I WISH TO TRANSFER THE HOUSE OWNERSHIP TO MY FATHER
Question of the day.
Hi, Let say I own a condo of 500K for three years, and it is still under loan repayment of 22 years.
If I wish to transfer the ownership to my father, what are the fees, requirements, and other things I need to be aware of?
Hi, thanks for the question. So, I’ll straight answer your Q.
My answer will be based on the below assumption.
1. Both of you are Malaysian.
2. The property is under your name 100%.
3. The property is still under a bank loan.
4. The property is located in Selangor.
5. The property current market value is RM500,000
You can transfer the property to your father as long as your father is willing to take a new loan under his name or fully settle it. And you can do by way of Memorandum of transfer (for individual title property ) or Deed Of Gift (for master title property) by way of love and affection where entitles you to a 50% stamp duty exemption.
The cost of MOT legal fees is about RM12,000-12,600 (estimate), that’s included legal fees, disbursement fees, and stamp duty ( after deduction of 50% stamp duty).
The stamp duty is with an assumption the property market value is RM500,000. If the value is higher, you might need to pay a higher fee. And there are another cost – loan agreement and valuation cost.
The loan agreement and valuation fees are the cost when your father gets a new home loan. It costs about 3% of the loan amount. And if your father doesn’t need a home loan and is going to settle the loan entirely, then this loan agreement and valuation cost are not relevant.
A word to the wise, you want to avoid doing by way of Sale and Purchase Agreement (SPA). The reason behind this is the cost of stamp duty is higher as you’ll not entitle to a 50% stamp duty exemption.
So, I hope this helps to clarify any doubt you have. And if you need any further assistance for a property transfer, getting a bank loan, or engaging an experienced lawyer, you can reach us here or call us on 012-6946746 and talk to Mr. David.
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Hi, I'm Melissa. The co-founder of the website, cum the editor. I want to thank you for checking out our article. If you're looking to buy a new house, refinancing, applying for a home loan or looking to transfer your property, you are at the right place. We can help you. We have more than 15 years of experience in the industry. So, why not let the expert like us handle it for you? Or at least talk to us first. You can reach our consultant, Mr. David, at +6012-6946746. Hope to hear from you soon.