How to buy property in Malaysia ? 【Second-hand】

Procedure to buy property in Malaysia


When you plan to buy Property (house) in Malaysia, it is better to understand proper procedure to obtain. We summarize process below for sub-sale (second hand).

 

1. To appoint agent

Buyer should use agent to find property. It is very important to appoint good agent for buying process. You can find agent to check this KL Property Navi and other portal site.
 

2. Viewing



Agent will arange viewing, you must tell agent that your requirement as budget size etc
 

3. Negotiation

When you decisde to select property,  starting negotiation with seller about price etc,  Agent will help to do it.

 

4. Sign Letter of Offer and pay earnest deposit

After done negotiation with seller, you need to sign LO (letter of offer ) and pay earnest deposti (2-3% of purchase price).

↓Sample of LO

 

5. To appoint lawyer to prepare SPA

In Malaysia, lawyer prepare SPA ( Sale & Purchase Agreement) for buyer and seller. If you do not know any lawyer, ageent will introduce proper lawyer. It takes 2 weeks to 1 month to complete SPA for signing. 

※Sometimes takes more than 1 momnth due to lawywer is too detail


SPA

 

6. To pay 10% down payment

Buyer need to pay 10% (deduct 2-3% earnest deposit) to buyer lawyer together with signing SPA.

 

7. To obtain consent

Buywe need to get necessary consent as follows;

state consent ( if buyer is foreigner)

developer consent ( if property is under master title)

land office consent (if property is leasehold and strat title out)


 

8. To pay 90% (balance payment)

After obtain all consent, need to pay 90% (balance of purchase price) witin 90 days. 

※if buyer use bank loan, need to pay own fund first, then bank will release loan amount
 

 

9. Settlement outgoing payment

Buyer and seller need to settle payment as follows;

・maintenance fee & sinking fund
・fire insurenace
・assessment fee & quit rent
・utility bill 
・rental and security deposit  (if tenanted)

Lawyer and agent will help to settle it.


 

10. Handover the key (VP)

after settle all payment, seller need to pass all keys witihin 3-5 days (follow SPA) to buyer. Buyer need to check the unit to follow inventory list.

Vacant possession 

 

11. MOT

If  property is master title, buyer need to do MOT to get strat title. Lawyer will inform you to do this.

Master title
Strata title