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 180,000 2% RM 3,600Total RM 280,000 RM 4,60034The lawyer will be able to retrieve the Notice of Assessment online through STPH / STAMPS. Asample of 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 the original Deed of Receipt and Reassignment,the principle SPA, the original Security Documents and the Deed of Assignment (if subsequentsale).The normal duration for release of the above documents by a bank would be 5 working days fromthe date of receipt of the Redemption Sum as illustrated in Diagram 12.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 Deed of Receipt and Reassignment, Bankers Cheque;(ii) Principal SPA, Deed of Assignment and all otherrelevant documents, etc.Diagram 12 : Release of Original Documents in Straightforward Cases