Preparation of MOT (Memorandum of Transfer) in Malaysia

A memorandum of transfer, known as the MOT, is the instrument that transfers registered ownership of land from one party to another and is registered at the land office. Until it is registered, the buyer holds contractual rights under the agreement but is not yet the registered proprietor.

What the MOT is

The MOT is a prescribed statutory instrument under the National Land Code, executed in Form 14A. It identifies the property by title particulars, names the transferor and the transferee, states the consideration, and is signed by both parties before an authorised witness.

Signing the sale and purchase agreement does not make you the owner. Ownership passes on registration of the transfer at the land registry or land office, and the register is what determines who legally owns the property.

When an MOT is used, and when it is not

An MOT is used where the property already has an individual title or a strata title issued in the seller's name. It applies to sub-sale purchases, transfers between family members, transfers following a divorce settlement, and transfers out of a deceased person's estate.

Where no individual or strata title has been issued yet, ownership is dealt with by a deed of assignment instead, and the MOT is presented later once the title is issued. Your solicitor will confirm which route applies after conducting the land search.

What we do for you

1. Conduct a land search to confirm the title particulars, the registered owner and any encumbrance
2. Prepare the transfer instrument and arrange execution and attestation
3. Submit the instrument for adjudication and attend to stamp duty
4. Apply for state authority consent to transfer where the title requires it
5. Obtain the issue document of title, and the redemption and discharge documents where a bank is involved
6. Present the instrument for registration and deliver the updated title to you

What to prepare

• A copy of the title, or the developer's sale and purchase agreement and deed of assignment where no title has been issued
• Identity documents of the transferor and the transferee
• The sale and purchase agreement, deed of gift or court order that supports the transfer
• The latest quit rent and assessment receipts
• Where a loan exists, the redemption statement and the bank's discharge documents

Common mistakes

• Treating the signed agreement as the end of the matter and never following through to registration
• Missing a restriction in interest on the title that requires state authority consent before transfer
• Underdeclaring the consideration, which invites adjudication queries and penalties
• Executing the instrument before an unauthorised witness, so it is rejected on presentation
• Failing to settle quit rent, assessment or maintenance arrears that block the documents needed for presentation

Frequently asked questions

What is the difference between the SPA and the MOT?

The sale and purchase agreement is the contract between the parties. The memorandum of transfer is the statutory instrument that changes the name on the register. The agreement creates the obligation to transfer; the MOT carries it out.

Do I need an MOT if the property has no title yet?

Not at that stage. Where no individual or strata title exists, the interest is transferred by a deed of assignment. When the title is later issued, a transfer is prepared and registered to put the property into your name.

Is stamp duty payable on the MOT?

Yes, ad valorem stamp duty is assessed on the transfer. Exemptions and remissions exist for certain transfers, including some transfers between family members and some categories of purchaser, and the scope of these changes from time to time. We confirm the current position for your transaction.

How does the bank's loan affect the transfer?

If the seller has an existing loan, the charge must be discharged before or at the same time as the transfer is registered. If the buyer is taking a loan, the buyer's charge is presented together with the transfer so the bank's security is created on registration.

Can I prepare the MOT myself?

The instrument is a prescribed form, but it must be correctly completed, properly attested, adjudicated and presented with the supporting documents, and any error is usually only discovered on rejection. In practice these are prepared by a solicitor.

Related services

• Sale and Purchase Agreement
• Property Transfer & Transaction
• Discharge of Charge
• Land Search
• Loan Agreement
• Tenancy Agreement
• Lease Agreement
• Caveat of Property
• Foreigners Buying Property
• Property Lawyer Malaysia

This page is general information about property law procedure in Peninsular Malaysia and is not legal advice for any particular situation. How a matter is handled depends on the title, the state and the facts, and Sabah and Sarawak have their own separate land legislation. Speak to a lawyer about your own circumstances.