Strata title is the only legal documentation that prove you owned the property.So it is a must.Without strata title, can cause a lot of trouble in the future, especially involving transfer of the property ownership.Without strata title, ownership of the property cannot be transferred.The property market in Malaysia has gained quite a lot of interest, especially over the past 3 years when the mortgage loan interest dipped to historical low.If you were to buy a property for own stay or for investment, you should be well prepared for the cost involved.The typical cost
consists of:
A. One time cost
1. The booking fee, down payment and subsequent unfinanced payment of the property (normally about 10%-20% of the property price)2. Lawyer fee for Sales and Purchase Agreement (calculated based on the property price):First RM150k = 1% (or minimum RM300, whichever higher)Subsequent up to RM1 million = 0.7%Subsequent up to RM3 million = 0.6%Subsequent up to RM5 million = 0.5%Subsequent up to RM7.5 million = 0.4%Above RM7.5 million = negotiable3. Miscellaneous fee for preparation of Sales and Purchase Agreement = at least a few hundreds4. 6% government tax on total lawyer fee for Sales and Purchase Agreement5. Stamp Duty of Sales and Purchase Agreement (calculated based on the property price):First RM100k = 1%Subsequent up to RM500k = 2%Subsequently onwards = 3%6. Lawyer fee for Loan Facility Agreement (calculated based on mortgaged amount):First RM150k = 1% (or minimum RM300, whichever higher)Subsequent up to RM1 million = 0.7%Subsequent up to RM3 million = 0.6%Subsequent up to RM5 million = 0.5%Subsequent up to RM7.5 million = 0.4%Above RM7.5 million = negotiable7. Stamp Duty of Loan Facility Agreement (calculated based on mortgaged amount) = 0.5%8. Miscellaneous fee for preparation of Loan Facility Agreement = at least a few hundreds9. 6% government tax on total lawyer fee for Loan Facility Agreement10. Land/Strata Ownership Title Transfer = at least a few hundreds + 6% government tax on legal fee11. Stamp Duty of Land/Strata Ownership Title Transfer (calculated based on the property price):First RM100k = RM1 for every RM100 or fractional part of RM100Subsequent up to RM500k = RM2 for every RM100 or fractional part of RM100Above RM500k = RM3 for every RM100 or fractional part of RM10012. Consent to Charge (for leasehold property) = at least a few hundreds + 6% government tax on legal fee13. Mortgage Reducing Term Assurance (MRTA, optional) = a few thousands14. Deposit for water and electricity = at least a few hundreds 15. Deposit for telephone, Internet service, satellite/cable TV (optional) = at least a few hundreds 16. Renovation and moving cost = depends on you, easily more than RM10kB. Recurring cost1. Quit rent (yearly) = around RM502. Assessment tax (yearly) = a few hundreds3. Fire insurance (yearly) = a few hundreds4. Mortgage Level Term Assurance (MLTA, yearly, optional) = a few thousands5. Housing loan repayment (monthly) = at least a few hundreds6. Severage treatment fee (half yearly) = RM487. Water, electricity, telephone, Internet, satellite/cable TV, etc. = depends on usage8. Cooking gas = depends on usage9. Security fee (for gated & guarded community or apartment/condominium) = depends10. Maintenance fee and sinking fund (for apartment/condominium) = depends11. Car park rental (optional for certain apartment/condominium) = depends12. Pest and termite control service (yearly, optional) = at least a few hundreds
August 30, 2013, 0:20
ADVISORY: Transfer of strata title — should you pay?
FEE FACTS: For years, developers and liquidators are charging fees to transfer strata title and to consent to ownership transfer. Is it legal?
