CLAUSE

In KSY Juice Blends UK Ltd v Citrosuco GmbH [2025] 2 Lloyd’s Rep 581, the UK Court of Appeal held that a long-term supply contract was not unenforceable merely because part of the price was stated as “open price to be fixed”. The Court implied a term that, in the absence of agreement, the price would be a reasonable or market price, noting that the product’s value could be objectively benchmarked against the market price of frozen concentrated orange juice. Emphasising that courts should preserve commercial bargains rather than destroy them, the decision confirms that section 8(2) of the Sale of Goods Act 1979 operates as a saving provision, not a bar to enforceability.

Read More »
1 Februari ,2026 Tiada Ulasan
ms_MYMY
en_USEN zh_TWZH ms_MYMY
× Hubungi Kami