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| Standad procedures for buying property in Malaysia |
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| Step 1 |
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Purchaser pays an earnest deposit of 2% of the PURCHASE PRICE upon signing of the letter of offer or acceptance. |
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| Step 2 |
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| The Sale and Purchase Agreement (SPA) to be drawn up by the solicitor and executed by both parties within 14 days from the date of the letter of offer. Upon signing of SPA, pays 8 % Purchase Price being the balance of 10% of the sale price. (The purchaser then proceed to apply for the bank financing, if required). |
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| Step 3 |
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| Pay 90% of the remaining PURCHASE PRICE within the next 3 months from the signing date of the SALE and Purchase agreement. An extension of 30 days is allowed, subject to an interest of 6% per annum on the balance sum. |
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| Step 4 |
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| Take possession of property upon full payment. |
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| SALE & PURCHASE AGREEMENT (SPA) GUIDELINE |
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| 1) Legal Fees |
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| Preparation of Sale & Purchase Agreement, the transfer of the property and attending to stamping and registration. The first Schedule of the Solicitors Remuneration Order 1991 sets out the fees based on the purchase price of the property as follows : |
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1.5% on the first RM150,000 |
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0.75% on the next RM4,900,000 |
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0.25% on the remainder |
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| 2) Stamp Duty on transfer of title |
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| All transfer of property is subject to Government Stamp Duty. Rate Of Stamp Duty is based on the value of property. |
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1% on the first RM100,000 |
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2% on the next RM400,000 |
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3% on the next RM1,500,000 |
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4% on the remainder |
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| 3) Loan Agreement |
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| Preparation of the Loan Agreement of the property and attending to stamping and registration. |
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1% of the purchase price on the first RM100,000 |
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0.5% on the next RM4,900,000 |
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0.25% on the next RM4,901,000 and above |
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| 4) Other Disbursement |
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| Stamping of loan documents (based on loan amount). See example below. |
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| Loan Amount (RM) |
50,000 |
100,000 |
150,000 |
200,000 |
250,000 |
300,000 |
| Gov’t Stamp Duty (RM) |
250 |
500 |
750 |
1000 |
1250 |
1500 |
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| 5) Other Miscellaneous Disbursement |
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| Approximately RM300 |
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| The schedule for legal fees may varied, thus it is advisable to consult your lawyers for the present calculation of the legal fees. For cash purchaser, Item 3 & 4 not applicable. |
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| Disclaimer The information provided are for information only and does not constitute a basis for any offer or contract of sale. No part of this document may be construed as a statement or representation of fact based on which contract is created. Interested parties are advised to carry out their own independent investigation. |
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