Guidebook on Registering Property in Malaysia.pdf

GUIDEBOOK on REGISTERING PROPERTY in MALAYSIA1. Payment of Chargeable Stamp DutyIn Hakimi’s case, the chargeable stamp duty can be determined from the rates specified in theStamp Act, 1949 as follows:Purchase Price Rates Chargeable DutyRM 100,000 1% RM 1,000RM 400,000 2% RM 8,000RM 80,000 3% RM 2,400Total RM 580,000 RM 11,40026The lawyer will be able to retrieve the Notice of Assessment online through STPH / STAMPS. Asample of the Notice of Assessment is attached in Appendix 6.2. Payment of Redemption SumHakimi’s bank will release the Redemption Sum to Johari’s bank, after :• exchange of Letters of Undertakings between the banks and Hakimi’s lawyer;• presentation of a Private Caveat by Hakimi’s bank at the prescribed fee; and• confirmation that Hakimi has paid the Differential Sum.Johari’s bank will then provide Hakimi’s lawyer Form 16N (Appendix 7), the original IDT and othersupporting documents.The normal duration for the IDT to be released by a bank would be 5 working days from the dateof receipt of the Redemption Sum, as illustrated in Diagram 8.PartiesProcessReceives cheque• Credits account• Sends cheque for clearanceBankAfter cheque clearance• Closes the term loan / term financing account (debit interest / profit due, earlysettlement fees, etc)• Prepares Bankers Cheque (refund excess to seller if any)• Informs seller• To forward to lawyers the following:(i) Executed Discharge of Charge Form 16N, Bankers Cheque;(ii) IDT and Duplicate Charge Form 16N and all other relevant documents, etc.Diagram 8 : Release of Original Title in Straightforward Cases