Buying your first property in Malaysia, especially in Johor Bahru, is an exciting milestone — but also comes with various legal and financial obligations. Among the most common concerns are:
🧾 Legal fees
🧾 Stamp duties
🧾 Memorandum of Transfer (MOT)
This article breaks down these costs in simple terms, helping first-time buyers understand what they’re paying for and how to plan better financially.
Legal fees are paid to your solicitor (lawyer) for handling your Sale & Purchase Agreement (SPA), loan agreement, and title transfer. They are calculated based on a scale of fees prescribed by the Malaysian Bar Council:
| Property Price (RM) | Legal Fee Rate |
|---|---|
| First RM500,000 | 1.0% |
| Next RM500,000 | 0.8% |
| Next RM2,000,000 | 0.7% |
| Next RM2,000,000 | 0.6% |
| Remaining | 0.5% |
📌 Pro Tip: For new launches, many developers absorb legal fees on SPA and loan agreements. Always check before signing!
🖼️ Image Suggestion: Infographic of tiered legal fee calculation
(Alt text: “Breakdown of legal fees by property price tiers in Malaysia”)
Stamp duty is a government tax imposed on legal documents. For property purchases, it’s applied on two documents:
Typically, stamp duty for SPA is minimal (RM10–RM100).
This is 0.5% of the total loan amount. For example, if your loan is RM400,000, the duty is RM2,000.
| Property Value (RM) | Stamp Duty Rate |
|---|---|
| First RM100,000 | 1.0% |
| Next RM400,000 | 2.0% |
| Remaining Amount | 3.0% |
🖼️ Image Suggestion: Table comparing MOT stamp duty tiers
(Alt text: “MOT stamp duty table for Malaysian property buyers”)
MOT is a legal document that transfers ownership of the property from the developer or previous owner to your name, registered at the land office.
✅ Required for: All strata-titled or landed properties
⏳ When: Usually done 12–36 months after the project is completed
💸 Cost: Based on the market value (see stamp duty tier above)
📌 For new launches, developers may offer free MOT or subsidized costs. Check if this is part of the promo!
🖼️ Image Suggestion: A lawyer handing over MOT title to buyer
(Alt text: “Lawyer giving MOT title to property buyer in Malaysia”)
Let’s assume a property purchase of RM500,000 with 90% loan (RM450,000):
| Item | Estimated Cost (RM) |
|---|---|
| Legal Fee on SPA | 5,000 |
| Legal Fee on Loan | 4,500 |
| SPA Stamp Duty | 100 |
| Loan Agreement Stamp Duty | 2,250 |
| MOT Stamp Duty | 9,000 |
| Total | RM20,850 |
📌 With developer rebates, this could be reduced to less than RM5,000!
🖼️ Image Suggestion: Cost breakdown infographic for RM500k property
(Alt text: “Cost summary chart for first-time homebuyers in Johor Bahru”)
Malaysia occasionally offers exemptions and discounts for first-time homebuyers under government incentives:
🟢 Stamp duty exemption for SPA & MOT up to RM500,000 for first-time buyers (depending on year)
🟢 Youth housing schemes may provide further rebates and financial aid
🟢 Developer campaigns (HOC or own incentives) may include zero legal fees
🖼️ Image Suggestion: Poster-style graphic for “First Home Buyer Exemption”
(Alt text: “Stamp duty exemption for first-time property buyers in Malaysia”)
Before signing anything, make sure to ask your agent or lawyer:
✅ Are legal fees included?
✅ Is MOT cost covered by the developer?
Understanding these costs helps you plan better and avoid surprises, especially if you're a first-time buyer or foreign investor under the MM2H program.
Singapore