Andrew K@Petaling Jaya: Q1: I am the house buyer of a housing project developed by a company which is being liquidated and the court has appointed a liquidator to take over the company’s affairs. The liquidator then called for a Purchasers Verification exercise and wanted to collect 2% of the purchase price as administrative fee in transferring the strata title. Is it lawful for the liquidator to collect administrative fee to transfer the strata title? Further, when the current house buyer wants to dispose his house to another party, the Liquidator is asking for another administrative fee upon his execution of the letter of confirmation and consent for deed of assignment. Is this lawful? A1: Pursuant to section 232(2) and (3) of the Companies Act 1965, Liquidators are allowed to collect fees permitted by the Court or a committee of inspection or with agreement with its creditors. In this context, ‘fees’ must be reasonable and acceptable under the circumstances.House buyers who feel aggrieved by the ‘conduct of affairs’ by their Liquidators may lodge an official complaint to the Government Official Receiver pursuant to s 229 of the Companies Act for their due investigation. Details of the Official Receiver are as follows: Malaysia Department of InsolvencyAras 2 & 3, Bangunan Hal Ehwal Undang-Undang, Presint 3, Pusat Pentadbiran Kerajaan Persekutuan 62692, Wilayah Persekutuan Putrajaya, MalaysiaTalian Am: 03 88851000Faks: 03 88851303Website: www.insolvensi.gov.my The Government Official Receiver, where a private liquidator has not been appointed, currently charges a nominal fee of RM500 only. Q2: I heard some developers charging house owners RM500 to RM700 as administrative fee to transfer the strata title to the owners upon issuance of the strata title. How much fee is acceptable or reasonable to be collected by the liquidator or developer in transferring the strata title or in consenting to the transfer of house ownership? A2: Our view is that the fees chargeable by the developer depend on the terms and conditions stated in the Sale and Purchase Agreement (SPA) in the case of commercial or non-regulated properties, for example in sub-sale transactions. In the case of the statutory Sale and Purchase Agreement (SPA) regulated under the Housing Development (Control & Licensing) Regulations, it is stipulated in the SPA that the developer should execute the Memorandum of Transfer within 21 days from issuance of the strata title. There is no mention of any fee payable as it is part and parcel of the developer’s obligation and thus no extra fees should be chargeable. However, in instances where liquidators are appointed, the above answer in A1 is applicable. For the benefit of the readers, s 229 of the Companies Act is hereby reproduced: Section 229. Control of unofficial liquidators by Official Receiver (1) Where in the winding up of a company by the Court a person other than the Official Receiver is the liquidator, the Official Receiver shall take cognizance of his conduct and if the liquidator does not faithfully perform his duties and duly observe all the requirements imposed on him by any written law or otherwise with respect to the performance imposed on him or if any complaint is made to the Official Receiver by any creditor or contributory in regards thereto, the Official Receiver shall inquire into the manner, and take such action thereon as he may think expedient. (2) The Official Receiver may at any time require any such liquidator of a company which is being wound up by the Court to answer any inquiry in relation to any winding up in which he is engaged, and may, if the Official Receiver thinks fit, apply to the Court to examine him or any other person on oath concerning the winding up. (3) The Official Receiver may also direct a local investigation to be made of the books and vouchers of such liquidator. By National House Buyers Association of Malaysia (HBA) DISCLAIMER: The answers are solely the experts’ opinions and act as a guide only. NST RED will not be liable for any losses arising out of reliance on the advice here. 1
PROPERTY TAX
Assessment Tax on Residential Property
The assessment tax is a local tax based on the annual rental value of the property, as assessed by the local authorities. It is generally levied at a flat rate of 6% for residential properties and payable in two installments.
Quit Rent
The quit rent is a local tax levied on all landed properties, payable annually at a rate of 1 sen (US$0.003) to 2 sen (US$0.007) per square foot, wherein MYR1 is equal to 100 sen (cents). The quit rent liability is generally estimated to be less than MYR100 (US$32) per year.
CORPORATE TAXATION
INCOME TAX
Income and capital gains earned by companies are subject to corporate income tax at a flat rate of 25%. Income-generating expenses are deductible when calculating taxable income.
Property Taxes in Malaysia
Information about the property taxes - assessment tax, quit rent, stamp duty and real property gains tax paid by home owners and tenants in Malaysia...
Property Tax
Property tax is payable on all property including shops, factories and agricultural land. Local jurisdictions are responsible for collecting property tax, which varies depending on the jurisdiction.Assessment tax: A local property tax, which is based on the annual rental value of a property. It is determined by local authorities, generally at a rate of six percent for residential properties and is payable in two instalments annually.Quit Rent: A local property tax, which applies to all properties and is calculated on an annual rate of one to two sen per square foot. Quit rent liability is generally less than RM 100,00 annually.
