Question:
If a husband and wife have a joint name for a shop that is still under the bank loan name, what will be the type of fees incurred if the wife wants to transfer the name and loan to the husband?
Answer:
Thanks for your question.
Lately, we’ve had the privilege of working with many clients who want to transfer their property to family members, spouses, or even children.
When we received your question, we figured, “Hey, it’s sharing time.”
First, let us understand your question.
From your question, we understand that you have a shop, and the shop is joint ownership with your husband, 50:50 shares.
At the same time, both of you have taken a joint loan for the shop.
Now, you want to transfer 50% shares of your ownership to your husband and remove your name from the loan.
Okay, now we understood your situation and ready to explore your options.
There are two ways to approach this.
A. By way of Sale and Purchase Agreement
You can do it by executing a new Sale and Purchase Agreement (SPA) with your husband. At the same time, your husband is applying for a new loan solely under his name.
The good thing about doing this way is it’s more straight forward. And it’s what most banks love. You show the bank the SPA; they will straight away process your case.
And when it comes to Real Property Gain Tax ( RPGT ), if there is any gain from the transaction, your husband might need to pay it. However, you can get a waiver for RPGT once in a lifetime.
Another thing to note is there will be a Seller SPA quotation and Purchaser SPA quotation to pay. The Seller SPA quotation will be an additional cost to you since there are no such fees when you do it by way of Memorandum of Transfer – the second option.
The most disadvantage of executing by way of SPA is the stamp duty. The stamp duty will be charged in full without exemption, unlike using the second option, you can get an exemption on stamp duty.
Also, since your husband is required to apply for a new shop loan, there is a new Bank loan agreement fee and Valuation Fee.
Conclusion:
The fees that incurred when do it by way of the Sale and Purchase Agreement (SPA).
a. Seller Sale And Purchase Agreement Fees
b. Purchaser Sale And Purchase Agreement Fees ( include property stamp duty)
c. Bank loan agreement fees
d. Valuation Fees
B. By way of Memorandum of Transfer (MOT)
Another way to go about it is by way of Memorandum of Transfer (MOT). MOT is our favorite way to go.
You have to execute a Memorandum of Transfer document stated selling your 50% shares to your husband. And, like by way of SPA, he needs to apply for a new shop loan too.
There is a fee charged for MOT, like SPA. But, this time, there is only one quotation to charged. Therefore, it is a saving for you.
Besides, under Love and Affection Stamp Duty Exemption, a stamp duty transfer between spouses is 100% exempted. So, another massive saving. Do take note, a property stamp duty can be costly and expensive.
Also, since your husband is required to apply for a new shop loan, there is a new Bank loan agreement fee and Valuation Fee.
When executing under MOT, you don’t need to pay any Real Property Gain Tax (RPGT). However, it is good to note this.
In the future, if your husband sells the shop. The RPGT calculation under your share will be calculated from Zero instead of the previous selling price. However, you can get a waiver for RPGT once in a lifetime.
Most banks will encourage you to do by way of SPA because it’s straightforward, and the bank policy urges them to persuade clients to do so; if not, they can’t proceed.
Only minority banks can accept by way of MOT, and a delicate law firm knows how to complete the case. We have the Team for it, the bankers and the lawyer. They can help you out.
If you’re interested, you can reach us at 012-6946746.
Conclusion:
The fees that incurred when do it by way of Memorandum of Transfer Fees (MOT).
a. Memorandum of Transfer Fees
b. Bank loan agreement fees
c. Valuation Fees
Please fill-up the form below if you desire to get any of the above quotations except for valuation fees.
And before you go, take this opportunity to check out this article – Love And Affection Transfer. I hope you enjoy it!
Suppose you can squeeze a precious little time of yours to share this article and like our Facebook page. We appreciate it so much!
See you soon!
LIKE, SHARE & FOLLOW US!
#malaysiahousingloan
Online Mortgage Consultant
Call or Whatsapp Us: 012-6946746 (Talk to David)
Request A Free Quotation From Us Today
Quotation For
-
SALE AND PURCHASE AGREEMENT MALAYSIA
-
LOAN AGREEMENT MALAYSIA
-
TRANSFER OF PROPERTY MALAYSIA
-
TRANSFER OF PROPERTY BY LOVE AND AFFECTION MALAYSIA
-
AUCTION PROPERTY MALAYSIA
-
SELLER QUOTATION FOR SUB SALE PROPERTY MALAYSIA
Leave A Comment