🏡 What is MOT (Memorandum of Transfer)?

If you’ve ever looked into buying a house in Malaysia, you’ve probably heard the term MOT being thrown around by bankers, lawyers, or agents. But what exactly is it, and why does it matter so much? 🤔

📜 What is MOT?

MOT = Memorandum of Transfer.
It’s the legal document that officially transfers ownership of the property from the developer/seller to you (the buyer).

Think of it as your property’s “birth certificate” — without it, the house isn’t legally yours.

💰 How Much Does MOT Cost?

MOT comes with a stamp duty fee (a tax paid to the government), calculated based on the property’s price:

• First RM100,000 → 1%
   
• Next RM400,000 → 2%
   
• Next RM500,000 → 3%
   
• Above RM1 million → 4%
   

Example:
If your house costs RM500,000, your MOT stamp duty is about RM9,000.

⏳ When Do You Pay MOT?

Usually during the subsale process (when buying from another owner). For new projects, developers sometimes absorb part of the MOT fees as a promo. Always check your SPA (Sale & Purchase Agreement).

⚖️ Why MOT Matters

• ✅ It makes your ownership official
   
• ✅ Protects your rights as the legal owner
   
• ✅ Required for future resale or refinancing
   

👀 Quick Tip

Always set aside budget for MOT when buying property. Don’t just save for down payment — the “hidden” legal costs can add up fast.