How to buy a Real Estate Property in Malaysia

How to buy a Real Estate Property in Malaysia


If you buy something in the supermarket, the process is very simple, we normally go to the cashier and give the cash to the cashier to pay it and the cashier will give you a receipt as proof that you have already paid the item and the item is yours. But if you are buying a property, it is normally a very long process until you can finally say that the property is yours. If you are planning to buy a real estate property in Malaysia, you need to know the process of buying the property and the necessary fees to be paid before you can own a property. So, what are the process of buying a real estate property in Malaysia?

First step in buying a property in Malaysia is to get a real estate lawyer to assist you in the transaction. Once you have already selected which property to purchase, a Letter of Offer/Acceptance is signed by the seller and buyer. The buyer must pay 3% deposit to the seller after signing this letter. Within 14 days thereafter, the Sales and Purchase Agreement (SPA) must be signed and the buyer must pay another 7% as a deposit. From the date of signing the SPA, the buyer has a maximum of three months to complete the full payment.

The Sale and Purchase Agreement must be stamped at the Stamp Office. The valuation department will make an inspection to the property and after the examination of the property, the Stamp Duty haas to be paid at the Stamp Office. And the transfer must be registered at the Land Office Registry.

The following are the costs of buying a property. Stamp Duty is computed as 1% of the property value for properties below RM100,000, 2% for properties valued at RM100,000 – RM500,000, 3% for properties valued at RM500,000 – RM1,000,000 and 4% for properties which value is over RM1,000,000. The legal fee is also based on the value of the property which is 1% for properties below RM150,000, 0.70% for properties with value of RM150,000 – RM1,000,000, 0.60% for properties valued at RM1,000,000 – RM3,000,000 and 0.50% for properties valued at RM3,000,000 – RM 5,000,000 and 0.40% for properties valued at RM5,000,000 – RM7,500,000. If the property is valued more than RM7,500,000, legal fee is negotiable but shall not exceed 0.40% of the value of the property.


Other fees are estimated to be RM180.00 in total which includes stamping fee, adjudication fee, search fee, and registration fee. Another fee to be considered is the real estate fee who gets the commission of the sale of the property its could either be taken from the buyer of the seller but most of the time, the commission is given by the seller.The minimum fee of the real estate agent’s fee is RM1,000 or 2.75% of the property cost for properties below RM500,000 and 2% for properties more than RM500,000. But the 2% and 2.75% rate is not applicable for foreign properties in Malaysia.

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