Payment Schedule for Under Construction Property

All properties under construction have to be subjected to the provision of Housing Development Act. 

This is Act being enforced to protect all Malaysian buyers as well as foreigners.

A typical payment installment schedule for purchase the under construction property in Malaysia as following:-

1.	Immediately upon the signing the Purchase Agreement – 1st payment balance 10% after deducting the booking fee.	10%
2.	Within 21 working days after receipt by the Purchaser of the Vendor’s written notice of the completion of:-
	a.) The work below ground level including piling and foundation of the said Building comprising the said parcel.	10%
	b.) The reinforced concreate framework and floor slab of the said Parcel.	15%
	c.) The walls of the said Parcel with door and window frames placed in position.	10%
	d.) The roofing / ceiling, electrical wiring and internal telephone trunking and cabling to the said Parcel.	10%
	e.) The internal and external plastering of the said Parcel.	10%
	f .) The sewerage works serving the said Building.	5%
	g.) The drains serving the said Building.	5%
	h.) The road serving the said Building.	5%
3.	On the date Purchaser takes vacant possession with water and electricity supply ready for connection.	12.5%
4.	Within 21 working days, Authority of the application for subdivision of the said Building.	2.5%
5.	On the date the Purchaser takes vacant possession of the said Parcel as in item 3 and to be  held by the Vendor’s solicitor as stakeholder for payment to the Vendor as follow:-
	a.) At the expiry of 6 months after the date the purchaser takes vacant possession of the said Parcel.	2.5%
	b.) At the expiry of 18 months after the date the Purchaser takes vacant possession of the said Parcel.	2.5%
Under the Housing Development Act of Malaysia, the construction schedule is 36 months from the date of signing Purchase Agreement.

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Legal Fee

Everyone would like to buy a property, either for own stay or for an investment. However, do you know that on top of the property price, you have to pay a substantial amount of money for legal or lawyer fees and stamp duty?

Legal fees is payable to the appointed lawyer who will prepare Sale & Purchase Agreement between purchaser and vendor. On other hand, Stamp Duty which also known as Memorandum Of Transfer (MOT) is payable to the government & collected by Lawyer on behalf of the government.

On top of that, there are 5% government tax and approximately between RM500 to RM1,000 disbursement cost.

Disbursement cost covers the following:-

1. Stamping of SPA (RM10 per copy x 4)
2. Bankruptcy/ Winding up search
3. Company search (if applicable)
4. Land search (before preparation of the SPA & prior to the filing of the Form 14A at the Land Office)
5. Registration of Transfer at Land Office
6. Affirmation on the Statutory Declaration to request for the 50% waiver on the stamp duty on the transfer/ on the assignment.
7. Stamping on the Statutory Declaration to request for the 50% waiver on the stamp duty on the transfer/ on the assignment
8. Transportation
9. Printing/ Facsimile/ Telephone/ Photocopy charges
10. Miscellaneous charges

=> Please click here for Online Computation of Legal Fee

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What is Stamp Duty and How to Calculate?

A purchaser of a property has to stamp duty to the government when he buys a property.

How to calculate the Stamp Duty Payable?

The stamp duty chargeable on the Sale and Purchase Agreement is RM10 each.

The stamp duty chargeable on the Memorandum of Transfer is calculated based on the purchase price as follow:-

1. For the first RM100,000, the stamp duty payable is 1%
2. For the next RM400,000, the stamp duty payable is 2%
3. For any sum exceeding RM500,000, the stamp duty payable if 3%

Penalty on document not stamped within time

If a document is not stamped within the timeframe, the purchaser will have to pay, in additional to the stamp duty payable, a penalty and the rates of the penalty are as follow:-

1. RM25 or 5% of the duty, whichever shall be greater, if the same is stamped within three months after the time of stamping.
2. RM50 or 10% of the duty, whichever shall be greater, if the same is stamped later than three months but not later than six months after the time of stamping;
3. RM100 or 20% of the duty, whichever shall be greater, if the same is stamped later than six months after the time of stamping.

* The purchaser may appeal to the Collector of Stamp Duties for the reduction of penalty.

Consequences of a document not duty stamped
A document which is not stamped or insufficiently stamped is not void or unenforceable for that reason alone. However, such document may be rejected as evidence if it is required to be produced before the Court. In that event, the party who wishes to produce the unstamped or insufficiently stamped document will have to pay the stamp duty payable and penalty before such document can be received as evidence.

=> Please click here for Online Computation of Stamp Duty.

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