Real Property Gains Tax
Anyone know the legal fees & stamping fees for transfer the strata title?1.)How to calculate the legal fees & stamping fees for S&P lawyer to execute a transfer the strata title?2.)How to calculate the legal fees & stamping fees for Loan agreement lawyer to execute a transfer the strata title?3.)Should we pay againt the stamping fees for Loan agreement lawyer? (When 1st loan agreement has drawing, the stamping fees has been charges & paid)
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consists of:
A. One time cost
1. The booking fee, down payment and subsequent unfinanced payment of the property (normally about 10%-20% of the property price)2. Lawyer fee for Sales and Purchase Agreement (calculated based on the property price):First RM150k = 1% (or minimum RM300, whichever higher)Subsequent up to RM1 million = 0.7%Subsequent up to RM3 million = 0.6%Subsequent up to RM5 million = 0.5%Subsequent up to RM7.5 million = 0.4%Above RM7.5 million = negotiable3. Miscellaneous fee for preparation of Sales and Purchase Agreement = at least a few hundreds4. 6% government tax on total lawyer fee for Sales and Purchase Agreement5. Stamp Duty of Sales and Purchase Agreement (calculated based on the property price):First RM100k = 1%Subsequent up to RM500k = 2%Subsequently onwards = 3%6. Lawyer fee for Loan Facility Agreement (calculated based on mortgaged amount):First RM150k = 1% (or minimum RM300, whichever higher)Subsequent up to RM1 million = 0.7%Subsequent up to RM3 million = 0.6%Subsequent up to RM5 million = 0.5%Subsequent up to RM7.5 million = 0.4%Above RM7.5 million = negotiable7. Stamp Duty of Loan Facility Agreement (calculated based on mortgaged amount) = 0.5%8. Miscellaneous fee for preparation of Loan Facility Agreement = at least a few hundreds9. 6% government tax on total lawyer fee for Loan Facility Agreement10. Land/Strata Ownership Title Transfer = at least a few hundreds + 6% government tax on legal fee11. Stamp Duty of Land/Strata Ownership Title Transfer (calculated based on the property price):First RM100k = RM1 for every RM100 or fractional part of RM100Subsequent up to RM500k = RM2 for every RM100 or fractional part of RM100Above RM500k = RM3 for every RM100 or fractional part of RM10012. Consent to Charge (for leasehold property) = at least a few hundreds + 6% government tax on legal fee13. Mortgage Reducing Term Assurance (MRTA, optional) = a few thousands14. Deposit for water and electricity = at least a few hundreds 15. Deposit for telephone, Internet service, satellite/cable TV (optional) = at least a few hundreds 16. Renovation and moving cost = depends on you, easily more than RM10kB. Recurring cost1. Quit rent (yearly) = around RM502. Assessment tax (yearly) = a few hundreds3. Fire insurance (yearly) = a few hundreds4. Mortgage Level Term Assurance (MLTA, yearly, optional) = a few thousands5. Housing loan repayment (monthly) = at least a few hundreds6. Severage treatment fee (half yearly) = RM487. Water, electricity, telephone, Internet, satellite/cable TV, etc. = depends on usage8. Cooking gas = depends on usage9. Security fee (for gated & guarded community or apartment/condominium) = depends10. Maintenance fee and sinking fund (for apartment/condominium) = depends11. Car park rental (optional for certain apartment/condominium) = depends12. Pest and termite control service (yearly, optional) = at least a few hundreds
August 30, 2013, 0:20
ADVISORY: Transfer of strata title — should you pay?
FEE FACTS: For years, developers and liquidators are charging fees to transfer strata title and to consent to ownership transfer. Is it legal?
