Property Transfer And Conveyancing Procedures In Malaysia
Conveyancing or property transfer procedures are a lengthy and tedious legal work in Malaysia. Therefore, it is important to appoint a good and experienced conveyancing and property lawyer to represent you.
Here is an overview of the conveyancing and property transfer process in Malaysia so that people can understand how it works and what your conveyancing and property lawyer needs to do.
1. Interviewing and/or discussing with the clients
|It is important to discuss with the clients as the first stage of the process because SPA is never a standard agreement.
To request from clients all the relevant documents and information.
To request from the opposite counsel all the relevant documents and information.
To advise clients appropriately.
|2. Drafting and preparing the SPA and other accompanying documents||To conduct all necessary searches, such as land searches, bankruptcy and/or winding up search.
Draft SPA will be forwarded to the client and the opposite counsel for both parties’ approval.
Other than the SPA, the parties will have to execute some other accompanying documents, such as Memorandum of Transfer or Deed of Assignment, Application for Consent from the land authority, supporting statutory declaration, CKHT forms etc.
|3. Signing SPA||After the draft SPA has been approved by both parties, then parties will proceed to sign the SPA and to be witnessed by their own solicitors.
The common practice is that the Purchaser will execute the SPA first.
Thereafter, the SPA and other documents together with the deposit will be forwarded to the Vendor’s solicitor for the execution by the Vendor.
The deposit will be released to the Vendor upon signing of the SPA.
|4. After signing SPA||The Vendor’s solicitor will return all the duly signed SPA and documents to the Purchaser’s solicitor. Subsequently, the SPA will be dated and sent for stamping.
Usually the SPA will begin to commence from the date of the SPA, ie. the SPA must be completed within the time frames stated in the SPA. The common practice is that one SPA will be completed within 3 months plus 1 additional month subject to late payment interest of 8%.
In cases where the SPA is conditional upon some condition precedent, then the SPA will only begin to begin after the condition precedent is fulfilled, regardless of the date of the SPA, such as issuance of the Developer’s consent or land office’s approval. Of course, this kind of the SPA will take longer time to be completed.
During the 3 months of the SPA, both parties’ counsel will be carrying out the respective tasks and/or obligations under the SPA for smooth completion.
|5. Redemption of the property from the Vendor’s bank||It is the obligation of the Vendor to request and obtain one Redemption statement from his bank and forward the same to the Purchaser’s solicitor or the Purchaser’s Financier’s solicitor. Any unnecessary delay in getting the Redemption Statement will be excluded in computing the 3 months of the SPA.
Usually the redemption sum to the Vendor’s bank will be paid from the balance purchase price of the Property.
After settling the redemption sum, the Vendor’s bank will return all the security documents, such as the original Title deeds or the original previous SPA.
|6. Dating and stamping the Memorandum of Transfer or Deed of Assignment||Take note that the Memorandum of Transfer or Deed of Assignment must only be dated after the Property is properly redeemed from the Vendor’s bank.
However, in reality, the process of getting the Memorandum of Transfer or Deed of Assignment stamped at the stamping office might be longer than you could anticipate.
|7. Presentation at the land office
|The Purchaser’s solicitor will prepare all the necessary documents and ensure that all the forms have been checked for compliance with the rules or regulations laid by the land office before presentation.|
|8. Completion||The SPA is completed when the full purchase price of the Property has been paid to the Vendor or the Vendor’s solicitor if he is represented.
Delivery of vacant possession should be made simultaneously with or as soon as practicable with the payment of the full purchase price.
|9. Events after completion||
To collect the original Title deed from the land office.
Both the Vendor and the Purchaser must notify the local authorities on the change of ownership. Failure to do so is an offence.
Get free quotation (for legal fees and stamp duty applicable) by filling in the form below and our property and conveyancing lawyers will send you the quotation in less than 2 working hours via WhatsApp/SMS and you will be informed on all relevant fees involved in purchasing your property in Malaysia.