Buying Property in Malaysia: What Your Conveyancing Lawyer Actually Does
Everything you need to know before hiring a conveyancing lawyer in Malaysia — step-by-step process, SRO 2023 fees, state differences, and common pitfalls
Most people come to us after they have already signed something. The offer letter. Maybe the SPA. Then they start asking questions they should have asked earlier.
What does this clause mean? What fees are coming? Why is it taking so long?
This page is for you to read every process of conveyancing in Malaysia before it happens.
What does a conveyancing lawyer actually do?
When you buy property in Malaysia, two things must happen before it is legally yours.
First, the Sale and Purchase Agreement (SPA) has to be properly prepared and signed. Most buyers know this part.
Second, your name has to be registered on the land title at the land office. Most buyers do not consider this aspect, but this is what actually makes you the registered owner of the property.
Until that second step is completed, you are not the registered owner. It doesn’t matter if you have paid in full and collected the keys. Under Malaysia’s land law (National Land Code 1965), the land office records are conclusive proof of property ownership.
Your conveyancing lawyer handles all of this: the SPA, the loan documents (If you are taking a bank loan), the stamp duty with LHDN, any consent applications the transaction requires, and the title registration. It is one process with many moving parts. Each part has its own deadline.
While it is technically possible for individuals to manage their own property transactions in certain contexts, doing so independently is highly complex, risky, and generally not advisable. There is a practical reason to engage an advocate & solicitor to handle the case. Mistakes made during conveyancing often only surface years later – a missed caveat, a defective title, or a wrong clause in the SPA. These are expensive and slow to fix.
What type of property purchase are you making?
The process and rules differ depending on how you are buying. There are three main situations.
1. Buying from a private seller (sub-sale)
This is the resale market. You are buying from an individual, not a developer.
Here is how the timeline typically runs.
You and the seller agree on the price. You sign an offer letter and pay an earnest deposit. Usually, 2% to 3% of the purchase price. Both sides then have 14 to 21 days to sign the full SPA.
When signing the SPA, you will pay the remaining deposit to make up a total of 10% of the purchase price. The balance 90% is usually due within 90 days of signing. There is often a 30-day extension available, but interest will be charged for the extended period.
One thing people get caught on: the earnest deposit is not automatically refundable if you change your mind. If you pull out without a valid legal reason, such as a failed loan application covered by a “subject to loan” clause, you risk losing the earnest deposit. More on this in the FAQ section below.
Both the buyer and the seller may need their own lawyer. One lawyer cannot act for both in the same transaction. It would be a conflict of interest.
Typical total timeline: 3 to 4 months from SPA signing to completion, for a property with a clean title and no consent requirement.
2. Buying from a developer (new launch or under-construction)
Purchase from Housing Developer are governed by the Housing Development (Control and Licensing) Act 1966 (HDA 1966). This law is introduced to protect home buyers.
Developer SPAs come in prescribed statutory forms under Malaysian housing law. Schedule G covers landed properties: terrace houses, semi-Ds, bungalows. Schedule H covers stratified properties: condos, apartments, serviced residences. The developer cannot change these terms in the agreement. The terms are fixed by law.
The developer has a legal deadline to deliver your property. 24 months for landed properties (Schedule G). 36 months for stratified properties (Schedule H). According to the decisive case law, both timelines are calculated from the date you paid your booking fee and not from the date of the SPA, as per the decision of the Federal Court in PJD Regency Sdn. Bhd. v Tribunal Tuntutan Pembeli Rumah & Anor.
If the developer hands over the property late, you can claim compensation known as Liquidated Ascertained Damages (LAD), calculated at 10% per annum on your purchase price, based on the number of days of delay. This is your statutory right. You do not need to prove any actual loss.
The developer’s panel lawyers represent the developer. They can process your SPA, but their duty is to the developer, not you. You have every right to appoint your own lawyer.
On fees: For HDA transactions, the law provides a statutory discount in SPA legal fees. You generally only pay 60% to 75% of the standard rate, depending on the property price. More details in the fees section below.
