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 think about this part. But this is the one that actually makes you the legal owner.
Until that second part happens, you are not the legal owner. Doesn’t matter if you have paid in full and collected the keys. Under Malaysia’s land law, the National Land Code 1965, the land office register is the only conclusive proof of ownership.
Your conveyancing lawyer handles all of this. The SPA. The loan documents, if you are taking a bank loan. The stamp duty at LHDN. Any consent applications the transaction requires. And the title registration. It is one process with a lot of moving parts. Every part has a deadline.
You cannot do this yourself. Malaysian law requires a licensed advocate and solicitor to handle property transactions. But beyond it being a legal requirement, there is a practical reason. Mistakes made during conveyancing tend to surface years later. A missed caveat. A defective title. 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, 1% to 2% of the purchase price. Both sides then have 14 to 21 days to sign the full SPA.
At SPA signing, you pay the balance of the deposit to bring it to 10% of the purchase price. The remaining 90% is due within 90 days of signing. There is usually a 30-day extension available, but interest is charged for the extra time.
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 it. More on this in the FAQ section.
Both sides need their own lawyer. One lawyer cannot act for both. It is a conflict of interest.
Typical total timeline: 3 to 4 months from SPA signing to completion, for a clean title with no consent requirement.
2. Buying from a developer (new launch or under-construction)
Developer purchases are governed by the Housing Development (Control and Licensing) Act 1966 (HDA 1966). This law exists to protect buyers.
Developer SPAs come in two forms set by 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 forms. The terms are fixed.
The developer has a legal deadline to hand over your property. 24 months for landed (Schedule G). 36 months for stratified (Schedule H). Both are calculated from the date you paid your booking fee.
This comes from the Federal Court’s ruling in 2021 (PJD Regency). The clock starts from booking, not from when you signed the SPA.
If the developer is late, you can claim Liquidated Ascertained Damages (LAD) at 10% per annum on your purchase price, calculated day by day. This is your statutory right. You do not need to prove any actual loss.
The developer’s panel lawyers work for the developer. They will process your SPA, but their duty of care is to the developer, not you. You have every right to appoint your own lawyer.
On fees: HDA transactions qualify for a statutory discount on SPA legal fees. You 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 path. Parent to child. Spouse to spouse. The legal mechanics of changing the registered owner at the land office are largely the same. But the stamp duty treatment is very different.
As of 2026:
Husband to wife or wife to husband: Full stamp duty exemption on the transfer instrument.
Parent to child or child to parent: Full stamp duty exemption on the first RM1,000,000 of the property’s value. For anything above that, 50% remission applies on the remaining balance. The transferee must be a Malaysian citizen. Step-children and legally adopted children count.
Legal fees for love and affection transfers are capped at 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 have noted it.
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 1% to 2% of the purchase price.
Read the offer letter before you sign it. It is not a formality. It sets the 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 before.
Why the urgency? If you are taking a bank loan, your loan application needs to go in at the same time. The completion timeline starts from SPA signing, and loan approvals take time.
To appoint a lawyer, you sign a Warrant to Act. This formally instructs them to act on your behalf. From that point, they deal with the seller’s solicitor, the bank, and the land office.
Before appointing anyone, verify they hold a valid practising certificate at legaldirectory.malaysianbar.org.my. If a name does not appear, call the Bar 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. If something goes wrong through their negligence, you have recourse.
Step 3: SPA preparation and signing
In sub-sale transactions, the seller’s lawyer prepares the SPA. Your lawyer reviews it on your behalf. They check the title. They verify the seller has the right to sell. They push back on any terms that are not in your interest.
You sign. The seller signs. You pay the balance of the deposit to bring the total to 10%.
The SPA itself carries a flat RM10 stamp duty per copy. The bigger stamp duty bill comes later, when the title transfer is processed.
For developer purchases, the SPA is a statutory form that the developer’s lawyers prepare. Having your own lawyer review it before you sign is still worthwhile, especially for understanding your LAD rights and the defect liability period.
