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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.

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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

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Documents needed prior to transfer of property

1. a) Copies of all present and previous SPAs
2. b) Copies of present and previous Loan Agreement, Deed of Assignment, Deed of Receipt

and Re-assignment (if any).

1. c) Strata Title (from the developer)
2. d) Current year quit rent receipt
3. e) Current year assessment receipt
4. f) Facility Agreement

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  Stamp duty charge on the MOT

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

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.

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So you’ve said yes to owning a house. You’re ready to sign all the necessary documents, but you will stumble upon new property terms that you've not heard before – such as MOT. ⁣ ⁣ So what is MOT? 🤔⁣ ⁣ #LBSHomes #AGoodStartWithLBS⁣

A post shared by LBS Bina Group (@lbsbinagroup) on Oct 8, 2019 at 11:01pm PDT

 

 

 

 

 

 

 

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.