3. Transferring property within the family (love and affection transfer)
Transfers between family members follow a different process. Parent to child. Spouse to spouse. While the legal process of changing the registered owner at the land office is largely the same. The stamp duty treatment is very different.
As of 2026:
Transfers between spouses (Husband to wife or wife to husband): Full stamp duty exemption on the transfer instrument.
Transfers between parents and children (Parent to child or child to parent): Full stamp duty exemption on the first RM1,000,000 of the property’s value. For any amount above RM1,000,000, a 50% remission applies on the remaining balance. The transferee must be a Malaysian citizen. This relief also extends to legally adopted children and step-children.
Legal fees for love and affection transfers between family members are generally lower than those for a normal property sale, capped at up to 50% of the applicable SRO 2023 scale fee.
The full process, step-by-step
This is the section most buyers wish they had read before signing anything.
The steps below follow a standard sub-sale purchase. Where developer purchases differ, we are not focusing on them here.
Step 1: Offer letter and booking fee
You agree on the price with the seller. You sign an offer letter and pay an earnest deposit, typically 2% to 3% of the purchase price.
Read the offer letter before you sign it. It is not a formality. It sets out the earnest deposit amount, the timeline to sign the SPA, and what happens if either side pulls out.
Step 2: Appoint your lawyer immediately
Do not wait for the SPA to be ready. Appoint a conveyancing lawyer the moment you sign the offer letter or even before.
Why is there an urgency? If you are taking a bank loan, your loan application needs to be submitted at the same time. The completion timeline starts from SPA signing, and loan approvals take time.
To appoint a lawyer, you will need to sign a Warrant to Act. This officially authorises the lawyer to act for you. From that point, they will deal with the seller’s solicitor, the bank, and the land office on your behalf.
Before appointing any lawyer, always verify that they hold a valid practising certificate at legaldirectory.malaysianbar.org.my. If a name does not appear, call the Bar Council at +603 2050 2191 before proceeding.
Every practising lawyer in Malaysia carries mandatory Professional Indemnity Insurance under s.78A of the Legal Profession Act 1976. This means if something goes wrong due to their negligence, you have legal recourse.
Step 3: SPA preparation and signing
In sub-sale transactions, the seller’s lawyer normally prepares the SPA. Your lawyer reviews it on your behalf. They check the title and verify that the seller has the right to sell, raise any concerns, or push back on any terms that are not in your interest.
You sign. The seller signs. You then pay the balance of the deposit to bring the total to 10%.
The SPA itself carries a flat RM10 stamp duty per copy. The larger stamp duty bill comes later, when the title transfer (MOT) is processed.
For developer purchases, the SPA is a standard form prescribed by law and prepared by the developer’s lawyer. Have your own lawyer review it before you sign, especially to understand your rights to LAD and the defect liability period.
Step 4: Loan documentation
If you are financing the purchase, your appointed lawyer prepares your loan facility agreement and charge documents alongside the SPA. Not after. Not separately. But at the same time.
At FLTC, we handle both in-house. The same team managing your SPA also manages your loan documents. This matters because both processes run on parallel timelines towards the same completion deadline. Different firms can create handover delays, while one firm reduces the risk of things falling through the gaps.
The charge document registers the bank’s interest over your property title. It gives the bank security until you finish paying off the loan.
Stamp duty on the loan agreement: 0.5% of your total loan amount. This is payable by the buyer/borrower.
Step 5: Stamp duty at LHDN
From 1 January 2026, Malaysia is moving towards a Stamp Duty Self-Assessment System (SDSAS). The old STAMPS portal closed on 31 December 2025. Stamping now goes through e-Duti Setem (e-DS) under the MyTax Portal.
The SDSAS is implemented in three phases. Phase 1 (from January 2026) covers tenancy agreements, leases, securities instruments, and general stamping. Phase 2 (from January 2027) covers property ownership transfers, including the MPT and loan agreement. Phase 3 (from January 2028) covers all remaining chargeable instruments.
In practice, your lawyer will continue to handle the filing and payment on your behalf. The 30-day deadline from the date of the execution remains unchanged.
