Buying & Renting Guides

Standard Procedure of Purchasing or Renting A Property

Standard Procedure of Purchasing / Renting a Property In Malaysia

Purchasing a Property In Malaysia

Pay 3% of purchase price as earnest deposit (Sign letter or offer). Pay 7% or purchase price 14 days later (Sign Sale & Purchase Agreement). Pay 90% of purchase price 3+1 month later. Professional Fee: Schedule 7(C)(1) uner Rule 48 (a) of the VALUERS, APPRAISERS AND ESTATE AGENT RULES 1986, provide: The scale of Fees to be charged by registered agents for their professional services for the Sale & Purchase of Land and Buildings shall be: a) Land and Buildings - Fee of 3% b) Fees for other services such as joint venture, sale of company, property swaps, etc. - Fee of 3% c) Chattels including Plant and Machinery - 10% of the proceeds plus 6% Government Service Tax, payable by the Landlord.

Residential Renting a Property In Malaysia

Pay 1 month Rent as earnest deposit (Sign letter of offer) Pay in 7 days 2 months rental as security deposit. 1/2 month as utility deposit. Stamp Duty and disbursement (Sign Tenancy Agreement)

Commercial Renting a Property In Malaysia

Pay 1 month Rent as earnest deposit (Sign letter of offer) Pay in 7 days 3 months rental as security deposit. 1 month as utility deposit. Stamp Duty and disbursement (Sign Tenancy Agreement)

Professional Fee: Our professional fee is equivalent to 1 month's rental plus 6% Government Service Tax, payable by the Landlord. Legal Fee Sales & Purchase Agreement (S&P) Scale Percentage 1. First RM150,000.00 1% 2. Next RM850,000.00 0.7% 3. Next RM2,000,000.00 0.6% 4. Next RM2,000,000.00 0.5% 5. Next RM2,500,000.00         0.4% 6. Excess of RM7,500,000.00 Negotiable on the excess but shall not exceed 0.4% of such excess Loan Agreement Scale Percentage 1. First RM150,000.00 1% 2. Next RM850,000.00 0.7% 3. Next RM2,000,000.00 0.6% 4. Next RM2,000,000.00 0.5% 5. Next RM2,500,000.00 0.4% 6. Excess of RM7,500,000.00 Negotiable on the excess but shall not exceed 0.4% of such excess Disbursements are chargeable in accordance with the value of the transaction and all fees attract 5% Government Service Tax (GST). Real Property Gain Tax - RPGT The real property gains tax will now only be applicable to properties that are sold within five years of their purchase. The Six percent (6%) tax would be imposed on those who sold their properties within less than five years after purchasing them, while the announcement in the 2010 Budget saw the tax being imposed on all properties sold. Citizens and permanent residents also enjoy an exemption of RM5,000 or 10% of the gains whichever is the greater, besides a one-time tax exemption on the gains arising from the disposal of one private residence.  For non-citizens and non-permanent resident individuals, gains from the disposal of real property within five years are taxed at a flat rate of 30%, after which the tax rate will be 5%.   ~~~~~~~~~~~~~~~~~~~~~~ For your Information, the Real Property Gains Tax (“RPGT”) is a form of tax that you have to pay when you sell any landed property, for example, a residential house, a shop house (including a shop lot, an apartment and a flat). No gains tax is payable if you buy a landed property. In other words, the Real Property Gains Tax Act 1976 (the “RPGT Act”) only applies to the sale, but not the purchase of any landed property. The executor is the person (named in a will) who administers the estate (that is, the property) of a deceased.  RPGT introduced in 1975 No gains tax was payable up to the end of 1975. It was introduced by the RPGT Act on 7 November 1975 The RPGT Act was enacted to replace the Speculation Tax Act (since repealed). The Speculation Tax Act was supposed to be a temporary measure to fight speculation in landed property during the boom period in the seventies. It was found to be a good source of revenue. The RPGT Act was then passed to perpetuate the tax on sale of land in the form of gains tax. Gains tax has since been payable for the past 30 years.