🏡 What You Need to Know Before Buying Property in Malaysia – Legal Guide for Buyers

Cheryl Ng
Jun 4
2 min read

Why Legal Advice Is Crucial in Real Estate Transactions

Buying a property is one of the biggest financial commitments you’ll make, and in Malaysia, it's not just about signing the Sale & Purchase Agreement (SPA). It's about protecting your rights, ensuring you're not overpaying or buying into a legal mess, and most importantly, understanding what you're signing.

As a law firm experienced in real estate law, we often see buyers get into trouble when they skip legal checks or rely solely on agents or developers. Whether you're buying a subsale unit, a new development, or a strata property, here's what you need to know.

Key Legal Steps When Buying Property in Malaysia

1. Review of Sale & Purchase Agreement (SPA)

The SPA is not just a formality — it's a legally binding document. Your lawyer will ensure:

The terms protect your rights as a buyer.
The vacant possession clause and timelines are clearly stated.
Any penalties, rebates, or developer promises are documented.

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2. Land Title Check & Due Diligence

It’s important to verify:

Whether the property has an individual or strata title.
If there are existing charges, encumbrances, or outstanding quit rent/assessment.

Your lawyer will conduct a title search and review developer licenses for new projects.

3. Transfer of Ownership (Perfection of Transfer)

Once the title is issued, your lawyer handles the Perfection of Transfer (POT) and if applicable, Perfection of Charge (POC) with your bank.

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4. Stamp Duty and Legal Fees

Your lawyer will advise you on:

Stamp duty exemptions (e.g., first-time buyer)
Estimated legal costs and disbursements
Timelines for Real Property Gains Tax (RPGT), if you're selling later on

How a Law Firm Can Help You Avoid Risk

We assist clients by:

Explaining complex legal terms in plain language.
Making sure the developer is legitimate and licensed.
Protecting your deposit and buyer’s rights.
Advising on joint ownership, inheritance, and loan documentation.

Whether you're a local buyer, investor, or foreign purchaser, we ensure that your transaction is legally sound and risk-free.