Stamp duty on the Memorandum of Transfer (MOT) is calculated based on the higher of your purchase price or market value:
| Property Value | Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 to RM500,000 | 2% |
| RM500,001 to RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
Example: RM650,000 property
- RM100,000 x 1% = RM1,000
- RM400,000 x 2% = RM8,000
- RM150,000 x 3% = RM4,500
- Total MOT stamp duty: RM13,500
First-time buyer? You might pay nothing.
If you have never owned a residential property and you are buying one now for RM500,000 or below, you are fully exempted from stamp duty on both the MOT and the loan agreement. On a RM500,000 property, that is up to RM9,000 saved on the MOT alone. The exemption also applies to the stamp duty on the loan agreement.
This stamp duty relief applies to SPAs signed by 31 December 2027. Only Malaysian citizens are eligible. Permanent residents and foreigners do not qualify.
Buying as a foreigner?
Foreign buyers of residential property are subject to pay a flat 8% stamp duty on the full property value, effective from 1 January 2026. On a RM1,000,000 property, that is RM80,000 in stamp duty. You should budget for this before you sign anything.
Step 6: State Authority consent (not always needed, but know when it is)
Most transactions do not need this. But when they do, it adds 2 to 4 months to your timeline.
You will need State Authority consent if:
- The land is leasehold with a restriction on interest
- You are a foreign buyer (under s.433B of the National Land Code)
- The property is a low or medium-low-cost unit
- The property is a Bumiputera-restricted lot
Consent application legal fees under the SRO 2023: RM200 for properties valued at RM100,000 or below, RM500 for properties valued at RM100,001 to RM1,000,000, and RM3,000 for properties valued above RM1,000,000.
Step 7: Title search and registration at the land office
Before you enter the sale and purchase agreement, your lawyer runs a title search. This confirms that the seller is the registered owner of the property. It also checks for any issues such as outstanding charges, caveats, restrictions, or government acquisition notices.
If everything is in order, the Memorandum of Transfer (Form 14A) will be prepared, signed by both parties, stamped at LHDN, and lodged at the land office. Your name will then be entered into the land office records. That is when ownership is legally transferred to you.
Step 8: Perfection of Transfer and Charge (developer purchases only)
This one surprises a lot of buyers.
When you buy from a developer before the individual or strata title exists, you cannot be registered as the owner right away. The whole development sits under a master title in the developer’s name while it is being built. Individual titles are only issued after the developer completes the subdivision process.
Once your individual title is issued, two important steps follow:
Perfection of Transfer (POT): Your name gets registered on the individual title. Until the POT is done, the developer remains the registered proprietor on paper, even if you have been living in the property for years.
Perfection of Charge (POC): If you have a bank loan, the bank’s interest is formally registered on your individual title. Without this, the bank has no registered security. That creates problems if you ever want to refinance or sell.
Legal fees for POT and POC: typically 25% of the applicable SRO 2023 scale fee, where the same firm handled the original purchase.
Do not let POT drag on. Some buyers collect their keys and forget about them. Then, years later, when they try to sell or refinance, they discover the little process was never completed. The moment your developer informs you that the individual title has been issued, follow up promptly.
What are the actual fees?
Conveyancing fees in Malaysia are not set by individual lawyers. They are set by the law under the Solicitors Remuneration Order 2023 (SRO 2023). Every licensed law firm follows the same prescribed scale. No lawyer can charge above it. The only flexibility allowed is a discount of up to 25%, which some firms offer and some do not.
There are four costs you need to understand.
Your lawyer’s fee for the SPA
Property Price | Rate |
|---|---|
First RM500,000 | 1.25% |
Next RM7,000,000 (RM500,001 up to RM7,500,000) | 1.00% |
Above RM7,500,000 | Subject to negotiation on the excess, but shall not exceed 1% of such excess |
Minimum fee | RM500 |
What you would pay on RM650,000 property:
- RM500,000 x 1.25% = RM6,250
- Remaining RM150,000 x 1% = RM1,500
- Total SPA legal fee: RM7,750 (excluding disbursements, before any discount)
Buying from a developer? Your fee is lower by law.
