Transfer property to family members in Malaysia can be a complex process, but with the right knowledge and preparation, it can be streamlined effectively. This article provides a detailed guide to help you understand the procedures, requirements, and steps involved in transferring property to family members in Malaysia.

Understanding Property Transfer Types

There are different types of property transfers depending on the relationship between the parties involved:

1.Parents to Children

 Nature of Transfer: This type of transfer can be done as a gift, also known as a transfer by love and affection. It typically involves no monetary consideration.

 Advantages: Such transfers are 100% exempt from stamp duty for the first RM1 million of the property’s value. For the balance amounts exceeding RM1 million, a 50% exemption on stamp duty is applied, making these transfers financially advantageous.

2. Between Siblings

 Nature of Transfer: This type of transfer usually involves monetary consideration and is not exempt from stamp duties.

 Challenges: The financial implications can be significant due to the stamp duty payable.

3. Husband and Wife

Nature of Transfer: Transfers between spouses can also be done as a gift and are generally straightforward.

Advantages: These transfers are typically 100% exempt from stamp duty, making them highly cost-effective.

4. Grandparents to Grandchildren

Nature of Transfer: This can be done as a gift, similar to transfers between parents and children.

Advantages: Such transfers are 100% exempt from stamp duty for the first RM1 million of the property’s value. For the balance amounts exceeding RM1 million, a 50% exemption on stamp duty is applied, making these transfers financially advantageous.

Stamp Duty Exemptions and Rates

Stamp duty is a tax paid on documents and is a crucial aspect of property transfers. Understanding the exemptions and rates can help you plan better:

1. Exemptions

Up to 100% Exemption: Available for transfers between spouses, parent to children and grandparent to grandchildren. This exemption helps reduce the financial burden on family members looking to transfer property between themselves.

50% Exemption: Available for transfers between parents and children. This partial exemption makes it more affordable for parents to transfer property to their offspring.

2. Stamp Duty Rates as follows:

   1% for the first RM100,000 of the property’s value.

   2% for the value between RM100,001 to RM500,000.

   3% for the value between RM500,001 to RM1,000,000.

   4% for amounts exceeding RM1,000,000.

Example: Stamp Duty Exemption for Transfer Property to Family Members 

Let’s consider a scenario where a mother transfers a property valued at RM2 million to her son. Here’s how the stamp duty exemptions would apply:

1.First RM1 Million:

100% exemption on stamp duty.

No stamp duty is payable for the first RM1 million.

2.Remaining RM1 Million:

Standard stamp duty rate for amounts over RM1 million: 4%.

Stamp duty without exemption: 4% of RM1 million = RM40,000.

After 50% exemption: RM40,000 x 50% = RM20,000.

Therefore, the total stamp duty payable would be RM20,000, making the transfer financially advantageous.

Step-by-Step Procedure for Property Transfer

Here is a detailed breakdown of the property transfer process:

1. Preparation of Documents

Form 14A: Also known as the Memorandum of Transfer (MOT), this document is essential for the transfer of property under the National Land Code.

 Supporting Documents: These may include identity cards, proof of relationship, and any existing agreements related to the property.

2. Adjudication of Form 14A

 This involves submitting Form 14A to the Stamp Office for adjudication. The Stamp Office assesses the document to determine the applicable stamp duty.

Documents Required: Along with Form 14A, you will need to submit a copy of the Sale and Purchase Agreement (if applicable), the previous title deed, and the identity documents of both parties.

3. Stamp Duty Payment

After adjudication, the Stamp Office will issue a notice specifying the amount of stamp duty payable.Payment must be made within the stipulated time to avoid penalties.

4. Submission to Land Office

Once the stamp duty is paid, the next step is to submit the stamped Form 14A to the Land Office.

Documents Required: Besides the stamped Form 14A, you will need the original title deed and other supporting documents.

5. Registration of Transfer

The Land Office will process the documents and update the title deed to reflect the new owner’s name.

This step finalizes the transfer, and a new title deed will be issued in the name of the family member receiving the property.

Special Considerations for Properties without Individual Titles

For properties that do not have individual titles, such as strata properties or properties under master titles, the transfer process involves additional steps:

1. Deed of Assignment

Instead of Form 14A, a Deed of Assignment is used to transfer ownership.This document must be prepared by a lawyer and signed by both parties.

2. Notification to Developer

If the property is still under the developer’s name, you must notify the developer of the transfer.The developer may charge an administrative fee for updating their records.

3. Strata Titles

 For strata properties, once the strata title is issued, the transfer must be registered with the relevant authority to update the ownership records.

Why Engage Professional Services?

Property transfer involves various legal and procedural steps that can be challenging to navigate without professional assistance. Engaging our services can provide several benefits:

1.Expert Guidance: We offer expert advice and guidance through the transfer process, ensuring compliance with all legal requirements. For example, if you are unsure about the specific process to follow, our associate lawyer can provide the necessary information and support to ensure everything is done correctly.

2.Document Preparation: The law firm we recommend will handle the preparation and submission of all necessary documents, saving you time and effort.

3.Stamp Duty Calculation: The respective lawyer will assist in calculating the applicable stamp duty and ensure timely payment to avoid penalties.

4.Smooth Process: With our professional assistance, you can avoid common pitfalls and ensure a smooth and efficient transfer process.

If you are considering transferring property to a family member and need professional assistance, contact us today. 

Our experienced team is here to help you navigate the complexities of property transfer and ensure a successful outcome. Visit our website or reach out to us for more information and personalized support.

You can contact us here.

Whatsapp:   https://wa.me/+60126946746

Before you go, read this article:

How do I transfer property to my child in Malaysia?

LIKE, SHARE & FOLLOW US!

#malaysiahousingloan

Online Mortgage Consultant

Call or Whatsapp Us: 012-6946746 (Talk to David)

Subscribe Our Youtube Channel

Follow us on Facebook

Request A Free Quotation Now!

• 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

No worries, we will get back to you soon!

FILL UP THE FORM

***( For This Moment, The Quotation Services Are Available For Property in Kuala Lumpur , Putrajaya , Cyberjaya , Selangor , Johor , Penang, Kedah , Melaka , Negeri Sembilan , Pahang & Perak only)