Purchase Terms
1. Platform's Role in Property Transactions
Hartanah Bumiputera is an advertising and information platform only. This platform:
- Not an estate agent or property broker representing any party in a transaction.
- Not a party to any sale and purchase contract, rent-to-own agreement, or any property agreement.
- Does not verify the accuracy, validity, or legal status of listed properties.
- Does not guarantee that the property is free from encumbrances, caveats, or third-party claims.
Buyers are fully responsible for conducting due diligence before making any purchase decision.
2. Property Purchase Process in Malaysia
3. Costs Related to Property Purchase
3.1 Transfer of Ownership Stamp Duty (Stamp Act 1949)
| Property Value | Stamp Duty Rate |
|---|---|
| First RM 100,000 | 1% |
| RM 100,001 – RM 500,000 | 2% |
| RM 500,001 – RM 1,000,000 | 3% |
| More than RM 1,000,000 | 4% |
First-time residential home buyers are eligible for full stamp duty exemption for properties valued at RM 500,000 and below (subject to terms of current government programme).
3.2 Loan Agreement Stamp Duty
0.5% of the approved loan amount. Example: Loan RM 400,000 → Stamp Duty RM 2,000.
3.3 Legal Fees (Solicitor's Scale)
| Property Value | Fee Rate |
|---|---|
| First RM 500,000 | 1.0% |
| RM 500,001 – RM 7,500,000 | 0.8% |
| Exceeding RM 7,500,000 | Negotiable (min 0.5%) |
Legal fees typically cover the preparation and verification of SPA, loan, and transfer of ownership. Separate fees apply for bank solicitors.
3.4 Other Costs
- Valuation Fee: RM 500 – RM 2,000 (depending on property value).
- Charge Registration of Charge (Mortgage): RM 200 – RM 500.
- Real Property Gains Tax (RPGT): Borne by the SELLER — 0%–30% depending on ownership period and residency status.
- Real Property Gains Tax: Not applicable to buyers.
- Maintenance Charges: For strata property — typically 2–3 months refundable deposit.
4. Malay Reserved Land and Bumiputera Lot
4.1 Malay Reserved Land
Governed by the respective state Malay Reserved Land Enactments (e.g., Selangor Malay Reservation Enactment 1938). Malay Reserved Land:
- May only be owned by Malays as defined in the Federal Constitution.
- Transfer to non-Malay requires State Authority (PBN) approval and may involve release from Malay Reserved status.
- Unapproved transfer is legally invalid and may be cancelled.
4.2 Bumiputera Lot
Bumiputera quota in housing development projects under Act 118:
- Bumiputera lots must be sold to Bumiputera buyers at prices set by the State Government (usually 5%–15% discount from market price).
- Developers must obtain state government approval for Bumiputera quota release before selling to non-Bumiputera.
- Bumiputera Buyers cannot sell Bumiputera Lots to non-Bumiputera within the stipulated period (usually 10 years) without approval.
4.3 Buyer Responsibilities
Buyer is responsible for verifying property status with the relevant Land Office and District Office. The platform bears no liability for any misrepresentation regarding land status by the seller or agent.
5. Properties Under Development (New Development)
Purchase of property under development (off-plan) is governed by the Housing Development (Control and Licensing) Act 1966:
- Developers must hold a valid developer's licence and advertising and sales permit (AP&J).
- All development payments must be kept in a Holding Account (Housing Development Account) and cannot be used by the developer before certain conditions are met.
- Sale and Purchase Agreement (SPA) must use the prescribed standard form under Act 118 — Schedule G (landed residential) or Schedule H (stratified property).
- The developer is responsible for completing the development within the period stipulated in the SPA (usually 24–36 months).
- Late handover beyond the stipulated period may result in Liquidated Ascertained Damages (LAD) payable by the developer to the buyer.
6. Purchase via Public Auction
For properties sold via public auction (by bank or High Court):
- Buyers must pay a deposit of 10% of the reserve price during the auction.
