Picture this, it’s time for you to hit that all important milestone: finally owning a house. You’re getting ready to sign all the necessary documents, trying to make sense of the huge heap of papers in front of you, when you stumble across the term MoT. Well, for your information, MoT stands for Memorandum of Transfer.
What is MoT? It is basically a document that indicates the property is yours, and it’s used to transfer ownership of the house from the developer to you, or in the case of secondary market purchases, transfer ownership of the house from the seller to you.
In some cases, when purchasing from a developer, the MoT may not be issued at the time of purchase because properties which are still under construction may not have had their titles issued yet. However, fret not, as the developer will contact you to sign the MoT once the title is issued.
Stamp Duty exemption for MoT
Of course, there are situations which do not involve a buyer and a seller as well. Let’s take transfers of property between family members as an example.
Family transfers of ownership are different. Specifically, parents to children or spouses.
There is a consideration stated in the MoT for this particular type of transfer, called “love and affection”. This consideration only applies when the transfer is from parent to children, vice versa, or from spouse to spouse. The MoT must still be adjudicated and stamped in these cases.
Breakdown of Stamp Duty waiver on MoT
Malaysiahousingloan.com explained it very well, so the following is a simple breakdown on how MoT & the stamp duty exemption work among family members in Malaysia. You can visit their website to get a more specific breakdown.
Congratulations! You now know the basics of Memorandum of Transfer in Malaysia and how the stamp duty exemption works in the transfer process. Now you’re well on your way to owning your very own home, with less one confusing term! 😀
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