Malaysia: Purchase Process

Below is the standard purchase process in Malaysia, and issues that may affect that purchase:

    * Once you have selected your property, a 'Letter of Offer and Acceptance' is signed and a 3% deposit payment is normally expected from the purchaser.
    * Within 14 days, the buyer must pay a further 7%.
    * From the date of the signing, the buyer normally has a maximum of three months to complete the sale and make full payment.
    * Upon signature, the Sale and Purchase Agreement must be stamped at the Stamp Office. After examination of the property by the valuation department, Stamp Duty must be paid to the Stamp Office. The Sale and Purchase Agreement is then sent to the land registry along with the Memorandum of Transfer form 14A to transfer the title deeds into your name.

Costs of a standard property purchase in Malaysia include the following:

    * The stamp duty payable for transfer instruments for real property is 1% to 3% of the market value of the property.
    * If a buyer uses an estate agent to help them find property for sale in Malaysia they may be liable to pay agency fees of up to 3% of the property's underlying purchase price.
    * A property tax called 'assessment rates' is levied on the gross annual value of property, and is payable to the city or town council. 'Quit rent' is a form of land tax, and a nominal amount is payable to the state land office.
    * Lawyer/solicitor fees are 1-3%.
    * A further measure being taken by the government is the abolition of capital gains tax on property, from April 1st 2007.

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