Many of the frequently asked topics are stamp duty on property transfer between family members. So, we hear you, and today we’re going to do some revision on the subject.

Mostly, people are concern about the property stamp duty and the cost of doing property transfer.

In Malaysia, we are allowed to transfer our property to anyone we like: family members, friends, or anyone.

There are two ways to do it.

a. By way of Sale and Purchase Agreement.

You are required to execute a Sale and Purchase Agreement. It is similar, like buying a second-hand house.

Let’s look at the Pros and Cons.


a. If you need a bank loan for financing, most banks will accept this.


a. There is a higher cost involved.

b. You have to pay stamp duty in full even though your parent is selling to you.

c. There will be two lawyer quotations. One for Seller ( the existing owner) and one for Buyer ( the recipient of the house).

d. If there is a profit gain, the Real Property Gain Tax will be imposed on Seller.

b. By way of Memorandum of Transfer

You’re only required to fill up Form 14A, which is a property transfer form without the Sale and Purchase Agreement.


a. The cost is cheaper than by way of the Sale and Purchase Agreement.

b. There is no Seller quote. Only one Memorandum of Transfer quote.

c. There is no Real Property Gain Tax.

d. You can get a stamp duty exemption if your parents or spouse transfers the property to you. Transfer between spouse is exempted from paying stamp duty while between parents and children is 50% exemption.


a. Many banks refuse to provide financing for transfer by way of a memorandum of transfer. Basically, you have fewer choices of banks to choose from.

b. Based on the Real Property Gain Tax, the property value consider as Zero. It’s a bad thing. If somewhere in the future you need to sell the property, let say for RM500k. The Inland Revenue will consider RM500k as profit gain. That’s mean you have to pay a hell lot of money!

However, you can get a waiver for your first Real Property gain Tax.

Recently, we have provided consultation to a client. Whenever we have a transfer case, I would like to draw a diagram like this as it provides us with clarity.

So, today I want to share this story with you.

The property is owned initially by three parties – Father, mom, and son.

The property value is estimated at RM1.20mio.

So each will have 1/3 shares of the properties.

And 1/3 shares, in this case, is about RM400,000

So now, the parents who are the father and mom

want to transfer the property to son and daughter in law – the son’s wife.

We have suggested doing like this.

The father’s 1/3 shares to be transferred to the daughter in law; therefore, the stamp duty will be RM7000, from the value of RM400,000.

So, how we get this?


The 1st RM100k of stamp duty is RM1000

And the balance, RM300,000 x (multiply) 2% = RM6000

So, the total stamp duty is RM7000

Now, the mom part will be divided equally between, the son and daughter in law.

The end goal is to make sure the son and daughter-in-law hold 50% shares of the property.

So far, you guys, okay?

Let me know by commenting below.



By the way, we have made a video for this topic. You can also check it out here.

Okay, let’s continue.

Mom owned 1/3 shares, the property value RM400k.

From RM400k, she will transfer RM200k to daughter in law

and another RM200k to son.

The actual stamp duty for the RM200k value is RM3000.

So, how I get this?

It’s actually the same formula as earlier.

The 1st RM100k of stamp duty is RM1000

And the balance, RM100,000 x(multiply) 2% = RM2000

So, the total stamp duty is RM3000

The daughter in law will pay RM3000 stamp duty.

But the son will get stamp duty exemption and only pay half,

which is RM1500.

Because of the transfer between parent to children or

children to parent will entitle a 50% stamp duty exemption.

By the end of the day, the stamp duty that needs to be pay will be as follow.

Daughter in law paying RM7000+RM3000= RM10,000

Son is paying = RM1500.

Earlier, son owned 1/3 of shares at RM400k value and getting another RM200k from mom. Therefore, now he owns 50% shares of the property.

For daughter in law, she gets 1/3 shares at RM400k from the father in law and RM200k from the mom in law. Hence, now she owns 50% shares of the property.

After the whole process completed, The son and daughter in law will own equally 50% shares of the property.

If you guys need a quotation on Property transfer and cost of doing it, you can request your quote here.

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Okay, that is my sharing for today. If you want to check out another article about property transfer, you can check out this article – MEMORANDUM OF TRANSFER MALAYSIA

And If you guys think this is valuable, then let me know in the comment below. Maybe I would do more of this type of video and article.

So, I hope you enjoy this article about property transfer between family members.

If you have any questions about property transfer or related to a home loan, feel free to reach out to us at 012-6946746. You can talk to Mr. David, our friendly consultant.




Melissa Lee

Online Mortgage Consultant

Call or Whatsapp Us: 012-6946746 ( talk to Mr. David)

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