A guide to property transfer between parent and children in Malaysia.

As our parents’ age, they might have a lot on their minds. Perhaps one thing on their mind is, “How do I transfer property to my child ?”

They might have intended to pass down their property to the children and need help figuring out where to start.

My late father passed down his property to me when I started working years ago. 

End of last year, I lost my father to cancer.

It is so challenging mentally and physically that I lost my sister in the same year.

But, because we have done the property transfer earlier, this has helped us avoid all the legal matters and complications.

Simple steps to property transfer for your children

The process of property transfer is quite simple if the property is free from encumbrance.

Free from encumbrance, meaning the property is without a bank loan.

Just follow these steps. (Transfer property to my child)

1. You need to identify the property that you want to transfer. 
2. Who is the person receiving the property? 
3. How much percentage do you want to transfer?
4. How much is the property value of the property?
5. Then, get a quote from a law firm. Preferably someone who has experience doing it. 

       ( yes, not all law firms have the expertise)

6. Hired a lawyer to do the transfer.

7. Passed the necessary documents to the lawyer. Like SPA, a title deed, quit rent and an IC copy.

8. The lawyer will prepare the transfer agreement. This document should be signed by both you and your child.

9. You will require to settle your lawyer fees during the signing.

10. The lawyer will get the agreement stamped by the Inland Revenue Board (IRB). And the IRB will calculate the stamp duty payable on the transfer.

11. If the property transfer to your child is by way of a memorandum of transfer (MOT), not a Sale and Purchase Agreement (SPA), you can apply for a love and affection stamp duty exemption.

Under the Love and Affection stamp duty exemption, transfers between parents and children will entitle 50% exemption and between spouses will be 100% exemption.

12. The IRB will calculate the stamp duty payable on the transfer, and you will need to pay this, along with any other fees, to the Land Office.

13. The Lawyer will register the transfer at the Land Office. They will submit the stamped transfer agreement, along with the original title deed of the property and other relevant documents, to the Land Office for registration.

14. Once the transfer has been registered, the Land Office will update the title deed to reflect the transfer of ownership to your child.

15. Keep the new registered copy of the title deed safe.

Avoid this mistake!

Please remember not to laminate the title deed, as this could render it void.

The heating process during lamination could spoil any important holograms, security stamps, seals, or ink on the document itself.

How long does it take to transfer property to your children in Malaysia?

A standard case of property transfer (free encumbrances) without loan and freehold property ( without restriction) usually will take about 1.50-2 months.

Property transfer (free encumbrances) without loan and freehold property ( with restriction)or leasehold property usually will take about 3-5 months.

We do hope you enjoy reading our article.

In the next article, we will cover Property Transfer between Parents and Children with Property that still attaches to a Bank loan.

So, stay tuned for that!

We hope you enjoy this article.

Before you go, read this too.

Transfer of Property Between Family Members in Malaysia

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