Recently I made booking for house. In my booking receipt it mentioned below statement:

S&P legal fees & stamp duty borne by developer
MOC legal fees & stamp duty borne by developer
MOT legal fees & stamp duty borne by purchaser

I'm quite blur what is different between moc & mot? As nothing much i can find about these 2 things.
Is it moc is referring to bank loan fees?

What's the difference between S&P stamp duty and MOT?

MOC is the memorandum of charge ie a document executed to effect the charge of your property in favour of your financier.
MOT is the memorandum of transfer ie an instrument to effect the transfer of the title of the property to you as the owner.

Stamp dutt on S&P is just a nominal RM10/- per copy of the stamped document.
MOT is calculated on tier basis based on the property purchase price, ie 1% for the 1st RM100k, 2% for the next RM400k and 3% for RM500k onwards.

I know what MOT is. But why some websites put s&p stamp duty = MOT?

It's different. I can't answer on behalf of those websites that put so.

How about MOC? How it is calculated?

Provided that your loan facility agreement is taken as the principal instrument hence being stamped ad valorem (0.5% of loan amount) then the charge document / MOC will be the subsidiary instrument stamped at RM10/- per piece.

MOC - Memorandum of Charge, it's a document required to be perfected when the individual document of title to your property has been issued by the relevant land authority
MOT - Memorandum of Transfer, it's the document which will have your name endorsed and registered in the individual document of title to the property. this guarantees your right as the owner of the property. Vital!

Sale and Purchase Agreement stamp duty refers to the nominal stamp duty chargeable. All documents are required to be stamped in order to be admissible in court and more importantly a required documents before your bank will release any monies from your loan.

MOT stamp duty is the stamp duty payable to effect the transfer of the property to you and is calculated in the ratio provided in the stamp act. Generally, the higher the purchase price, the higher the stamp duty.

Sale and Purchase Agreement is not MOT. Sale and Purchase Agreement is the contract between the developer and you indicating the terms and conditions of the purchase. it's the legal binding document giving rise to the purchase.

Stamp duty for Memorandum of Charge is calculated based on your loan amount as well. the formula is X x 0.5%, where X is your loan amount.

Hi, I have few questions about MOT:

1. Is there any specific period to settle the MOT payment?
2. For first house buyers, is it true that there is 50% discount for the MOT stamp duty amount?
3. If no. 2 is true, how to claim/clarify the 50% discount with lawyers who had given a quotation without it?
4. For shared buyers, lets say 2 names.... if one of them already bought a house, does the discount still applicable to the other ?

Hopefully someone can give answers. Really appreciate it.

1. depending on what you mean "specific period". you are required to perfect the transfer within 12 months from the date of the developer informing you that the individual title has been issued failing which a penalty may be levied against you; you are required to make full payment of the stamp duty payable on the MOT within 1 month from the assessment notice; there is also a registration penalty payable by you if you failed to present for registration the MOT within 3 months from the date of the MOT.

2. right and wrong. to entitle to such waiver, you need to fulfill 2 criterias; 1) the property was your first residential property (you cannot co-own) or even linked as a borrower; 2) the property's purchase price must be below RM500,000.00.

3. the discount is not given by the solicitors but rather the relevant stamping office. don't pay the stamp duty to the solicitors first. pay to them only once the assessment notice is extracted.

4. technically speaking, yes. the waiver will apply to the one that is entitled to the waiver.

thank you for spending your time answering. need to understand more:

from answer for no. 1, does the penalty statement can be find in the S&P? of is it actually a general rules applied to all purchasers?

from answer for no. 2, meaning of "co-own" is cannot have two names (owners/buyers) for the property, even though the bought property is the first one for both buyers?

from answer for no. 3, assessment notice mentioned there is "cukai taksiran" right? meaning pay to solicitors after I received the assessment bill? after that, how actually the waiver will be given?

from answer for no. 4, how is that be if compared to the first criteria in answer for question no. 2?

tq.

This post has been edited by amel036yippee: Feb 25 2016, 01:37 PM

1. why "penalty" you are referring to? there are 3 penalties i mentioned in my post.

