If you’re planning to buy or sell a home in Malaysia, you’ll navigate a legal framework designed to protect owners, purchasers, and lenders—while ensuring land records remain accurate. This guide walks you through the core laws, the standard conveyancing steps, the documents you’ll see, and key compliance issues. It’s written to be understandable for first-time buyers yet detailed enough for seasoned investors.
1) The Legal Framework at a Glance
Core legislation. Land matters in Peninsular Malaysia are governed primarily by the National Land Code 1965 (NLC), which sets out how titles are issued, how ownership is transferred, and how dealings like charges (mortgages) are registered. Sabah and Sarawak administer land separately under their respective land codes. jkptg.gov.mypracticeguides.chambers.com
New projects (from developers). For residential units sold “off-plan,” the Housing Development (Control and Licensing) Act 1966 (HDA) and its Regulations prescribe standard sale and purchase agreements (“SPA”)—Schedule G for landed and Schedule H for strata/high-rise. These statutory SPAs fix timelines, progress payments, and a defect liability period to protect homebuyers. commonlii.orghba.org.my
Taxes and duties. Two headline costs are stamp duty (on the transfer and loan instrument) and Real Property Gains Tax (RPGT) on disposals where a gain arises. The Inland Revenue Board (IRB/LHDN) publishes the prevailing rules and rates. hasil.gov.my+2hasil.gov.my+2
2) Title Basics: Freehold, Leasehold & Restrictions
Freehold land generally offers perpetual ownership. Leasehold land comes with a fixed tenure (e.g., 60 or 99 years) and often requires State Authority consent for transfers or charges. In many cases, even if the title doesn’t display a restriction, certain transactions may still need consent under state policies. A land search will confirm the status and any “restriction in interest.” jkptg.gov.myHHQ –mahwengkwai.com
Peninsular vs East Malaysia. Peninsular Malaysia follows the NLC; Sarawak and Sabah apply their own land codes and consent regimes. Timelines and requirements can differ—your lawyer will adapt the process accordingly. practiceguides.chambers.com
3) The Conveyancing Timeline (Subsale)
Every file has its quirks, but a typical Peninsular Malaysia subsale runs 8–14 weeks from SPA signing to completion (longer if State consent, title issues, or complex discharges apply). Here are the major phases:
A. Pre-contract checks
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Land search: Confirm ownership, encumbrances (charges/caveats), and restrictions.
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Financing readiness: Buyer secures an offer letter from the bank.
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If leasehold or restricted: Plan for State Authority consent as a condition precedent. jkptg.gov.myHHQ –
B. The Sale & Purchase Agreement (SPA)
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Sets the purchase price, deposit (commonly 10% with earnest component), target completion date, conditions precedent (e.g., State consent, loan approval), and vacant possession terms.
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For new residential projects, the SPA is statutory (Schedule G/H) and includes staged progress payments and a defect liability period. hba.org.my
C. Financing & security
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The buyer’s bank issues a loan agreement and registers a charge over the property after title transfer (or takes a deed of assignment if title hasn’t been issued).
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The charge/assignment and the loan instrument are subject to stamp duty. hasil.gov.my
D. Taxes & duties (during/after SPA)
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Stamp duty: Payable on the instrument of transfer (Form 14A/Memorandum of Transfer, “MOT”) and on the loan agreement; IRB prescribes valuation and deadlines, and penalties apply for late stamping. hasil.gov.my+1
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RPGT: Sellers must file CKHT forms and pay any RPGT due based on holding period and category (individual/company/non-resident). Always check current IRB rates and exemptions. hasil.gov.my+1
E. Completion & transfer
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On completion, monies move through the stakeholder solicitor in exchange for executed transfer documents (e.g., Form 14A), original title, keys, and undertakings (including discharge of existing charge).
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The lawyer files the MOT for adjudication and stamping, then registers the transfer (and any charge) at the Land Office/Registry. Upon registration, the purchaser becomes the legal proprietor. jkptg.gov.my
F. Vacant possession & post-completion
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Buyer receives keys (and, for strata properties, relevant strata documents and building management onboarding).
