Property owners who want to sell property in Malaysia may need help due to the complex procedures and the necessary expenses. Foreigners who want to know how to sell a house in Malaysia can also find it challenging because of the legal formalities required. Understanding the selling property in Malaysia procedure is necessary to market properties successfully. This article will discuss the ten steps to sell property in Malaysia that can help sellers close deals.
Step 1: Determine your property value
Property owners start to sell property in Malaysia by determining their property’s value. Real estate value appreciates over time, and the property you bought years ago can be valued more presently, especially if improvements are introduced. As such, a professional valuation is necessary to determine the property value. Registered Valuers conduct this property valuation since they are professionals who have obtained specific qualifications and are registered with the Board of Valuers, Appraisers, Estate Agents, and Property Managers (BOVAEA). You can check the BOVAEA website to find a registered valuer. They maintain a database of registered valuers, and you can search for a valuer by name or location.
Step 2: Hire a real estate agent
Hiring a real estate agent can help you sell property in Malaysia. Real estate agents assist people in finding properties for sale, such as houses or commercial spaces. They usually work for real estate companies and are duly registered with the Board of Valuers, Appraisers, Estate Agents, and Property Managers (BOVAEA), where they must earn a diploma in estate agency to practice legally. Real estate agents are the front-liners in selling property in Malaysia. They have extensive knowledge of the market and connections with professionals in the industry. They can effectively market your property, attract potential buyers, and negotiate favorable deals.
Step 3: List your property
Sell property in Malaysia by listing it with the real estate agent’s property listings and inventory. Listing your property allows it to be advertised to the public as a property for sale in Malaysia and opens the opportunity to be marketed to potential buyers.
Step 4: Negotiate with potential buyers
Finding a potential buyer is difficult, but negotiating with potential buyers is more challenging and requires negotiation skills. Having a real estate agent sell property in Malaysia and deal with potential buyers on your behalf can streamline this transaction. Negotiate with the buyer to reach an agreed-upon purchase price. During this step, buyers will conduct a thorough due diligence process, and you must provide the essential documents proving your legal ownership and answer the buyers’ questions. Establishing rapport between you and the potential buyer can improve the chances of a close deal.
Step 5: Sign the Letter of Offer
After negotiating with the prospective buyer and reaching an agreed-upon purchase price, you should sign the Letter of Offer to finalize the property price and sell the property in Malaysia. The Letter of Offer is a formal document and a binding agreement between the buyer and seller, specifying the purchase price, payment terms, conditions of sale, and other relevant details.
Step 6: Sign the Sale and Purchase Agreement (SPA)
After signing the Letter of Offer, the next step to sell property in Malaysia is signing the Sale and Purchase Agreement (SPA) between you and the buyer. The SPA is a formal document that outlines the terms and conditions under which a potential buyer intends to purchase a specific property. The agreement finalizes the terms and conditions of the sale and is the culmination of negotiations between the buyer and the seller. It is advisable to have a property lawyer draft and review the SPA to protect your interests and ensure its legality. Moreover, the buyer must deposit 10% of the property’s price to proceed to the next step.
Step 7: Handle legal documentation
Processing legal documentation for property purchases is necessary to sell property in Malaysia. The Land Registry Office in Malaysia typically handles this process in the state where the property is located. The transfer of property ownership in Malaysia and all relevant legal documentation are undertaken here. Moreover, depending on the transaction and state location, the seller pays the registration fees ranging from RM 50 ($10.50) to RM 100 ($21). These fees are part of the overall costs associated with transferring property ownership. On the other hand, buyers are responsible for paying a Stamp Duty to authenticate and formalize the transfer documents, ranging from 1% to 4% based on the property price bracket.
Step 8: Transfer of property and payment
Before transferring the property ownership to the buyer, ensure that the buyer pays the remaining balance. To avoid fraud on the seller’s part, complete the legal transfer of property ownership in Malaysia only after the buyer settles all payments.
Step 9: Pay any outstanding fees or taxes
Selling a property in Malaysia includes paying any outstanding fees and taxes. As a seller, you are responsible for paying the real estate agent’s commission of up to 3% of the property price. Hiring a property lawyer can cost anywhere from 0.5% to 1% of the property price. Moreover, you must pay the amount for selling property in Malaysia tax, including the Real Property Gains Tax (RPGT) imposed on the profit you make from selling a property in Malaysia. Malaysian citizens and permanent residents pay rates ranging from 0 to 30%, depending on the year of disposal. Foreigners pay 30% of the property’s price for disposal within five years of ownership and 10% for six and subsequent years.
Step 10: Hand over the property
Complete the step to sell property in Malaysia by officially handing the property to the buyer. This is when you physically hand over the keys to the property, and the buyer becomes the new legal owner and obtains relevant ownership documents.
Struggling to sell your property in Malaysia? We can help!
Selling a property in Malaysia can be a complex and overwhelming process, whether you’re dealing with legal requirements, finding the right buyer, or understanding the market. Our experienced team of real estate experts is here to guide you through each step, from setting the right price to closing the deal, ensuring a smooth and hassle-free experience. Whether you need help with the entire process or just certain parts, we’ve got you covered. Leave your details below, and we’ll reach out to discuss your needs, or email us directly at [email protected] for immediate assistance.
Frequently Asked Questions (FAQs)
What is the cost of selling property in Malaysia?
The cost of selling property in Malaysia can vary depending on the property’s price and the legal assistance used. A real estate agent fee can cost up to 3% of the property price. Hiring a property lawyer costs about 0.5% to 1%. Registration fees can amount to RM 50 ($10.50) to RM 100 ($21), depending on the price and location of properties.
Can foreigners sell leasehold property in Malaysia?
Yes, foreigners can sell leasehold property in Malaysia. However, certain restrictions and requirements may vary between different states in Malaysia. This includes specifications on the remaining lease period to be sufficient to justify the sale price. In some cases, obtaining consent from relevant authorities may be necessary, especially if the leasehold property is restricted.
Which legal fees do I pay?
The legal fees for selling property in Malaysia required for sellers are the real estate agent’s commission of up to 3% of the property price and the property lawyer fee costing anywhere from 0.5% to 1%.
How long does it take to sell my house?
Selling a house in Malaysia will take anywhere from one to three months. However, this timeframe can be shortened by hiring a real estate agent to help you sell property in Malaysia.
