Sale & Purchase Procedures (Vendor)

TO DISPOSE A PROPERTY IN MALAYSIA

PROFESSIONAL FEE

(a) Land and Buildings
Professional fee of 3%

(b) Fees for other services such as joint venture, sale of company, property swaps, etc
Professional fee of 3%

(c) Chattel, including Plant and Machinery 10% of the proceeds.

PLUS

6% government tax on the agency fee

The above scale applies to any sale or purchase by way of private treaty, tender or any other mode of disposal or acquisition.


LETTINGS

Duration of Tenancy
Maximum Fee
1 To 2 Years1 months rental
Up to 2 years1.25 months rental
Exceeding 2 years up to 3 years1.50 months rental
Exceeding 3 years up to 4 years 1.75 months rental
Exceeding 4 years (with option for renewal)1.75 months rental
Exceeding 4 years (without option for renewal)1.75 months rental PLUS 0.25 months rental for every additional year

CANCELLATION

In the event that the Earnest Deposit is paid but the transaction is aborted before the Sale and Purchase Agreement is signed,

Pay a fee of 50% of the Earnest Deposit

OR

Pay 50% of the full fee

(whichever is the less within seven (7) days from the date of cancellation)


ADDITIONAL CLAIMS

In addition to the fees stated in items 1 to 3, claims may be made for:-

(a) the cost of printing, plans, copies of documents, lithography, traveling (only where the distance between the estate agent’s office and the property is more than 40km) and other expenses actually incurred:

(b) the cost of media advertisement. Signboards, brochures and other promotional material.

Note:

The above additional claims may not be incurred by the registered estate agent without the prior concurrence of the client.


PROPERTY TRANSACTION IN MALAYSIA

Procedure
Payment
Action
Buyer confirmed to buy, pay earnest deposit to Agency as a stake-holder.3% of Purchase Price Vendor agreed to sell.
Sign Letter of Offer.
14 days later. Buyer's loan approved, instruct the lawyer to prepare the Sale & Purchase Agreement7% of Purchase PriceVendor & Purchaser sign Sale & Purchase Agreement
3+1 months after signing Sale & Purchase Agreement90% of Purchase PriceBank released the loan to Vendor. Buyer take possession of property

SALE AND PURCHASE AGREEMENT LEGAL FEES

Amount
%
First RM 150,0001.00
RM 100,001 – RM 500,0000.75

SALE AND PURCHASE AGREEMENT STAMP DUTY

Amount
%
First RM 100,0001.00
RM 100,001 – RM 500,0002.00
RM 500,001 – RM 2,000,0003.00
RM 2,000,001 and above4.00

REAL PROPERTY GAIN TAX (RPGT)

Real Property Gains Tax (RPGT) is a form of Capital Gains Tax that is imposed on the disposal of property in Malaysia.

The Vendor will be only be taxed on the positive net capital gains which is disposal price less the purchased price less the miscellaneous charges such as;( stamp duty, legal fees, advertisement charges ,etc). Additionally, a waiver on the taxable amount is granted to individuals (but not companies). The holding period is from the date on the S&P agreement till to the disposal date.

The following is the RPGT rates effective from 1st January 2014.

Disposal
CITIZENS / PR
NON-CITIZENS
COMPANIES
< = 3 Years30%30%30%
< = 4 Years20%30%20%
< = 5 Years15%30%15%
> 5 Years-5%5%


CHARGEABLE GAIN

1. Acquisition Costs

a. Legal Fees on Sale and Purchase Agreement

b. Legal Fees on Loan Agreement

c. Stamp Duty

d. Advertisement Costs

e. Interest paid to Bank before Issuance of CT

2. Expenses spent to enhance the value of the property

a. Renovation Costs

b. Fixture and HI rings

c. Furniture (if the property is presently sold with furniture )

3. Disposal Costs

a. Real Estate Commission

b. Legal Fees on Sale and Purchase Agreement

c. Administrative Charges To Developer for Consent

d. Advertisement Costs


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