Hi guys

Any info on what are the cost involve when we want to sell a property?

Many threads are discussing on cost when purchase property but no threads discussing on cost when selling off property

So far I know is only RPGT and lawyer fee. Any else?

Update as 24th July 2015:

1. Agent Commission
Normally agent charge is 2%, 2.5% or 3%
Mine was charged 3% but i managed to nego and further reduce to 2%
Note: if u can sell without agent, u no need to pay for the agent commission.

2. Legal Fees
As follows:


But since my agent is using the same lawyer for buyer and seller, the terms & condition & paperwork is repetitive.
they can do simultaneously, so legal fees are paid by the buyer.
Seller only pay the remaining portion of it. in my case, i just need to topup RM1,000 + 6% GST.
Note: actual cost will be update once i received the final quotation from lawyer.

3. Consent Fees
lawyer will charge u a consent fees if there is need to apply/transfer for consent from land office.
this cost will be added to the legal fees. luckily my property dont require consent

4. Real Property Gain Taxes
First 3 years - charged for 30% of net gain
within 4 years - charged for 20% of net gain
within 5 years - charged for 15% of net gain
more than 6 years - no RPGT
Each individual can have one RPGT exemption per lifetime.
anyone know how to apply for this? or will it be automatically waive during the selling process?

5. Property Insurance
Remember to cancel or transfer the insurance under your property, especially if its under MLTA.
Wait until the deed has transferred and you are legally no longer bound to the house before cancelling it.
Cost impact: still searching. Anyone has experience on this? what if we forgot to cancel the insurance?

This post has been edited by suadrif: Aug 20 2015, 09:28 AM

Agent fee if u using agent.

For Vendor, generally, the main charges will be as follows:-

(1) Legal fees for Sale and Purchase Agreement - if you decide to appoint your own lawyers - highly advisable to do so, otherwise, the SPA will most definitely be one sided in favour of the purchaser.
(2) RPGT - the tax itself (if applicable) and the legal fees for submission of the RPGT forms (will still need to submit forms to LHDN even if no RPGT payable);
(3) If property is still assigned/charged to the bank, you will need to pay for the legal fees and disbursements for the deed of receipt and reassignment/discharge of charge.
(4) If state authority consent is required, you will need to pay the legal fees for the application for consent as well.

There could be other charges, depending on the case at hand.

This post has been edited by jason1986: Jul 3 2015, 07:14 PM

Which one is costing more? Used the same lawyer or me appoint my own lawyer?
And for LHDN, let say I apply for RPGT exemption, do I still need to pay income tax? I really hates when my income got slashed for 25% for nothing

Manage to nego from 3% to 2%

Of course it will be cheaper if you use the same lawyer as that for the purchaser as you will not be charged legal fees for the drafting and negotiations for the SPA. However, you will be unrepresented for the sale and purchase transaction. As I have mentioned previously, your interest might not be safeguarded as the lawyer is acting for the purchaser and not you. The lawyer will be merely assisting you in relation to other matters such as for filing of RPGT, state consent etc. SPA will definitely be one sided.

RPGT is not income tax. RPGT = real property gains tax, i.e. tax on the gains you make from the disposal. Two different things. Seller is entitled elect for a once a lifetime waiver provided that the conditions are met (must not have used this waiver before, property must be residential, property has been occupied, either by the owner or tenant, CF must be issued). Will need to provide copy of CCC (previously known as CF) or telephone/water/electricity bill as proof.

Hope this clarifies.

This post has been edited by jason1986: Jul 3 2015, 07:33 PM

Jason, you look well versed in Properties transaction... Mind to ask you're an agent ? Investor? Lawyer?? Or banker??

Anyhow, when you ride on the buyer's lawyer doesnt meant the whole SnP would one sided towards purchaser. Seller still have the right to request a draft SnP from the lawyer to vet through before the signing date and make some amendments if he/she felt its too unjust... Subject to the owner is free to go through the whole SnP and digest it one by one. This way might saves you some little bucks..

This post has been edited by Tavia88: Jul 3 2015, 11:19 PM

I see
Understood little bit more now
But one thing is, after sold the property, I won't be charge for income tax?

Another thing is, my agent mentioned that deposit 2% will be hold by agency and 8% is direct to owner. Is that mean I will be charged 2% for agency fee and then later another 2% for agent commission? Isn't that too much?

Normally 2% booking fee paid will be held by the agency n balance 8% to be paid to the seller upon signing of the SPA. That 2% paid to the agency = the agents commission lahhh.

No income tax for disposal of property. If u make money from the disposal, it is = gains. Not income. Rental income will be subject to income tax. Gains subject to rpgt.

This post has been edited by jason1986: Jul 4 2015, 09:05 AM

Your statement is based on the assumption that the vendor knows what to look out for. Further there are other matters to take note if the vendor does not appoint their own lawyers. For e.g. the purchasers lawyers can play around with the timing involved and that the vendor's security documents will be held by them instead of released to them only upon certain conditions being met. They will also be holding the stakeholder monies. Not so simple. Hence my advice is still to get your own lawyers. For me, I will just factor all these costs into the selling price.

ok thats confirming something
at least i know that agent is bullshitting me for the other 2%

Depending on area, I can recommend u reliable agents. Lots of crappy bullshitting agents around.

Reliable agent is one thing
Marketable agent is another thing

Many agent come to me for selling the house but not all can bring buyer.

True. Don't get me wrong ya. I am just sharing contacts that I have if you need it. Have used this team of agents before and they were able to get things done for me.

Cheers.

Its ok I completely understood your point
Thanks for willing to share
Since u r also in selangor area, might need it in future

In the meantime I need to resolve the issue with this extra 2% with this agent

Hi Jason,

When property agent can claim the 2% commission from seller? is it After both parties has signed the spa OR After all process is done and vacant possession is passed to the buyer?

This post has been edited by propusers: Jul 10 2015, 03:41 PM

+1
jason1986 i also want to know for above statement
what if the transaction unsuccessful? do we need to pay 2%?

Standard procedure, once the SPA is stamped then they will claim the 2%.

Except with special clause in the Booking form where the seller and the agent come to mutual agreement to only claim the commission once the title name transferred to the buyer. But these type of arrangement normally most of the agent wouldnt agree. The most secure's part that i saw i when the property is from bumi to non-bumi so they agree to only claim the commission after the consent to transfer obtained.

Hope the above clarification helps.

Tavia has graciously answered your question.

yes, really depends on the agent and how much effort he is putting into selling your property. But in most cases, since you decide to go cheap on agent fee and not paying the recommended 3% fee listed by the BOVAEA, it probably won't be in the agents first interest to market your property. It is important that there are other cost such as marketing fees, petrol, calls and time used by the agents which the seller is never aware of. These hidden cost are not cheap and obviously everyone needs to cari makan
A good agent should be able to negotiate your property at a good price and never appoint an agent if they complain their asking price is too high! That's just very unprofessional and they should do their best to accomodate your requirements.

There's loads of phony agents/negotiators out there so make sure you check if he has a REN/REA tag and look up there REN/REA number to check if they're actually registered agents!