Perfection of transfer (POT) and Perfection of charge (POC) 2024
1.You have to do a Perfection of transfer (POT) and Perfection of charge (POC) when the strata or individual title is issued.
2. Previously, If you bought a master title property from a developer or an owner, you need to do a POT and POC after a few years when the title is issued.
3. If you don’t have a bank loan, you don’t need to do a POC.
4. For POT and POC transactions, you can use the previous SPA and Loan lawyer, or you can appoint a new lawyer to do it.
5. Normally, the lawyer fees cost should be cheaper when using the existing SPA and loan lawyer. However, sometimes they will overcharge. Do your homework, survey around for a reasonable price.
6. If you are selling the property or decided to transfer the property to someone else, you can write in and ask the developer for a direct transfer to your new buyer. This will save some cost and time for you.
7. You will only need to pay stamp duty one time. If you have paid during the signing of SPA, then you don’t need to pay the stamp duty again. The same goes if you haven’t pay the stamp duty during SPA, then you have to pay the stamp duty during POT and POC.
8. If you are selling the property and the developer agreed with the direct transfer, you don’t need to pay for the stamp duty. The stamp duty will be payable by the new buyer. Meaning, you can save some stamp duty cost.
9. If the property is more than RM1mio, you are subject to a new scale stamp duty.
For the first RM100,000 is 1%
RM100,0001 to RM500,000 is 2%
RM500,001 to RM1,000,000 is 3%
RM1,000,001 onwards is 4%
10. For stamp duty exemption, you should refer to the year you purchase the property and the stamp duty exemption ruling of that year.
For instance, if you bought the property in the year 2016. Then you should check on the stamp duty exemption ruling for the year 2016.
Bonus tip:
Stamp duty is calculated based on the SPA price and not the current market value.
For instance, if you bought the property in the year 2016 and the price is RM500,000.
In 2023, you need to do the POT & POC, and the property’s market value is RM700,000.
So, the stamp duty will be calculated based on RM500,000, NOT RM700,000.
Okay, that’s a few tips about the perfection of transfer and perfection of charge.
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