Property Transfer and Transaction in Malaysia

A property transfer moves registered ownership from one person to another, whether or not money changes hands. Transfers between family members, transfers following a divorce, and transfers out of a deceased person's estate all go through the land office in the same way as a sale.

The main types of transfer we handle

• Transfer by way of love and affection between spouses, parents and children, and in some cases siblings
• Transfer following a divorce order or a settlement between spouses
• Transfer out of an estate to a beneficiary, once the grant of probate or letters of administration has been extracted
• Transfer between joint owners, including where one owner buys out the other
• Transfer of a share in property, rather than the whole
• Transfer into or out of a company or a trust

How a transfer works

1. A land search confirms the registered owner, the tenure, the encumbrances and any restriction in interest
2. The document supporting the transfer is prepared, such as a deed of gift, a settlement agreement or the court order
3. The transfer instrument is prepared, executed and attested
4. Any existing loan is redeemed and the charge discharged, or the chargee's consent obtained
5. State authority consent is obtained where the title requires it
6. The instrument is adjudicated, stamped and presented for registration

Tax and duty on transfers

Stamp duty is assessed on transfers, including transfers where no money changes hands, and disposals may attract real property gains tax. Exemptions and remissions exist for certain family transfers and certain categories of property and purchaser, and their scope changes over time.

We confirm the current position with you before the instrument is prepared, because duty and tax treatment often decides how a family arranges the transfer in the first place.

When you need a lawyer

• Any transfer where the property is still charged to a bank
• Any transfer where the owner has died and the estate has not been administered
• Transfers under a divorce settlement, where the order and the instrument must match
• Where a co-owner will not cooperate, or cannot be located
• Where the title carries a restriction in interest or a bumiputera condition
• Where the transferee is a foreigner or a company

Common mistakes

• Agreeing a family transfer verbally and never registering it, so the register still shows the original owner
• Assuming a will or a divorce order transfers the property by itself, when a registered instrument is still required
• Transferring a property that is charged to a bank without dealing with the loan first
• Overlooking stamp duty and real property gains tax exposure on a transfer for no consideration
• Transferring into joint names without advice on what happens on death, divorce or bankruptcy

Frequently asked questions

Can I transfer property to my child without selling it?

Yes. A transfer by way of love and affection is a recognised transfer, supported by a deed of gift and carried out by a registrable instrument. Stamp duty is still assessed, and exemptions for family transfers change from time to time, so the current position should be confirmed first.

My divorce order says the house goes to me. Is it mine now?

Not yet on the register. The order gives you the right to have the property transferred, but a transfer instrument still has to be prepared, stamped and registered before you become the registered proprietor.

The owner has died. Can the family transfer the property?

Not until the estate has been dealt with. A grant of probate or letters of administration must be extracted first, and the personal representative then transfers the property to the beneficiary.

Can I transfer only my share of a jointly owned property?

Yes, an undivided share can be transferred, subject to the terms of any charge and to any consent required. Where the property is financed, the bank's position has to be resolved first.

Does the property have to be free of a loan before transfer?

The existing charge must be discharged, or the chargee must consent and be dealt with as part of the transaction. A transfer cannot simply be registered over a subsisting charge.

Related services

• Memorandum of Transfer (MOT)
• Discharge of Charge
• Land Search
• Sale and Purchase Agreement
• 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.