Property
Malaysia — Property: Buying Process
Buying property in Malaysia starts with signing a Letter of Offer and paying a 2-3% earnest deposit. Both parties then engage lawyers: the buyer's lawyer runs a land search to check encumbrances and verify legal ownership. The Sale and Purchase Agreement (SPA), drafted/reviewed by a licensed solicitor, is signed next along with a further 7-8% deposit. The buyer submits documents (payslips, bank statements, SPA) for a housing loan application, while the seller's lawyer requests a redemption statement from the seller's bank. For leasehold properties, the seller's lawyer applies for State Authority consent to sell, taking 1-3 months. Finally, the property is registered at the Land Office, and the Issue Document of Title is issued in the buyer's name. Total timeline: 3 months to 1 year, depending on developer-sale versus private resale.
Key facts
- Letter of Offer: 2-3% earnest deposit signals serious intent to purchase.
- SPA signing: further 7-8% deposit; drafted/reviewed by a licensed solicitor.
- State Authority consent (leasehold properties): 1-3 months processing time.
- Total timeline: 3 months to 1 year (developer sale typically faster than private resale).
Steps
- Sign Letter of Offer — Pay 2-3% earnest deposit.
- Engage lawyers for due diligence — Buyer's lawyer runs a land search checking encumbrances and legal ownership.
- Sign the SPA — Pay a further 7-8% deposit.
- Apply for financing — Submit payslips, bank statements, and SPA to the lender.
- Obtain State Authority consent (leasehold) — Takes 1-3 months.
- Register at the Land Office — Issue Document of Title issued in the buyer's name.
Costs
- Letter of Offer earnest deposit: 2-3% of purchase price
- SPA signing deposit: 7-8% of purchase price
Timelines
- Total buying process (SPA to registration): 3 months to 1 year
- State Authority consent (leasehold): 1-3 months
Required documents
- Letter of Offer
- Sale and Purchase Agreement (SPA)
- Payslips/bank statements (for financing)
- State Authority consent (leasehold)
Common mistakes
- Not budgeting for the 1-3 month State Authority consent delay on leasehold property purchases.