Memorandum Of Transfer Love & Affection

You bought a house, maybe years ago, and one day you wonder

– Can I Transfer My Property To My Wife?

A lot of people transfer their property to their wives or spouses because of many reasons. I can think of a few.

a. You might want to buy a new house and getting a new home loan.

For some people, they have two existing home loans. And the only things that are getting away from getting the third housing loan with 90% margin is by transferring one of the houses or home loan to your wife or spouse.

b. You might be away from the country

You might always be traveling or staying overseas for months or at times years. So, you want to transfer the property to your wife so that when times come, either you need to refinance or selling the house; it will be easy for her to handle the documentation.

c. You guys are going to divorce

It might sound negatives. But, in reality, many couples came to us for the transfer because they are divorcing.

So, before they sign the divorce paper, they would like to get the property transfer complete. The reason because the couple wants to take advantage of the stamp duty exemption. And the stamp duty exemption is only applicable if you are still spouses.

According to the law, the stamp duty exemption for Transfer Property Between Spouses are as follows:

a. Husband to Wife: 100%

b. Wife to Husband: 100%

These are the remission order for the stamp duty exemption for Transfer Property Between Spouses without any expiry date.

Stamp Duty (Exemption) (No. 10) Order 2007 (P.U. (A) 420): Between spouses.

This is another ministerial order which provides for full exemption of stamp duty chargeable on any instrument of transfer of immovable property between spouses. This order had since been in effect from 08.09.2007, superseded P.U. (A) 434 in terms of stamp duty chargeable on the instrument of transfer of property between spouses.

Here I have an example of calculation for stamp duty of Transfer Property Between Spouses.

For example, the Market Value upon Transfer is RM500,000.

A. Between Husband and Wife

Actual Stamp Duty: RM9000

Exemption Rate: 100%

Payable Stamp Duty: RM0.00

Meaning, you don’t need to pay anything for your stamp duty. The only thing you need to worry about is the lawyer fees and disbursement fees.

How much is the lawyer fee?

The lawyer fees scale is as below.

For the first RM500,000 – 1.0% (subject to a minimum fee of RM500)

For the next RM500,000 – 0.8%

For the next RM2,000,000 – 0.7%

For the next RM2,000,000 – 0.6%

For the next RM2,500,000 – 0.5%

Where the consideration or adjudicated value is in excess of RM7,500,000 — Negotiable on the excess (but shall not exceed 0.5% of such excess)

If the property market value is RM500,000, the lawyer fee is RM5000.

How much is the disbursement fee?

Disbursement fee will include the actual amount spent on search fees (Land Office, Land Registry, Insolvency Department, Companies Commission Malaysia, etc.), registration fees, travel expenses, and other disbursements paid and incurred.

The estimation of the disbursement fee will be in the ranging of RM1000-RM2000.

You might also like to read this article, Transfer of Property Between Family Members in Malaysia – Love and Affection Property Transfer and Transfer Property To Family Member.

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