Step 4: Loan documentation (**confirm?)
If you are financing the purchase, your lawyer prepares your loan facility agreement and charge documents alongside the SPA. Not after. Not separately. At the same time.
At FLTC, we handle both in-house. The same team managing your SPA manages your loan documents. This matters because the two run on parallel tracks against the same completion deadline. Different firms create handoff delays. One firm means fewer things fall through the gaps.
The charge document registers the bank’s interest against your land title. Their security until you finish paying off the loan.
Stamp duty on the loan agreement: 0.5% of your total loan amount. This is the buyer’s obligation.
Step 5: Stamp duty at LHDN
From 1 January 2026, stamp duty in Malaysia moved to a self-assessment system. The old STAMPS portal closed on 31 December 2025. Stamping now goes through e-Duti Setem (e-DS) on the MyTax Portal.
The transition is happening in phases. Phase 1 (from January 2026) covers tenancy agreements, leases, and general stamping. Phase 2 (from January 2027) covers property ownership transfers, including the MOT and loan agreement. Phase 3 (from January 2028) covers all remaining instruments.
In practice, your lawyer handles the filing and payment for you. The 30-day deadline from the date of the instrument remains unchanged.
Stamp duty on the Memorandum of Transfer (MOT) is 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 exempt from stamp duty on both the MOT and the loan agreement. On an RM500,000 property, that is up to RM9,000 saved on the MOT alone. The exemption also covers your loan agreement stamp duty.
SPAs signed by 31 December 2027 qualify. Only Malaysian citizens are eligible. Permanent residents and foreigners do not qualify.
Buying as a foreigner?
Foreign buyers of residential property 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. 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 need State Authority consent if:
- The property is a Bumiputera-restricted lot
- The land is leasehold with a restriction on interest
- You are a foreign buyer (under NLC s.433B)
- It is a low or medium-low cost unit
Consent application fees under the SRO 2023: RM200 for properties at RM100,000 or below, RM500 for RM100,001 to RM1,000,000, and RM3,000 for anything above that.
Step 7: Title search and registration at the land office
Before you pay the balance purchase price, your lawyer runs a title search. This confirms the seller is the registered owner. It also checks for anything that could cause problems: outstanding charges, caveats, restrictions, government acquisition notices.
If everything comes back clean, the Memorandum of Transfer (Form 14A) is prepared, signed by both parties, stamped at LHDN, and lodged at the land office. Your name goes on the register. That is when ownership legally transfers 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 comes through, two things happen.
Perfection of Transfer (POT): Your name finally gets registered on the individual title. Until the POT is done, the developer is still the registered proprietor on paper, even if you have been living there for years.
Perfection of Charge (POC): If you have a bank loan, the bank’s interest gets formally registered against your new 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, when the same firm handled the original purchase.
Do not let POT drag. Some buyers collect their keys and forget about them. Then, years later, they try to sell or refinance and find the title paperwork was never finished. The moment your developer tells you the individual title has been issued, follow up.
What are the actual fees?
Conveyancing fees in Malaysia are not set by individual lawyers. They are set by the government under the Solicitors Remuneration Order 2023 (SRO 2023). Every licensed firm uses the same scale. No lawyer can charge above it. The only flexibility 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% |
Above RM500,000 up to RM7,500,000 | 1% |
Above RM7,500,000 | Negotiation, capped at 1% |
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 (before 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 standard rate |
RM250,001 to RM500,000 | 70% of the standard rate |
RM500,001 to RM1,000,000 | 65% of the standard rate |
Above RM1,000,000 | 60% of the standard rate |
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 on both (SPAs signed by 31 December 2027)
- Foreign buyer: flat 8% on the full residential property value from 1 January 2026
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 registration — PTGWP (KL) | RM50 per instrument |
Land office registration — PTG Selangor | RM30 per instrument |
State Authority consent application | RM200 to RM3,000 (see Step 6) |
Private caveat entry | RM300 for the first title |
Land office fees are published rates and subject to change. A good firm gives you 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 paperwork: RM100
A note on RPGT: The seller’s tax, not yours
Real Property Gains Tax (RPGT) is a tax the seller pays on their profit. As the buyer, you do not pay it. But it affects 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 |
|---|---|
| Year 1 and 2 | 30% |
| Year 3 | 20% |
| Year 4 | 15% |
| Year 5 | 5% |
| 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 big RPGT bill may price it into the deal.
