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.

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.

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. 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

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.

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.

You are most welcome.

Yes. You need to pay the solicitors to prepare the Memorandum of Transfer form (Form 14A) during the perfection of transfer.

The legal fees is capped at 25% of your total legal fees payable (based on your purchase price) which is excluding the disbursements etc.

Search for the provision under the schedules attached to the Solicitors Remuneration Order (SRO).

Yes, you need to go back to the same firm of solicitors who attended to your Sale and Purchase Agreement to be entitled to this rate. If you elect another firm of solicitors then the legal fees will be at 50%.

1. How much is the legal fees for SPA & Stamp Duty? Payable when?
- the legal fees ONLY costs RM8,050.00, please take note that this is excluding caveat forms and disbursements.
- stamp duty for the Sale and Purchase Agreement is only RM10.00 per copy.

2. How much is the MOT stamp duty fees? Payable when?
- stamp duty itself will costs RM27,000.00

3. Any other SPA related charges or stamp duty not mentioned above?
- depending on the firms, disbursement charges varies but shouldn't be more than RM1,000.00 with GST.

4. How much is the legal fees for Loan Agreement & stamp duty? Payable when?
- legal fees ONLY costs RM7,310.00 (vary depending on the type of loan and documents involved)
- stamp duty itself will costs RM4,900.00
- usually payable upon execution of the loan agreements but can be dragged until before your loan solicitors send their advise for the disbursement of the loan
-you may want to take note of the differential sum payable too.

5. Any other Loan Agreement charges not mentioned above?
- you need to verify this with the solicitors because every firm is different in respect of their billings.

Basically, I am trying to work out the total purchase cost (in addition to the 10% down payment) and to help my dad plan his cashflow (as we are selling some smaller props to raise money for this major purchase, hence cash flow timing is important). We are an average family where every cent counts, hope you can help me.

- my word of advise, if your dad can only afford to buy a new property by selling off other properties and by selling these properties, the timing must be right then your dad is not in the position to invest in a new property with such high value especially when you mentioned "every cent counts" in your family

- if at all there is any delay in between these transactions (which will definitely occur), your dad could easily be stuck in between with nothing but unsubstantiated financial obligations.

- "flipping properties" aren't meant for people with commitment.

This post has been edited by shaniandras2787: Jun 7 2016, 06:18 PM

Yes, the bank is correct in advising that the stamp duty payable by Siti on the Memorandum of Transfer is entitled to 50% waiver.

For the stamp duty payable on the principal loan agreement however, it will only be 25% of the total stamp duty payable since only Siti's half share will be entitled for the waiver and not Ali's.

I do not know where the lawyer got the equation of 40%.

Are you purchasing a property directly from the developer or through a sub-sale transaction?

if that's the case then your solicitors who will be attending to your perfection later on will need to submit the stamp duty remission during the adjudication of the Memorandum of Transfer.

to simplify things, the full stamp duty payable for the Memorandum of Transfer and the principal Facilities Agreement will be halved.

True. The individual document of title will be issued simultaneously at the time you take vacant possession of the Property. This is in line with the new Strata Management Act.

It's not strange that your solicitor is asking you to pay in full because they are afraid to request the additional sum from you in the event the remission is not granted because every client is superbly sensitive when requested additional payments from them so i understand why your solicitor is do that.

However, I don't think so the reason given by your solicitor is the accurate one. The stamp duty remission statutory declaration (application) is submitted simultaneously with the adjudication of the principal Facilities Agreement which means, during payment, the solicitor will already know how much is due and payable. There is no need to pay the full stamp duty to the stamping authority and then request for the rebate and wait for their reversion.

If what you are conferring here about the percentage is true then your solicitor is wrong in the calculation.

The stamp duty payable on the Memorandum of Transfer and Facilities Agreement is separate and the remission is enforceable in personam. If there is only 1 borrower and that borrower is entitled to apply for the remission then it will be 50% and not 25%. It will only be 25% if there are 2 borrowers and only one person is entitled to apply for the remission.

Either way, if you don't feel comfortable with paying them up front then tell your solicitor that you will settle the stamp duty payable only upon the the assessment notice has been extracted. Ask them to show you the stamp duty payable printed on the assessment notice first before you pay them.

In accordance to the Strata Management Act, the individual document of title to the property will be issued simultaneously at the time the purchasers take delivery of vacant possession of the property so I'm assuming that you will fall under the purview of this new Act.

Whether with or without the new Act, the law imposes an obligation for the developer to submit for the issuance of strata titles to the parcels held under master titles so i don't know why your agent gave you inaccurate information. Maybe his choice of word is wrong, probably he meant "not yet" rather than "did not".

Having the MOT completed is essential if the issue document of strata title has been issued because it will then cause the endorsement of your name as the owner on the title and the name of your financier as the chargee.

In respect of your prospect of selling the property to an intended purchaser in the future, if you are lucky, the developer may agree to a direct transfer and in this sense, you can save on paying the stamp duty for your MOT but if the developer don't then you can still do and need to complete your MOT first before proceeding the intended sale and purchase. the time frame for completion may vary depending on whether your property is a leasehold or freehold.

The process from going to your solicitor's firm to sign the relevant documents to presenting same at the land authority for registration is fast, should take about two (2) weeks or so BUT waiting for the extraction of the duly registered issue document of strata title is going to be a pain in the arse.

The extraction time could take up to ten (10) months from the date of presentation for registration.

MOT is only required to be completed if the individual document of title to the property has been issued. Anytime prior to that, not required. So, even if you make a request to the developer now, your request will be denied.

It's very difficult to determine "when" is the right time to complete the MOT because it depends entirely on the individual but take notice that there is law to impose a penalty of between RM1,000.00 to RM10,000.00 if the owner of the parcel fails to complete the MOT within twelve (12) months from the date the developer's letter informing the owner of the issuance of the individual document of title to the Property.

The discount is not one time exclusive in personam. It applies to every purchase.

If the AP/DL is issued/approved prior to the effective date of the amended Strata Titles Act then yes, the old law will be applicable. Thus, you need to check with the Developer on when the AP/DL is issued but I doubt you will get any help on this.

Whatever it is, just seek to have the title perfected in your favor as soon as possible rather than estimating how long a period you can delay the perfection.

before the coming into force of the Strata Titles (Amendment) Act, the period to perfect the transfer is twelve (12) months but after the amended Act came into effect, the period was subsequently changed to thirty (30) days.

in order to determine which period applicable to you, all you need to see is when was the developer's license is issued. if it's issued before the amended Act then twelve (12) months and if it's after then thirty (30) days.

Yeap, that's the correct Act.

The Solicitors' Remuneration Order (the order where solicitors charges their clients) has also been recently amended.

The rate has been upped quite significantly, modifying the first two (2) tiers:-

1st RM500,000.00 - 1%
2nd RM500,000.00 - 0.8%

as opposed to the previous provision:-

1st RM150,000.00 - 1%
2nd RM850.000.00 - 0.7%

This scale is applicable for both loan transactions/sale and purchase agreements.