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LBS Proudly Bags Multiple Accolades At The Starproperty Awards 2020

29 December 2020

Overwhelming Response For KITA Mekar At KITA @ Cybersouth Township’s First Single Storey Houses

8 December 2020

LBS Q3 Recorded RM336 Million Revenue Achieved RM1.1 Billion Sales To Date

30 November 2020

All About Tech

Our latest episode sees the Vox Pop team go around KL Sentral. This time we’re asking what is technology’s role in their lives and workplaces.

LBS Welcome Government’s Budget 2021 Initiatives Urges Additional Proposals To Benefit First Time Homebuyers

9 November 2020

Favourite Local Food

Have a favourite local food that you love? The Vox Pop team managed to go around KL and even our LBS Office to find out more about everyone’s best delicacies.

Blooper Episode

We know it is a tough time for everyone out there. We would like to remind all our fellow Malaysians to wear a mask when in public, sanitize your hands and practise safe social distancing whenever possible. We can get through this together.

Property Terms Glossary: Memorandum Of Transfer

What is a Memorandum of Transfer (MOT)?

A Memorandum of Transfer (MOT) is a transfer of ownership procedure of a property for the price agreed between the buyer and seller. It is used to transfer ownership of the property from the developer to buyer, or in the case of secondary market purchases, transfer ownership of the property from the seller to buyer. The property can be transferred to a family, boyfriend, girlfriend, friend or any stranger. The cost of a MOT borne by the buyer will include professional legal fees, stamp duty, disbursement fees as well as sales and service tax.


 

Components of a MOT

  1. Company letterhead
  2. List of parties involved in the transfer of property
  3. Description of and valuation of items in the transfer

 

Documents needed prior to transfer of property

a) Copies of all present and previous SPAs
b) Copies of present and previous Loan Agreement, Deed of Assignment, Deed of Receipt and Re-assignment (if any).
c) Strata Title (from the developer)
d) Current year quit rent receipt
e) Current year assessment receipt
f) Facility Agreement

 


 

Stamp duty charge on the MOT

House PriceStamp Duty Charge
First RM100, 0001%
Next RM100,001 to RM500,0002%
From RM500,001 to RM1 million3%
Subsequent amount4%

Stamp duty waived: Between husband and wife by way of love and affection

TransferorTransfereeExemption Ratee
Husband/WifeWife/Husband100%
Parent/ChildChild/Parent50%

Stamp duty exemptions

First-time homebuyers will be exempted from stamp duty on the first RM300,000 of the property price on any instrument of transfer and the loan agreement, for SPA completed between 1 January 2019 and 31 December 2020.

Process developer and buyer will sign the MOT (Form 14A) which indicates who is the owner and who is the transferor, transferee, and how much shares the transferor wants to transfer.

Conversation between Preeta and Adam (developer’s agent) discussing about a property transaction worth RM400, 000. Adam is finalising the MOT with the developer.

Adam: Hi Preeta, are all the documents in order for us to finalise the MOT?

Preeta: Yes, I have all the relevant documents ready.

Adam: I will calculate the stamp duty for the MOT.

The first RM100,000, stamp duty is 1%

RM100,000 x1% = RM1,000

From RM100,001 to RM500,000, stamp duty is 2%

RM400,000 x 2 = RM8000. So, the total Stamp Duty that I need to pay is RM9,000

Preeta: Let’s sign this MOT and complete the transaction and the property will be transferred to your name officially.

LBS Calls For Greater Initiatives To Empower Home Buyers

5 October 2020