Second, upon completion, your lawyer is required by law to keep back 3% of the purchase price (or 7% if the seller is a foreigner) and send it directly to LHDN. This comes out of what would otherwise go to the seller. Your lawyer will show it in the completion statement.
Who pays for what (Buyer VS Seller)
This comes up in almost every first meeting.
You pay (as buyer:）
- Your own lawyer’s SPA fees
- Loan documentation fees (handled by the same firm at FLTC)
- MOT stamp duty
- Loan agreement stamp duty
- Disbursements, including title search, land office registration, and consent application, where needed.
The seller pays:
- Their own SPA legal fees
- Discharge of Charge if they are paying off an existing loan on sale
- RPGT where it applies
- Agent commission (nothing to do with legal fees)
On the developer panel’s lawyers:
The developer’s panel firm handles the SPA. They are not your lawyer. Their retainer runs to the developer. You have the right to appoint your own. The HDA discounted fee structure applies regardless of which firm you use. The money saved by using the developer’s firm is rarely worth giving up independent advice on a purchase worth hundreds of thousands of ringgit.
Does this work the same way in every state?
No. This surprises people.
Land in Malaysia is a state matter. The National Land Code 1965 provides the framework across Peninsular Malaysia. But each state runs its own land office with its own procedures, timelines, and rules.
KL vs Selangor: they are different offices
The Pejabat Tanah dan Galian Wilayah Persekutuan (PTGWP) handles KL-registered land. The Pejabat Tanah dan Galian Selangor (PTG Selangor) handles Selangor-registered land. This includes PJ, Subang, Shah Alam, Klang, and parts of Puchong, Cheras, and Seri Kembangan.
These are separate government offices. Different staff, different queue times, and different procedures for Bumi consent applications.
A lawyer who handles both offices regularly will know the current timelines and what to expect. This is operational knowledge that does not show up in any marketing material.
Peninsular Malaysia vs Sabah & Sarawak
The NLC 1965 only applies to Peninsular Malaysia and Labuan. Sabah runs under the Sabah Land Ordinance. Sarawak has its own Sarawak Land Code. Both have materially different rules around title types and native customary rights. A Peninsular-licensed firm cannot handle East Malaysian transactions directly.
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 who hold a current Sijil Annual, the annual practising certificate. If a name does not appear, call the Bar at +603 2050 2191 before handing over any money.
Every practising lawyer in Malaysia must carry Professional Indemnity Insurance under s.78A of the Legal Profession Act 1976. This is not optional. It means if something goes wrong through their negligence, you have recourse.
Things that go wrong, and how to avoid them
Most transactions are completed without drama. But the problems that do come up are predictable.
The developer is late handing over your property
The LAD clause in your contract is what protects you under the Housing Development Act.
If the developer misses the vacant possession deadline (24 months for landed, 36 months for stratified, from booking fee payment), you are entitled to claim damages at 10% per annum on your purchase price, calculated daily.
Claims up to RM50,000 go to the Tribunal Tuntutan Pembeli Rumah. Filing fee: RM10. No lawyer needed. Above RM50,000, you are looking at civil court. You have 6 years from the breach to file.
Keep every piece of correspondence with the developer. The moment the VP date passes without 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, a restriction the seller did not mention. Any of these can stop your transaction or cause problems after completion.
Your lawyer flags all of this before you pay the balance. 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 SPA does not include a “subject to loan” clause and your bank rejects your application, you cannot complete. You risk losing your 10% deposit. Make sure the clause is in your SPA. 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. Those are different things. If you are a first-time buyer or if there is anything non-standard about your transaction, 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.