3 ways to safe cost in preparation of property sale and purchase agreement.

1. Stamp Duty is the duty payable to the government where in most cases the costliest item in property transaction. To know how much your stamp duty cost please insert the amount of purchase price below and press to calculate.

Stamp Duty – Sale & Purchase/ Transfer

Stamp Duty Calculator	?
Formula Rate First RM100,000 1% Next RM400,000 2% Next RM500,000 3% Thereafter 4% Property Selling Price/ Market Value whichever is higher : Total Stamp Duty Payable by Purchaser :

Cost Saving : From time-to-time government do announces stamp duty relief. The latest good new that the government has announced recently full stamp duty exemption (which means you don’t have to pay stamp duty) if you could satisfy the followings criteria:-

• Effective date: 1^st January, 2021 to 31 December, 2025;
• Only for the purchase of residential property below value of 500k. Residential Property means “ a house, a condominium unit, an apartment or a flat purchased or obtained solely to be used as a dwelling house”;
• Only for Malaysian citizen; and
• The individual has never owned any residential property including a residential property which is obtained by way of inheritance or gift, which is held either individually or jointly.

You are able to meet the above criteria you don’t have to pay stamp duty. Even better, this even apply for stamp duty of loan documents.

The stamp duty exemption can be found in the followings government gazette:

• Stamp Duty Exemption order 2021
  
• Stamp Duty Exemption (No.2) order 2021
  

2. Legal Fees: The amount of legal fees payable for any lawyers in west Malaysia is the same. This uniformity is due to the Solicitors’ Remuneration Order 2005. In general for preparation of sale and purchase agreement the amount of legal fees are as below:-

Cost Saving: Discount maybe granted under Solicitors’ Remuneration Order 2005. In respect to the amount of cost saving is very much based on how much your lawyer is charging you and subject to Solicitors’ Remuneration Order 2005.

3. Private Caveat: Once you have signed the sale and purchase agreement it may take weeks, months to years to get the Property transferred to your name. The duration is depends on the complexity and the nature of property. Certain properties are very straight forward may just take 2 to 4 weeks to get it transferred. Some properties require court order (such as there is deceased Vendor) or government permission for sale (such as low cost property) and etc. So you may need stop any transaction on the property until the property to transferred to your name. To do this your lawyer will lodge a Private Caveat. His may cost a few hundred ringgit.

Cost Saving: One of to safe cost is by not lodging a private caveat. However, there is risk of not protecting your interest enough. It will be wise for you to talk to your lawyer to ascertain whether you want to take such risk of not lodging a private caveat