Q&A about Gifting Property in Malaysia
In this article, we will have some very common questions that are often asked by our clients and prospects.
Question 1: I have a joint-name property with my husband. Could he transfer the half share of the property to me as a gift?
Answer: Yes, it can be done so long the said property is not subject to any bank loan at the moment. You will have to engage a conveyancing lawyer to effect such a property transfer between husband and wife by way of love and affection.
Question 2: Can I still do a property transfer if the property is still subject to loan?
Answer: No, the existing loan must be first settled either with cash OR from a new refinance loan. However, in some very very rare cases, the existing banks may agree to a property transfer with the existing loan being remained at the property. It is highly advised to check with your banks before proceeding.
Question 3: Do I need to engage a lawyer to perform a property transfer from myself to my children?
Answer: Yes, an experienced conveyancing lawyer is always required to handle the property transfer from preparing the Deed of Gift, Memorandum of Transfer and other accompanying documents in accordance to the requirements set out by the National Land Code and the relevant land office until the property is duly registered under the new owner name.
Question 4: How long does it take to complete the property transfer process?
Answer: The whole process generally will take about 2 months plus for the freehold properties and take about 3 to 5 months plus for the leasehold properties. Do take note that in some cases, it may take longer time if it involves some complex issues, for example if the said property is also subject to low-cost consent, or when the strata title has been issued but the same has yet to be perfected to the owner’s name and the developer is involved.
Question 5 : How about the stamp duty?
If the property transfer is to be done by way of love and affection for the following groups, the stamp duty will be RM10.00 only, provided that the market value of the property or the market value for the portion of the property (which will be transferred) does not exceed RM1million.
Transferor |
Receiver |
Husband |
Wife |
Wife |
Husband |
Parent |
Children |
Children |
Parent |
Grandparent |
Grandchildren |
Grandchildren |
Grandparent |
On the other hand, the property transfer between individuals which are not mentioned above, it would be subject to the ad-valorem stamp duty pursuant to Third Schedule of Stamp Act 1949 as follows:-
1st RM100,000.00 |
1% |
RM100,001 to RM500,000 |
2% |
RM500,001 to RM1,000,000 |
3% |
RM1,000,001 and above |
4% |
Therefore, the property transfer between siblings, in laws, friends and others are subject to the full stamp duty which will be calculated based on the market value of the property.
Question 6: How do I know the market value of my property?
Answer: You may check the estimated market value of your property by browsing through some online websites which advertise properties. As an alternatively, you may also engage a valuer to conduct a proper valuation check on your property.
Question 7: How do I know if the property transfer is completed?
Answer: When your lawyer has completed the property transfer, the original title deed (a.k.a. geran) of the property will reflect the new owner’s name and the same will definitely be returned to the new owner for safekeeping.
Question 8: How much is the lawyer fees and charges for property transfer?
Answer: The legal fees will be calculated based on the value of the property and some other factors, such as whether the property is a freehold or leasehold, whether the property transfer is subject to the low-cost consent etc.