The law gives you an automatic discount on SPA legal fees for HDA purchases. You get it regardless of which firm you use.
Property Price | What You Pay |
|---|---|
RM50,000 or below | Fixed RM500 |
RM50,001 to RM250,000 | 75% of the scale fee |
RM250,001 to RM500,000 | 70% of the scale fee |
RM500,001 to RM1,000,000 | 65% of the scale fee |
Above RM1,000,000 | 50% of the scale fee |
On a RM650,000 developer purchase: RM7,750 at 65% = RM5,038.
Your lawyer’s fee for the loan documents
Same scale as the SPA fee. 1.25% on the first RM500,000 of your loan, 1% on the portion above that. Charged separately.
Example: RM500,000 loan = RM6,250 in loan documentation fees.
Developer purchases get the same HDA discount on this fee, too.
At FLTC, SPA, and loan documentation are handled by the same team on the same timeline.
Stamp duty (this goes to the government, not your lawyer)
Rates are in Step 5 above. Quick reference:
- MOT stamp duty: 1% to 4% tiered on the property value
- Loan agreement stamp duty: flat 0.5% of the loan amount
- First-time Malaysian buyer at RM500,000 or below: full exemption of both MOT and loan agreement stamp duty, subject to government conditions and qualifying criteria (SPAs signed by 31 December 2027)
- Foreign buyer: flat 8% stamp duty on instruments of transfer of residential executed – from 1 January 2026 onward
Disbursements
These are not your lawyer’s fees. They are third-party costs your lawyer pays on your behalf:
Item | Cost |
|---|---|
SPA stamp duty | RM10 per copy |
MOT stamp duty | 1% to 4% of property value (see Step 5) |
Loan agreement stamp duty | 0.5% of the loan amount |
Official title search — PTGWP (KL) | RM50 per title |
Official title search — PTG Selangor | RM50 per title |
Land office fees are published rates and subject to change. A good firm provides you with an all-in quote covering legal fees, stamp duty, and disbursements before you sign the warrant to act.
Selling a property with an existing loan?
Your lawyer needs to release the bank’s charge on the title formally. This is referred to as a Discharge of Charge.
- First title or charge: RM400
- Each additional title in the same instrument: RM100
A note on RPGT: The seller’s tax, not yours
Real Property Gains Tax (RPGT) is a tax the seller pays when they make a profit from selling a property. As the buyer, you do not have to pay for it. However, it can still affect your transaction.
The rate depends on how long the seller has owned the property.
Malaysian citizen or PR selling:
| Years owned | Rate of the gain |
|---|---|
| Years 1 and 2 | 30% |
| Year 3 | 30% |
| Year 4 | 20% |
| Year 5 | 15% |
| Year 6 onwards | 0% |
Foreigner selling:
30% for the first five years. 10% from year 6 onwards. There is no 0% rate for foreigners, no matter how long they have held the property.
Why does this matter to you? Two reasons.
First, a seller facing a large RPGT bill may factor it into the selling price.
Second, upon completion, your lawyer is required by law to retain 3% of the purchase price (or 7% if the seller is a foreigner) and remit it directly to LHDN. This amount is deducted from the sale proceeds, not the buyer’s pocket. Your lawyer will reflect it in the completion statement.
Who pays for what (Buyer VS Seller)
This question comes up in almost every first meeting with a buyer.
You pay (as buyer:）
- Your own lawyer’s SPA fees
- Loan documentation fees (which can be handled by the same firm at FLTC)
- MOT stamp duty
- Loan agreement stamp duty
- Disbursements, including title searches, land office registration fees, and consent application fees, where applicable.
The seller pays:
- Their own SPA legal fees
- Discharge of Charge is legal fees, if they are paying off an existing loan upon sale
- RPGT where applicable
- Estate agent’s commission (which is not a legal fee)
On the developer panel’s lawyers:
The developer’s panel firm processes the SPA on behalf of the developer. They are not your lawyer. Their duty is to the developer. You have the right to appoint your own lawyer. The HDA discounted fee structure applies regardless of which firm you use. Any savings from using the developer’s panel firm are often minimal compared to the value of receiving independent legal advice on a property purchase worth hundreds of thousands of ringgit.
