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Process of Buying

Published: February 4, 2022

Stage 1

  • Explore properties

Stage 2

  • Submit intention to buy through a Letter of Offer or developer’s sales form with intent to purchase + agreed upfront payment (usually 2 to 3%)

Stage 3

  • Apply for financing of property if required
    • Under MM2H, usually 80% of total purchase price
    • Without MM2H, usually maxed out at 70%
    • Individuals can consider sourcing home loan overseas as well

Stage 4

  • Provide lawyer with relevant documents, including:
    • Photocopy of passport
    • Correspondence address
    • Contact details
    • Income tax details
    • Location of tax payments for purchase of secondary market properties

Stage 5

  • Sale and Purchase Agreement (SPA) will be signed within 14 days of the letter of offer. The SPA will include the terms and conditions of what is covered in the sale.
    • 10%% down payment is required at this stage (inclusive of 2 to 3% paid in Stage 2)

Stage 6

  • Solicitor will apply for final state authority consent. The property must meet the noted requirements by state prior to this point. Submission documents include:
    • 1 certified true copy of SPA
    • 1 certified true copy of passport
    • 1 certified true copy of company constitution (if applicable)
    • Latest quit rent assessment receipt for the property
    • Application form as per section 433B of National Land Code

Stage 7

  • Pay the remaining balance of 90% on the property purchase price as defined under SPA or Schedule H Housing Development (Control and Licensing)(Amendment) Regulation 2015

Stage 8

  • Developer delivers vacant possession within 24 months for individual title or 26 for strata title properties under development.

Stamp duty

Residential property purchases in Malaysia are subject to payment of stamp duty at the point when the SPA is stamped

Residential Property PriceStamp Duty
First RM 100,0001%
RM 100,001 – RM 500,0002%
RM 500,001 – RM 1 million3%
Over RM 1 million4%

Standard Legal costs

Residential Property PriceLegal Cost
First RM 500,0001% (subject to minimum fee of RM 500)
RM 500,001 – RM 1 million0.8%
RM 1,000,001 – RM 3 million0.7%
RM 3, 000,0001 – RM 5 million0.6%
Over RM 5 million0.5%
Over RM 7.5 millionNegotiable (will not exceed 0.5%)