Updated: Aug 9
Purchasing a property in Malaysia involves a series of legal steps known as conveyancing. This process ensures a smooth and legally binding transfer of ownership from the seller to the buyer. If you're considering buying a property in Malaysia, here's a concise overview of the conveyancing process:
Step 1: Offer and Acceptance
The process commences when the buyer makes an offer to purchase the property. Once the seller accepts the offer, a legally binding contract is formed between both parties.
Step 2: Preparing Sale & Purchase Agreement (SPA)
The buyer's lawyer prepares the Sale & Purchase Agreement (SPA). This vital document outlines all the terms and conditions of the property sale. Both parties will review and negotiate the SPA until a mutual agreement is reached.
Step 3: Title Search and Land Search
To ensure clear and undisputed ownership, the buyer's lawyer conducts a thorough title search to verify the property's ownership and any encumbrances. A land search is also performed to check for any outstanding charges or restrictions on the land.
Step 4: Financing and Loan Documentation
If necessary, the buyer arranges for financing and submits loan application documents. The buyer's lawyer prepares the loan documentation, including a charge and loan agreement.
Step 5: Executing SPA and Payment
Upon finalizing the SPA, both parties sign it in the presence of their respective lawyers. Simultaneously, the buyer pays the initial deposit as specified in the SPA.
Step 6: Stamp Duty and Legal Fees
Buyer pays the required stamp duty and legal fees to the Inland Revenue Board and the lawyer, respectively. Stamp duty is calculated based on the property's value and must be paid within 30 days from notice of assessment to pay stamp duty issued by LHDN.
Step 7: Transfer of Ownership
The buyer's lawyer will then submit all the necessary documents to the Land Office to transfer ownership. The Land Office will verify the documents and officially register the property under the buyer's name.
Step 8: Settlement and Handover
Finally, the buyer pays the balance of the purchase price to the seller's lawyer. In return, the seller hands over the keys and vacant possession of the property to the buyer.
Understanding the conveyancing process is essential for any property buyer in Malaysia. Engaging experienced lawyers specializing in conveyancing can help ensure a seamless and legally compliant property transaction.
By following these steps, buyers can navigate the complexities of property ownership in Malaysia with confidence, making the dream of property ownership a reality.
Remember, each property transaction is unique, and it is recommended to seek professional advice to ensure a smooth conveyancing process tailored to your specific circumstances. Happy property hunting!