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Real Estate Practice in Malaysia |
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Brief Guide of Property Practice in Malaysia
Sale & Purchase Procedure
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Sale & Purchase Procedure
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Residential
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Booking
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Completed
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Pay 2% of Purchase Price as booking deposit upon signing Letter of Offer.
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Under construction (buy from Developer)
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No booking deposit is required as ruled by the Housing Developers (Control and Licensing) Act 1996
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Signing Sale & Purchase Agreement (SPA)
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Completed
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Pay 8% of Purchase Price within 14 days from the date of acceptance of offer by the vendor.
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Under construction
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Within 14 days from the date of booking and pay the first 10% of Purchase Price.
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Financing
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Completed
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Buyer can apply financing facility before signing SPA by using the booking form
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Under construction
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Buyer can apply financing facility before signing SPA by using the booking form
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Balance Payment
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Completed
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The balance of 90% must be settled within 3+1 months after signing S&P or the date of Letter of Consent of Transfer granted by the State Authority or the Developer (the developer consent is required for property pending issuance of title) whichever is later.
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Under construction
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by progressive payment based on completion of work as certified by the architects in accordance with Schedule G of landed properties or Schedule H of strata-titled property prescribed in the Sale & Purchase Agreement standardized by the Housing Developers (Control and Licensing) Act 1996
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Handing-over of vacant possession
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Completed
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Upon settlement of the balance of 90%.
Should the buyer is urgent to move in, a short-term tenancy is required and the rental rate is on mutual agreement.
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Under construction
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2 years from the SPA date for landed property while 3 years as for strata-titled property.
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For further details on buying from housing developers, please visit http://www.kpkt.gov.my
Renting Procedure
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Tenancy Procedure
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Residential
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Business Premises
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Booking
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Pay one month’s rent as earnest deposit upon singing Letter of Offer.
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Pay one month’s rent as earnest deposit upon singing Letter of Offer.
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Term
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Subject to mutual agreement but will not be more than 3 years.
For expatriate, a special clause will state that a minimum stay of one year and early termination of agreement due to relocation of working area.
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Subject to mutual agreement but will not be more than 3 years.
Usually the landlord will require at least 2 years tenancy.
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Signing Tenancy Agreement
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In 7 days, sign Tenancy Agreement and pay 2 months rental as Security Deposit, one month rental or RM1000 as Utility Deposit, stamp duty and disbursement.
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In 7 days, sign Tenancy Agreement and pay at least 2 months rental as Security Deposit, half or one month rental as Utility Deposit, stamp duty and disbursement.
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Handing over of keys
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The tenant should be provided a checklist of the inventories upon handing over of keys.
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The rent free period or renovation period should be mutually agreed prior signing tenancy agreement.
Usually one month rent free is expected by both parties.
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Refund of deposit
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within 30 days from the expiry of the agreement, deducting any loss or damaged items, and outstanding unpaid utility bills.
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within 30 days from the expiry of the agreement, deducting any loss or damaged items, and outstanding unpaid utility bills.
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