Andrew K@Petaling Jaya: Q1: I am the house buyer of a housing project developed by a company which is being liquidated and the court has appointed a liquidator to take over the company’s affairs. The liquidator then called for a Purchasers Verification exercise and wanted to collect 2% of the purchase price as administrative fee in transferring the strata title. Is it lawful for the liquidator to collect administrative fee to transfer the strata title? Further, when the current house buyer wants to dispose his house to another party, the Liquidator is asking for another administrative fee upon his execution of the letter of confirmation and consent for deed of assignment. Is this lawful? A1: Pursuant to section 232(2) and (3) of the Companies Act 1965, Liquidators are allowed to collect fees permitted by the Court or a committee of inspection or with agreement with its creditors. In this context, ‘fees’ must be reasonable and acceptable under the circumstances.House buyers who feel aggrieved by the ‘conduct of affairs’ by their Liquidators may lodge an official complaint to the Government Official Receiver pursuant to s 229 of the Companies Act for their due investigation. Details of the Official Receiver are as follows: Malaysia Department of InsolvencyAras 2 & 3, Bangunan Hal Ehwal Undang-Undang, Presint 3, Pusat Pentadbiran Kerajaan Persekutuan 62692, Wilayah Persekutuan Putrajaya, MalaysiaTalian Am: 03 88851000Faks: 03 88851303Website: www.insolvensi.gov.my The Government Official Receiver, where a private liquidator has not been appointed, currently charges a nominal fee of RM500 only. Q2: I heard some developers charging house owners RM500 to RM700 as administrative fee to transfer the strata title to the owners upon issuance of the strata title. How much fee is acceptable or reasonable to be collected by the liquidator or developer in transferring the strata title or in consenting to the transfer of house ownership? A2: Our view is that the fees chargeable by the developer depend on the terms and conditions stated in the Sale and Purchase Agreement (SPA) in the case of commercial or non-regulated properties, for example in sub-sale transactions. In the case of the statutory Sale and Purchase Agreement (SPA) regulated under the Housing Development (Control & Licensing) Regulations, it is stipulated in the SPA that the developer should execute the Memorandum of Transfer within 21 days from issuance of the strata title. There is no mention of any fee payable as it is part and parcel of the developer’s obligation and thus no extra fees should be chargeable. However, in instances where liquidators are appointed, the above answer in A1 is applicable. For the benefit of the readers, s 229 of the Companies Act is hereby reproduced: Section 229. Control of unofficial liquidators by Official Receiver (1) Where in the winding up of a company by the Court a person other than the Official Receiver is the liquidator, the Official Receiver shall take cognizance of his conduct and if the liquidator does not faithfully perform his duties and duly observe all the requirements imposed on him by any written law or otherwise with respect to the performance imposed on him or if any complaint is made to the Official Receiver by any creditor or contributory in regards thereto, the Official Receiver shall inquire into the manner, and take such action thereon as he may think expedient. (2) The Official Receiver may at any time require any such liquidator of a company which is being wound up by the Court to answer any inquiry in relation to any winding up in which he is engaged, and may, if the Official Receiver thinks fit, apply to the Court to examine him or any other person on oath concerning the winding up. (3) The Official Receiver may also direct a local investigation to be made of the books and vouchers of such liquidator. By National House Buyers Association of Malaysia (HBA) DISCLAIMER: The answers are solely the experts’ opinions and act as a guide only. NST RED will not be liable for any losses arising out of reliance on the advice here. 1
PROPERTY TAX
Assessment Tax on Residential Property
The assessment tax is a local tax based on the annual rental value of the property, as assessed by the local authorities. It is generally levied at a flat rate of 6% for residential properties and payable in two installments.
Quit Rent
The quit rent is a local tax levied on all landed properties, payable annually at a rate of 1 sen (US$0.003) to 2 sen (US$0.007) per square foot, wherein MYR1 is equal to 100 sen (cents). The quit rent liability is generally estimated to be less than MYR100 (US$32) per year.
CORPORATE TAXATION
INCOME TAX
Income and capital gains earned by companies are subject to corporate income tax at a flat rate of 25%. Income-generating expenses are deductible when calculating taxable income.
Property Taxes in Malaysia
Information about the property taxes - assessment tax, quit rent, stamp duty and real property gains tax paid by home owners and tenants in Malaysia...
Property Tax
Property tax is payable on all property including shops, factories and agricultural land. Local jurisdictions are responsible for collecting property tax, which varies depending on the jurisdiction.Assessment tax: A local property tax, which is based on the annual rental value of a property. It is determined by local authorities, generally at a rate of six percent for residential properties and is payable in two instalments annually.Quit Rent: A local property tax, which applies to all properties and is calculated on an annual rate of one to two sen per square foot. Quit rent liability is generally less than RM 100,00 annually.
Real Property Gains Tax
Anyone know the legal fees & stamping fees for transfer the strata title?1.)How to calculate the legal fees & stamping fees for S&P lawyer to execute a transfer the strata title?2.)How to calculate the legal fees & stamping fees for Loan agreement lawyer to execute a transfer the strata title?3.)Should we pay againt the stamping fees for Loan agreement lawyer? (When 1st loan agreement has drawing, the stamping fees has been charges & paid)
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