THE LEGAL PROCESS

AFTER SPA
FLOW/PROCESS FOR SUB-SALE CASE
 REAL PROPERTY GAINS TAX (RPGT)

 RPGT is chargeable upon profit made from the sale of your land or real
property, where the resale price is higher than the purchase price. 
 RPGT is imposed on disposers in the year of assessment where the disposal
transaction takes place.
 Disposer, whether resident in Malaysia or not, is taxable on gain accrued on
the disposal of chargeable assets situated in Malaysia. Disposer includes
individual, company, partnership, organisation, trustees and other chargeable
persons.
 RPGT Rates Classification
EXEMPTION (Tax Relief)
 Malaysian citizens or permanent residents are allowed exemption on profits
from the disposal of a private residence once in a lifetime.

 disposal of low cost, medium low and affordable residential homes of

RM200,000 and below, in the 6th and subsequent years. 

 transfer by way of gift between husband and wife, parent and child, or
grandparent and grandchild, provided the donor is a citizen.
 STAMP DUTY

 Stamp duty is a essentially a fee on legal documents such as the

instrument of transfer and loan agreement when purchase a house.
 Categories of duty:
1. Ad Valorem Duties are variable costs based on the value of a transaction
that legal documents represent. These include taxes such as those based on
the value of a property transfer or loan agreement.
2. Fixed Duties are charged at a set price, and include stamps for individual
policies or copies.
Stamp Duty on Memorandum of Transfer
EXEMPTION OF STAMP DUTY
1. First Home Buyer
 Full stamp duty exemption will be given to both instrument of transfer and
loan agreement for the purchase of a first home worth not more than
RM500,000. (P.U.(A) 53/2021)
2. Transfer by way of Love & Affection
 DOCUMENT OF TITLE
 A land title is a document that details the owner of a land or property. 
 prove that you are the rightful owner of a property or a piece of land.

TYPE OF LAND TITLES

 MASTER TITLE
 INDIVIDUAL TITLE
 STRATA TITLE
MASTER TITLE INDIVIDUAL TITLE
STRATA TITLE
TYPE OF OWNERSHIP
TENURE OF THE PROPERTY OF TITLE
 The tenure of a Property title can either be:
a) Freehold: belongs to the owner (the purchaser) indefinitely.; 
b) Leasehold: The land belongs to the state and the NLC under section
76(a) provides for a maximum period of lease not exceeding 99
years. At the expiry of the term, (unless the lease is renewed), the
land reverts to the State Government.
LEASEHOLD VS FREEHOLD TITLE
 RESTRICTION OF INTEREST IN TITLE
(CONSENT)
 Restriction of interest is defined under section 5 of NLC which means that it is the limitations
that are imposed by the state authority on the powers which are conferred to the land
proprietor.
 The most common restriction in interest is “Tanah ini tidak boleh dipindahmilik, dipajak atau
digadai selain mendapat kebenaran Pihak Berkuasa Negeri.”, which means the land cannot be
transferred, leased or charged unless the consent from the State Authority is obtained.
 prior to the transfer of the land from the owner to the Purchaser, prior to the charge of the land
by the Purchaser in favour of the Purchaser’s Financier, or prior to the lease of the land from
the owner to the lessee, the State Authority’s Consent has to be obtained.
 Each land office has its own requirements in connection with the application for State Consent.
 Types of Consent:
Low Cost / Low Medium Cost
Bumiputera
Foreigner