My uncle bought a house at RM 300k 10 years ago. There is still outstanding amount of RM 30k. He wish to give the house to me and I will take over his loan with a local bank. I will not pay my uncle any money. The market value of the house is RM 600k now.

I guess it doesn't make sense for me to apply for housing loan since I'm not paying him any money and the balance is only RM 30k. A few questions:
w/o SPA:
1. Does MOT indicate the market value of the house?
2. If I want to sell the house after 1 year, how is the RPGT calculated? Will RPGT be calculated based on on the full RM600k as I kinda got it for "free"?
3. How is MOT fee calculated? Is it still based on market price RM 600k or can get the lawyer to quote much lower?

with SPA
1. Does it make sense to just do a SPA and say I purchase the house at market value RM 600k? But I don't actually pay my uncle any money. I will just give my uncle RM 30k to settle his bank loan separately
2. If I want to sell the house after 1 year and I sell it at market rate RM 600k, I suppose RPGT not applicable to me since I technically didn't "profit" cos SPA is RM 600k
3. MOT fee is calculated based on SPA price RM 600k?

Finally, is it ok for us to perform the MOT to my name first. Then I will just continue to pay off my uncle's housing loan on a monthly basis? Housing loan still in uncle's name. Or it's mandatory to have both housing loan and MOT under the same name?

Thanks in advance.

w/o SPA
1. Yes. To be precise, the market value will be assessed by LHDN
2. The market value will be the "price" which you have obtained the house
3. Based on market price

with SPA
1. If me, I will go for SPA so I can get apply for bank loan for cash out. Then invest in another property or in my biz.
2. Yup. Bear in mind, you can also deduct lawyer's and agent's fees
3. Based on SPA price or market value, whichever is higher

[quote=LazyCat666,May 9 2023, 10:00 AM]
w/o SPA
1. Yes. To be precise, the market value will be assessed by LHDN
2. The market value will be the "price" which you have obtained the house
3. Based on market price


In this case, the "price" is 0?

[quote=loyiwei,May 9 2023, 10:09 AM]
[quote=LazyCat666,May 9 2023, 10:00 AM]
w/o SPA
1. Yes. To be precise, the market value will be assessed by LHDN
2. The market value will be the "price" which you have obtained the house
3. Based on market price
In this case, the "price" is 0?

[/quote]
No, the market value assessed by LHDN will be your acquisition price for stamp duty and also for RPGT purposes

Thank you for the reply. If only 50% of the stake is transfer, LHDN will use market value divided by 2 for stamp duty?

Also, in future for RGPT, how is it calculated for this case?

Say, my uncle give me the house today and LHDN assessed the market value as at today RM 600k. No spa. Then if I sell it 1 year later and my selling price is RM 600k, no RPGT in this case right?

I was concerned if I sell it at RM 600k then LDHN will tax me on the full RM 600k since my uncle give it to me and the actual purchase cost is 0.

This post has been edited by nick_linz: May 9 2023, 11:29 AM

Yes, follow your share which is 50%.

Yes, no RPGT in that case

Correct me if I'm wrong. Either way, you need to pay for MOT. Why not you ask your uncle sell it 1 year later and give you the cash amount sold like 600K to save all the hustle and also no need to pay for MOT.

This post has been edited by JustNobody: May 9 2023, 02:47 PM

1 year is not a short time. Uncle may change his mind

Uncle hardly comes back to Malaysia and he's not young anymore 😆 I want to settle it in the most straight forward way now and get it from him first... Then deal with other stuff later

Out of topic, your uncle doesn't have children, that's why transfer to you? Need some input for my thought process for future.

Thank you for the reply. However, after one receives the 50% share and pays stamp duty according to market value, if later on both owners want to dispose the property in future, how is RGPT calculated?

Follow your shares, i.e. everything divide into 2. Market value is 600k and your uncle transfer 50% share to you. So your "acquisition price" will be 300k.
If after 1 year, you sell the property for 700k, your "disposal price" will be 350k. Rough profit will be 50k. Hope this is clear

U can do a SPA for 600k on the transfer.. then finance it with another bank for 50k..
So your bank will pay off your uncle 30k, and will give your uncle extra 20k in which u can ask lawyer to take it out for you to settle all the transfer costing.

So u will get the property transfer to you on paper of 600k, and u hutang bank 50k, and your uncle dont hutang anything.

Future u sell 650k also no issue..

Interesting point. A few queries though.

1) spa 600k, loan 50k. How to convince the bank you have 550k cash for the down payment? If you inform the bank uncle gives you for free, what is the procedure?

2) will uncle kena RPGT since he "untung" 300k on paper?

1. The 550k is not an issue. The bank got to enter into a property with value 600k and charge it for 50k loan.. if you default, they can lelong it and get back with ease... usually no issue. Infact many land and properties are collateralized on 70% and below for quick cash.
Your case is only less than 10%

2. That you will have to refer to lawyer on current rpgt rules. Since he did not utilize it before, he can use once in a lifetime free rpgt. So technically is foc

1. Banks will ask to show proof that you have the cash for down payment during loan application - at least mine did, and the loan officer said it's SOP.

2. If uncle utilized rpgt waiver before, means he kena pay rpgt?

https://www.iproperty.com.my/guides/stamp-d...-malaysia-24760

Hope this helps

He has children but all based overseas and they almost never come back except my uncle who does that occasionally. I guess he's well to do overseas and decided to pass it to me

For my case, the latest RPGT rules is 0% if sold 6th year onwards. So not applicable.