Does this work the same way in every state?
No. This surprises people.
Land is a state matter in Malaysia. The National Land Code 1965 provides the legal framework across Peninsular Malaysia. But each state operates its own land office with its own procedures, timelines, and requirements.
KL vs Selangor: they are different offices
The Pejabat Tanah dan Galian Wilayah Persekutuan (PTGWP) handles land registered in Kuala Lumpur. The Pejabat Tanah dan Galian Selangor (PTG Selangor) handles land registered in Selangor, including Petaling Jaya (PJ), Subang Jaya, Shah Alam, Klang, Puchong, Cheras, Seri Kembangan, and all other parts in Selangor.
These are separate government offices, each with different staff, different processing times, and different procedures, especially noticeable for matters such as Bumiputera consent applications.
A lawyer who regularly deals with both offices will know the current processing timelines and what to expect. This is practical, on-the-ground knowledge that does not appear in brochures or marketing material, but can make a real difference to the progress of a transaction.
Peninsular Malaysia vs Sabah & Sarawak
The NLC 1965 only applies to Peninsular Malaysia and Labuan. Sabah has its own land law Sabah Land Ordinance. While Sarawak operates under the Sarawak Land Code. Both states have materially different rules around land title and native customary rights. A Peninsular-licensed firm cannot directly handle transactions in Sabah or Sarawak.
How do you check if a lawyer is properly licensed?
Go to legaldirectory.malaysianbar.org.my and search for the name.
The Malaysian Bar Legal Directory only lists lawyers with a current practising certificate (Sijil Annual). If the lawyer’s name does not appear, call the Malaysian Bar at +603 2050 2191 before handing over any money.
Every practising lawyer in Malaysia must have Professional Indemnity Insurance under s.78A of the Legal Profession Act 1976. This is not optional. It means if something goes wrong due to the lawyer’s negligence, you have legal recourse.
Things that go wrong, and how to avoid them
Most transactions go smoothly, but the problems that do come up are predictable.
The developer is late in handing over your property
The LAD clause in your contract protects you under the Housing Development Act.
If the developer misses the vacant possession deadline (24 months for landed properties, 36 months for stratified properties, from the date of booking fee payment), you are entitled to claim damages at 10% per annum on your purchase price, calculated on a daily basis.
Claims up to RM50,000 can be filed at the Tribunal Tuntutan Pembeli Rumah. The filing fee is RM10, and no lawyer is needed. For claims above RM50,000, the matter will go to the civil court. You have 6 years from the date of breach to file your claim.
Keep all correspondence with the developer. Once the vacant possession date passes without handing over the keys, get your lawyer to send a written notice.
Something unexpected in the title
This is why the title search matters. A caveat, an undisclosed charge, outstanding quit rent arrears, or a restriction the seller did not mention. Any of these can stop your transaction or cause problems after completion.
Your lawyer will flag all of this before you pay the balance purchase price. If anything comes up, do not let anyone pressure you to proceed before it is resolved.
You cannot get your loan on time
If your offer letter does not include a “subject to loan” clause and the bank rejects your application, you cannot proceed to the purchase. You may risk losing your earnest deposit. Make sure the clause is included in the booking form. Do not assume it is standard.
You use the developer’s panel lawyer and do not understand what you signed
The panel lawyer processes the transaction. They do not advise you. These are two different roles. If you are a first-time buyer or if there is anything non-standard in your transaction, you should appoint your own lawyer.
Frequently Asked Questions:
If you are buying, selling, or transferring property in KL or Selangor, FLTC (Foo Leong Tan & Chan) is based in Bukit Jalil. We handle SPA, loan documentation, title transfers, and consent applications in-house.
Disclaimer:
The information provided above is intended solely for general reading and easy understanding by laypersons. It does not constitute formal legal advice. For any detailed inquiries, specific case assessments, or further clarification, you are strongly advised to contact us or consult directly with a qualified lawyer.