Costs involved in the Purchase of Property
1. Deposit of Purchase Price
It could be 10% of the purchase price, or it could be any different amount as determined by the agreement between the seller and the buyer.
2. Legal Fees for Sale and Purchase Agreement & Loan
| RM | % | |
|---|---|---|
| Up to | 10,000.00 | 2.50 |
| For the next | 40,000.00 | 1.00 |
| For the next | 50,000.00 | 0.90 |
| For the next | 200,000.00 | 0.80 |
| For the next | 400,000.00 | 0.70 |
| For the next | 500,000.00 | 0.60 |
| For the next | 1,000,000.00 | 0.45 |
| For the next | 3,000,000.00 | 0.35 |
| For the next | 5,000,000.00 | 0.25 |
Example:
Purchase Price: RM 600,000.00
Legal Fees for Sale & Purchase Agreement
- RM 10,000.00 x 2.5% = RM 250.00
- RM 40,000.00 x 1.0% = RM 400.00
- RM 50,000.00 x 0.9% = RM 450.00
- RM 200,000.00 x 0.8% = RM 1,600.00
- RM 300,000.00 x 0.7% = RM 2,100.00
Total Legal Fees = a + b + c + d + e
= RM 4,800.00
3. Stamp Duty (Memorandum of Transfer (MOT))
| Amount | RM |
|---|---|
| First RM100,000.00 | 1% |
| Next RM400,000.00 (RM101,000.00 – RM500,000.00) | 2% |
| Next RM500,000.00 (RM501,000.00 – RM1million) | 3% |
| Balance (> RM1million) | 4% |
Example:
Purchase Price = RM 600,000.00
Stamp Duty (MOT)
- RM 100,000.00 x 1% = RM 1,000.00
- RM 400,000.00 x 2% = RM 8,000.00
- RM 100,000.00 x 3% = RM 3,000.00
Total Stamp Duty = a + b + c
= RM 12,000.00
Note: First home buyer will be exempted from paying stamp duty (Memorandum of Transfer) subject to specific terms and conditions.
4. Stamp Duty of Loan Agreement
A rate of 0.5% will be imposed on the Loan Sum (excluding the amount financed for insurance ie. MRTA)
Example:
Loan Amount = RM 600,000.00
Stamp Duty (Loan Agreement)
- RM 600,000.00 x 0.5%
= RM 3,000.00
5. Valuation Fee
A valuation report is necessary for purchasers obtaining a loan from the bank to purchase the property. It is a pre-condition for the bank to disburse the loan sum.
6. Miscellaneous
Quit Rent, Assessment, Utilities Deposit (SESB & Jabatan Air), Management Fee.
If you have any questions or require any additional information, please contact our lawyer that you usually deal with.