Law On Transfer of Property Between Family Members In Malaysia
Law On Transfer of Property Between Family Members In Malaysia
Property Transfer By Way Of Love and Affection
We believe many people out there are thinking about transfer of property between family members by way of love and affection, ie without any payment of money or monetary consideration.
So how do you transfer property between family members in Malaysia?
Some common scenarios are as follows:-
- the parents wish to give properties to their children; or
- husband needs to transfer half share of the matrimonial house to the wife.
Memorandum of Transfer/Deed of Assignment
There is no requirement to sign a Sale and Purchase Agreement in such situation but there is necessity to sign the Memorandum of Transfer (MOT) where the property in question has title or Deed of Assignment where the property in question has no title or is under master title.
The consideration stated in the MOT or Deed of Assignment would be “love and affection” or “kasih sayang” in Bahasa Melayu.
Stamp duty
The MOT or Deed of Assignment still has to be stamped. However, such transfer of property between parent and children or married spouses is subjected to exemption.
CKHT
The transfer of property between parent and children or married spouses attract no gains tax because the recipient/transferee is deemed to have acquired the property in question at the same price as acquired previously by the donor/transferor. So there is no gain. However, note that it is still necessary to file the relevant CKHT forms with the Inland Revenue.
Legal fees
The professional fee will be based on the monetary consideration or the market value of the property in question. Where the consideration is for love and affection, the professional fee chargeable will be based on the market value of the property in question.
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