Hi All,

would like to ask, if a property was bought under parent's name (let say the mother's name in the s&p) but the housing loan is with the child's name, meaning the housing loan instalment is still ongoing and the child is the one servicing the loan.

in this situation, is it better for the parent to do a will so that the child can righfully inherits the property in the future?

Thanks in advance.

it is always good to do a will 1st.

if there is no will, i think all the close family can claim the properly

If parent want to give to you, make a will. If not parent consider the house is their present.

do will = pay rm10 stamp duty

pro of doing will = save stamp duty
con of doing will = other children may contest the will if excluded from the will, but in this case if that child is solely paying the house instalment, even if contested that child servicing instalment high chance to get the property since he's paying the instalment. but this doesn't mean the other children will initiate legal proceeding and all parties will be stuck for 1/2 - 1 year to battle it out.

transfer now = pay 50% stamp duty

pro of transfer now = that child con9lan7firm will get the property, but need to refinance the loan
con of transfer now = pay higher stamp duty + need to refinance loan (might be diff interest rate)

so, best to decide based on the circumstances.

Thanks for the information.

Regarding the option to transfer now, the 50% stamp duty is that the stamp duty for strata title transfer?
How is the amount for this stamp duty being calculated?

Thanks again.

based on market value, LHDN will decide.

Since you are the borrower (loan in your name), you can check with the bank whether they are agreeable to let your parents transfer the house to you subject to the loan. If bank allow, then you don't need to refinance.

Stamp duty for such cases will be based on the house's market value (LHDN to decide).