- Balance payment must be settled within 120 days (landed property) or 90 days (strata property) from auction date.
- Property sold in "as-is" condition — buyer bears all repair costs, outstanding taxes, and overdue maintenance charges.
- Buyers must conduct their own due diligence as no guarantee is provided by the courts or banks regarding the physical condition or legal status of the property.
7. Estimate and Calculator Disclaimer
All estimates provided by the Platform (mortgage, stamp duty, legal fees) are based on current standard rates and do not take into account:
- Individual taxpayer status, government policy changes, or special exemption programmes.
- Specific loan terms or current interest rates offered by particular financial institutions.
- Additional costs that may arise such as supplementary tax, fines, or unexpected charges.
- Changes in law or policy that take effect after the Platform update date.
This estimate cannot be used as a basis for final financial planning. Please obtain formal quotations from your solicitor, tax valuer, and financial institution.
8. Buyer Protection
If you suspect fraud related to property transactions, you may lodge a complaint to:
- PDRM (Cyber): cybercrime.rmp.gov.my
- BOVAEA: www.bovaea.gov.my (agent misconduct)
- Homebuyers Tribunal: www.tribunal.gov.my (disputes with developer)
- Valuation and Property Services Department (JPPH): www.jpph.gov.my (transaction price information)
- Inland Revenue Board (IRB): www.hasil.gov.my (RPGT)
9. Governing Law
These Purchase Terms are governed by Malaysian law. Key legislation relating to property purchases in Malaysia includes:
- National Land Code 1965
- Housing Development (Control and Licensing) Act 1966
- Stamp Act 1949
- Contracts Act 1950
- Valuers, Appraisers, Estate Agents and Property Managers Act 1981
- Malay Reserved Land Enactment (respective state)
- Real Property Gains Tax Act 1976
Contact us: [email protected] | Phone: +60 11-5458 3515 | Office hours: Monday–Friday, 9 am – 6 pm
Purchase Terms
1. The Platform's Role in Property Transactions
Hartanah Bumiputera is an advertising and information platform only. The Platform:
- Is not a property agent or broker representing any party in a transaction.
- Is not a party to any sale and purchase contract, lease-purchase agreement, or any property agreement.
- Does not verify the accuracy, validity, or legal status of listed properties.
- Does not warrant that a property is free of encumbrances, caveats, or third-party claims.
Buyers are solely responsible for conducting due diligence before making a purchase decision.
2. The Property Purchase Process in Malaysia
3. Costs Associated with Purchasing Property
3.1 Transfer Stamp Duty (Stamp Act 1949)
| Property Value | Stamp Duty Rate |
|---|---|
| First RM 100,000 | 1% |
| RM 100,001 – RM 500,000 | 2% |
| RM 500,001 – RM 1,000,000 | 3% |
| Above RM 1,000,000 | 4% |
First-time residential home buyers may be eligible for full stamp duty exemption for properties priced at RM 500,000 and below (subject to the terms of the prevailing government programme).
3.2 Loan Agreement Stamp Duty
0.5% of the approved loan amount. Example: A loan of RM 400,000 → Stamp duty of RM 2,000.
3.3 Legal Fees (Solicitor's Scale)
| Property Value | Fee Rate |
|---|---|
| First RM 500,000 | 1.0% |
| RM 500,001 – RM 7,500,000 | 0.8% |
| Above RM 7,500,000 | Negotiable (min 0.5%) |
Legal fees usually cover preparation and verification of the SPA, loan documentation, and transfer of ownership. Separate fees apply for the bank's lawyer.
3.4 Other Costs
- Valuation Fee: RM 500 – RM 2,000 (depending on property value).
- Charge (Mortgage) Registration Fee: RM 200 – RM 500.
- Real Property Gains Tax (RPGT): Borne by the SELLER — 0%–30% depending on holding period and residency status.
- Real Property Acquisition Tax: Not applicable to buyers.
