Property FAQ

1. How much is the legal fees for purchasing a property?

The legal fees payable is calculated based on the purchase price as follows:

  • For the first RM500,000, the legal fees payable is 1%
  • For the next RM500,000, the legal fees payable is 0.8%
  • For the next RM2,000,000, the legal fees payable is 0.7%
  • For the next RM2,000,000, the legal fees payable is 0.6%
  • Thereafter, the legal fees payable is 0.5%

Exp:  if the purchase price is RM1,250,000.00

Total legal fees payable: (RM500,000 X 1%) + (RM500,000 X 0.8%) + (RM250,000 X 0.7%) = RM 10,750.00

2. How much is the Real Property Gain Tax (RPGT)?

Malaysian Company Non-Malaysian
Disposed within 3 years 30% 30% 30%
Disposed in 4th year 20% 20% 30%
Disposed in 5th year 15% 15% 30%
Disposed after 5 years & above 0% 5% 5%

3. What’s the different between freehold and leasehold?

Nature Leasehold Freehold
Tenure Lease duration is usually30,60, 99 & 999 years Duration limited by town planning authorities
Approvals Required Lease transfers require State or its equivalent approval Few limitations on transfer of property
Ownership rights You just have the lease of the freeholder or Landlord to use the home/property for “N” number of years You own the building and the land it stands on outright, in perpetuity

4. What’s the difference between the residential title and commercial title?

Residential Title

i) You can do anything you like in your house, i.e. host a party, call guests over, buy whatever furniture you want – most importantly you can sleep there without being chased out
ii) You are not bound by law to have a working water sprinkler in your house in case of a fire
iii) It is not compulsory for you to have fire insurance in case your property burns down
iv) You can have a proper kitchen, not just a pantry
v) You are not allowed to convert your house into an office or a shop, you will need special approval and permits for that
vi) Most importantly, your water, electricity, Indah Water, quit rent and assessment fees follow residential (cheaper) rates

Commercial Title

i) You are not allowed to convert your property into a house, i.e. no hosting parties, no moving a bed and wardrobe in, and if anyone catches you sleeping and living in your office like it’s your house, legal action can be taken against you
ii) It is compulsory for all commercial properties to have water sprinklers as ruled by the Bomba department
iii) It is compulsory for all commercial properties to have fire insurance in case the property burns down as ruled by the Bomba department
iv) Commercial properties are only allowed to have a pantry, not a kitchen (restaurants are exceptions with special approval)
v) Most importantly, the water, electricity, Indah Water, quit rent and assessment fees follow commercial (more expensive) rates

5. I’m a foreigner and I would like to purchase a property in Malaysia, what should I do?

Any foreigner may purchase any number of residential properties in Malaysia, subject to the minimum price established for foreigners by the different states. It is important to check state laws before making any commitment, as the minimum purchase price is not standardized between states.

List of minimum price for purchase a property

6. What are the requirements for the loan application?

  • Age of 18 & above
  • Malaysia citizen
  • Have a regular income
  • Have a working bank account
  • Salaried individuals
  • EPF and/or income tax (if any)

7. What’s the different between MRTA and MLTA?

MRTA MLTA
Purpose Protection Protection saving and cash value
Protection Sum insured reduce accordingly to loan tenure Sum insured remains the same on a fixed level sum assured basis
Transferable No Yes
Nomination Beneficiary is bank Beneficiary can be anyone
Financing Usually financed into home loan Usually self-financed
Payment Lump sum Periodic (monthly, quarterly, semi-annually, or annually)
Premium Low High
Cash value No. It has a reducing cash value, which drops to RM0 at the end of the loan tenure. Yes. It has a fixed cash value (guaranteed) throughout the loan tenure.
Claim Insurance company will pay the loan balance to the bank and beneficiary will receive the home Insurance company will pay the loan balance to the bank and beneficiary will receive the home plus cash

8. How do I apply?

Kindly complete the online Application Form (on contact us section) and we will attend you soonest possible. If you need the assistance urgently, please feel free to call our helpline: +603 6257 8168 or message us in the message us box.

CONTACT

Phone: +603-4032 1155

Email: [email protected]