Sales and Purchase Agreement is a legal contract that obligates a buyer to buy and a seller to sell a property, Governed by the Housing Development (Control and Licensing) Act 1966 where All purchases direct from housing developers must use the Schedule G (for purchases of houses) or the Schedule H (for purchases of apartment respectively of the Housing Developers. Payment of the purchase price the said Schedules G and H is by progressive payment based on completion of work as certified by the architects.
A memorandum of transfer, which is Form 14A of the National Land Code 1965, must be completed to transfer the title from the seller to the purchase. In instances where the title has not been issued, then if the purchase is from a developer, the developer will undertake in the sale and purchase agreement to transfer the title when the same is issued; and if the purchase is through a sub-sale, the transfer will be through an assignment of the sale and purchase agreement between the developer and the seller (Principal SPA) to enable the buyer to take benefit of the developer’s undertaking to transfer the title contained in Principal SPA.
Stamp duty is levied on the document of transfer (i.e. the memorandum of transfer if the title has been issued, or the deed of assignment of Principal SPA if the title has not been issued) based on the purchase price as follows:-
a. 1% on the first RM100,000.00
b. 2% on the next RM400,000.00
c. 3% on the nest RM1,500,000.00
d. 4% on the remainder
(item 32 [a] of the Stamp Act 1949)
Tannet (M) Sdn Bhd not only help you on select and purchase a suitable property but we also concern with others issues where the value customers impact the most such as legal problem. Legal, culture and communication barriers may be one of the problems when signing sales and purchase agreement & leasing agreement. Tannet (M) Sdn Bhd would be able to give you a guiding through the whole process of property purchase.