- Maintenance Charges: For strata property — typically a refundable deposit of 2–3 months.
4. Malay Reservation Property and Bumiputera Lots
4.1 Malay Reservation Land
Governed by each state's Malay Reservation Enactment (e.g. the Selangor Malay Reservation Enactment 1938). Malay Reservation land:
- May only be owned by Malays as defined in the Federal Constitution.
- Transfer to non-Malays requires State Authority (PBN) approval and may involve release from Malay Reservation status.
- Unapproved transfers are legally invalid and may be voided.
4.2 Bumiputera Lots
The Bumiputera quota in housing development projects under Act 118:
- Bumiputera lots must be sold to Bumiputera buyers at the price set by the State Government (typically a discount of 5%–15% off market price).
- Developers must obtain Bumiputera quota release approval from the State Government before selling to non-Bumiputera buyers.
- Bumiputera buyers may not sell a Bumiputera lot to a non-Bumiputera within the prescribed period (typically 10 years) without approval.
4.3 Buyer's Responsibility
Buyers are responsible for verifying property status with the relevant Land Office and District Office. The Platform bears no liability for any misrepresentation of land status by a seller or agent.
5. Off-Plan Property (New Development)
Purchasing off-plan property is governed by the Housing Development (Control and Licensing) Act 1966:
- Developers must hold a valid developer's licence and advertising and sale permit (AP&J).
- All development payments must be held in a Housing Development Account and may not be used by the developer until certain conditions are met.
- The Sales and Purchase Agreement (SPA) must use the standard form prescribed under Act 118 — Schedule G (landed residential property) or Schedule H (strata property).
- The developer is responsible for completing the development within the period stated in the SPA (typically 24–36 months).
- Late delivery beyond the prescribed period may result in Liquidated Ascertained Damages (LAD) payable by the developer to the buyer.
6. Purchase via Public Auction
For properties sold via public auction (by a bank or the High Court):
- The buyer must pay a deposit of 10% of the initial bid price at the auction.
- The balance must be settled within 120 days (landed property) or 90 days (strata property) from the auction date.
- Properties are sold on an "as-is" basis — the buyer bears all repair costs, outstanding tax arrears, and unpaid maintenance charges.
- The buyer must conduct their own due diligence, as no warranty is given by the court or bank regarding the physical condition or legal status of the property.
7. Disclaimer for Estimates and Calculators
All estimates provided by the Platform (mortgage, stamp duty, legal costs) are based on current standard rates and do not take into account:
- Individual taxpayer status, changes in government policy, or special exemption programmes.
- Specific loan terms or current interest rates offered by particular financial institutions.
- Additional costs that may arise, such as additional taxes, penalties, or unforeseen charges.
- Changes in law or policy taking effect after the Platform's last update date.
These estimates must not be used as a basis for final financial planning. Please obtain a formal quotation from your lawyer, tax assessor, and financial institution.
8. Buyer Protection
If you suspect fraud relating to a property transaction, you may lodge a complaint with:
- PDRM (Cyber): cybercrime.rmp.gov.my
- BOVAEA: www.bovaea.gov.my (agent misconduct)
- Homebuyers' Tribunal: www.tribunal.gov.my (disputes with developers)
- Valuation and Property Services Department (JPPH): www.jpph.gov.my (transaction price information)
- Inland Revenue Board (LHDN): www.hasil.gov.my (RPGT)
9. Governing Law
These Purchase Terms are governed by the laws of Malaysia. The principal laws relevant to property purchase in Malaysia include:
- National Land Code 1965
- Housing Development (Control and Licensing) Act 1966
- Stamp Act 1949
- Contracts Act 1950
- Valuers, Appraisers, Estate Agents and Property Managers Act 1981
- Malay Reservation Enactment (respective states)
- Real Property Gains Tax Act 1976
Contact us: [email protected] | Phone: +60 11-5458 3515 | Office hours: Monday–Friday, 9am – 6pm