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For developer sales under HDA, the defect liability and warranty mechanisms apply as per the statutory SPA. hba.org.my
4) New Residential Projects: Special Protections
Buying from a licensed developer offers statutory safeguards under HDA:
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Standard SPAs (Schedule G/H) with fixed construction milestones and a liquidated ascertained damages (LAD) framework for late delivery.
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Defect liability—developers must rectify defects notified within the DLP.
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Progress payments are usually disbursed by the bank against architect/engineer certifications per the schedule.
These protections do not generally extend to commercial units or subsale of completed properties. commonlii.orgiProperty
5) State Consent, Foreign Ownership & Other Approvals
Some transactions require State Authority consent, commonly in leasehold transfers or where a restriction in interest appears on the title (e.g., “No transfer or charge without consent”). Processing times vary by state and can affect completion dates. HHQ –mahwengkwai.com
Foreign purchasers typically face minimum price thresholds and policy conditions that are state-specific (often different for residential vs commercial, stratified vs landed, and by location). A land search and early engagement with your lawyer help flag these issues and build them into the SPA as conditions precedent. practiceguides.chambers.com
6) Costs to Expect
While each file differs, buyers and sellers should budget for:
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Professional legal fees (scale fees typically apply to conveyancing and loan documentation).
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Stamp duty on the transfer (MOT/Form 14A) and loan documents—assessed per IRB rules and valuation; late stamping penalties can apply. hasil.gov.my+1
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Disbursements (land search, registration fees, adjudication fees, bankruptcy search, miscellaneous).
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RPGT for sellers, if applicable, with CKHT filings within statutory timelines. hasil.gov.my
For first-time homebuyers and other targeted groups, stamp duty remissions/exemptions may be available from time to time—always verify the current incentives and qualifying criteria. hasil.gov.myPropertyGuru
7) Compliance & Risk Management (Why a Lawyer Matters)
Conveyancing law firms in Malaysia act as reporting institutions under anti-money laundering laws. Expect basic KYC checks and source-of-funds queries—this isn’t red tape; it protects the parties and keeps your transaction bankable. A lawyer also:
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Detects title defects, caveats, and encumbrances early.
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Tailors conditions precedent (e.g., State consent, redemption/discharge of existing charge, strata issues).
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Synchronises timelines between buyer, seller, banks, and land office to avoid default.
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Manages stakeholding and undertakings so documents and money move safely and in the right order.
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Keeps you compliant on RPGT filings and stamp duty deadlines. Scribd
8) Strata & Post-Handover Considerations
For strata properties (condos, serviced apartments, mixed developments), you’ll encounter Management Corporations (MC/JMB), service charges, sinking funds, and by-laws. On new projects, once the strata title is issued, your lawyer will handle perfection of transfer and charge so the bank’s security mirrors the registered title. The HDA statutory SPA (Schedule H) provides a framework on delivery, common property, and defects. hba.org.my
9) Seller’s Corner: Preparing for a Smooth Exit
Sellers should:
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Arrange early redemption statements if the property is charged to a bank.
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Expect RPGT compliance (CKHT forms, supporting docs).
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Provide full sets of keys/access cards, execute Form 14A, and deliver undertakings (e.g., to procure discharge and release of title).
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Be transparent about renovations and approvals (where relevant) to avoid post-completion disputes. hasil.gov.my
Final Word (and Why to Instruct a Conveyancing Lawyer)
Malaysia’s property system is documentation-heavy—but for good reason: once registered, your title is clear, your bank is secured, and your transaction is enforceable. A conveyancing lawyer orchestrates the moving parts—title checks, statutory SPAs, State consent, stamp duty and RPGT filings, loan and charge registration, and safe stakeholder arrangements—so you can focus on the big picture: moving in or moving on. jkptg.gov.myhba.org.myhasil.gov.my+1
Disclaimer: This guide is for general information only, reflects Malaysian law and practice at the date of publication, and may not cover state-specific variations or recent policy changes. Always seek tailored legal advice before acting.