2. maybe make it simple, it does not matter in what capacity or share you are dealing in, so as long as your name appears on the Sale and Purchase Agreement/issue document of title to the Property, you will automatically be disqualified.

3. assessment notice in this sense is not to be confused with "cukai taksiran/cukai pintu". it's a specific assessment notice from LHDN. solicitors will usually forward same to their client once they have extracted same then the clients will have a period of 1 month to pay the same to the relevant stamping authority.

4. i don't understand your phrasing of your question. can you be more specific?

1. penalty for the MOT late payment - not to the land office, but to the solicitor especially.

2. what you mean here is actually if there are to names on the Sale and Purchase Agreement/issue document of title, am I right?

3. I think they haven't receive anything from LHDN up until now, except notification letter from developer about the Property title and MOT + legal fees quotation from solicitor

4. I try, it is like this:

In earlier question no. 2, i asked about the 50% waiver... your answer was there are two criteria must fulfill to eligible, where the 1st criteria is "the property was your first residential property (you cannot co-own)".

In earlier question no. 4, i specifically gave example about 2 names for one Property (lets say ABC), where to the 1st name this Property ABC is his/her second property and for the other name the Property ABC is his/her first property. then, your answer was "technically speaking, yes. the waiver will apply to the one that is entitled to the waiver."

my point of question is.... in question 4 the property is co-own, yet the waiver still can apply to either one of the buyer (first property bought)?

1. you don't pay penalties to your solicitors.

2. meaning you are not privy to any sale and purchase agreement and your name must not be endorsed on any immovable property (whether by way of gift, will etc).

3. then legally speaking, you have 12 months time from the date of the developer's letter to perfect the transfer.

4. if i may, let me cite you a scenario:-

Abu wants to apply for the waiver so Abu needs to make sure that he has not previously bought any residential properties and Abu must also ensure that he has no other immovable properties in which he has a share in it (whether it was given by his dad etc). This means Abu must have nothing to do with any immovable properties.

If Abu bought a property with Ali then Abu is not entitled to such waiver anymore and Ali may be entitled to the waiver provided that the conditions I have given in my earlier posts has been fulfilled.

This post has been edited by shaniandras2787: Feb 25 2016, 02:50 PM

I think I want to stop here for now. You've done a lot of answering, thank you very much and I need time to refresh my head also.... have to clear few things a bit to transfer those info.

Conclusion:

No. 1 & 2 - still blurry~
No. 3 & 4 - understood.

Thanks a lot.

I hope its ok to use this thread for a query...

If I buy a leasehold subsale which is under Master title, I would have to pay how many stamp duties? S&P and DoA?

Once the properly is ready for strata, do I need to pay another round of tiered stamp duty for MOT?

Whether a property is a leasehold or freehold has no bearing on the stamp duty payable on the Sale and Purchase Agreement or the Deed of Assignment. It may affect however the legal fees and registration fees.

If you are purchasing a property under master title through sub-sale transaction then upon issuance of the individual document of title to the Property, you are only required to pay a nominal fee of RM10.00 only. Your solicitors will know how to obtain the stamped original Deed of Assignment from your financier for endorsement of the then Memorandum of Transfer.

Hi shaniandras2787...Thank you very much for the reply....I guess I should have been a lil more clearer...I was charged the stamp duty on DoA which came up to a few thousands so I was wondering if I have to pay a few more thousand later on once the strata title is issued....If I understand your reply correctly, this would mean I only need to pay the RM10 and some lawyer fees for me to get my strata in the future...Thats a huge burden off my back

Thanks!

You are right.

If you are purchasing the property through a subsale transaction, you are required to pay the full stamp duty on the Deed of Assignment (by way of Transfer) based on the purchase price. The stamped ORIGINAL Deed of Assignment will be forwarded to your financier for safekeeping (if you are obtaining a loan) and when the individual document of title has been issued, your solicitors will request from your financier the same for endorsement so that the Memorandum of Transfer will only be stamped RM10.00 (nominal fee to give effect of admissibility in court).

BUT if you are purchasing the property by cash then the stamped ORIGINAL Deed of Assignment will be given to you then please be reminded to keep it somewhere safe and a place in which you will not forget otherwise you are going to have a bad time later on.