Subsale Transfer Process: State Consent, Form 14A, Redemption & RPGT Retention
The subsale transfer process in Malaysia runs from the SPA to the registration of the Memorandum of Transfer (MOT, Form 14A) at the land office, normally inside a 3-to-4-month completion period, with another 1–2 months or more where state consent is needed. This guide walks through each step in order, who handles it, where the money goes, and why your lawyer holds back 3% of the price for the tax authority.
Short answer
The subsale transfer process in Malaysia runs from the signed SPA to registration of the transfer (Form 14A) at the land office, normally inside a 3-month completion period, plus 1–2 months or more where state consent is needed. The buyer pays MOT stamp duty (RM12,000 on RM600,000) and the lawyer retains 3% of the price, or 7% if the seller is neither citizen nor PR, for LHDN within 60 days.
Key numbers at a glance
| Transfer document | Memorandum of Transfer, Form 14A; charge on Form 16A |
|---|---|
| Completion period | Usually 3 months + a 1-month extension with late interest |
| State consent | Leasehold and restricted titles; adds 1–2 months or more |
| MOT stamp duty | 1%–4% tiers; flat 8% for foreigners (from 1 Jan 2026) |
| Loan agreement stamp duty | 0.5% of the loan amount |
| RPGT retention | 3% (citizen or PR seller) or 7%; to LHDN within 60 days |
| Tax forms | Buyer CKHT 2A, seller CKHT 1A, via e-CKHT on MyTax |
| When ownership passes | On registration of the transfer (National Land Code) |
Key points in 30 seconds
- The key document is the Memorandum of Transfer (MOT, Form 14A); under the National Land Code, ownership passes only when it is registered at the land office.
- Leasehold and restricted titles need state consent first; law firms and portals put this at anywhere from 1–2 months to 1–6 months.
- Your lawyer retains 3% of the price (seller is a citizen or PR) or 7% (seller is neither) and pays it to LHDN within 60 days, and you file form CKHT 2A.
- If the seller has a loan, your bank pays the redemption sum first and the balance goes to the seller; in a RM600,000 example the seller nets RM332,000.
- MOT stamp duty on RM600,000 is RM12,000 for a Malaysian buyer, and 2026 announcements say property transfers will move to stamp duty self-assessment from 2027.
The subsale transfer process step by step
- 1. Sign the SPA and top up to 10%The SPA is stamped within 30 days at RM10 per copy. Clauses are explained in the subsale SPA guide.
- 2. Apply for state consent (if required)Usually filed by the seller’s lawyer; in Johor, with PTG Johor or the district land office.
- 3. Sign the loan documentsYou sign the loan agreement and the charge (Form 16A) with the bank’s lawyer.
- 4. Sign the transfer (Form 14A)Buyer and seller execute the MOT before their lawyers.
- 5. Stamp duty assessment and paymentThe MOT goes to LHDN for adjudication on the higher of price or market value; the buyer pays.
- 6. Redeem the seller's loanThe seller’s bank issues a redemption statement; your bank undertakes to pay it in exchange for the title and discharge.
- 7. Pay the differential sum; the bank disbursesWithin the completion period, or with late interest during the extension.
- 8. RPGT retention and filingYour lawyer remits 3% or 7% to LHDN within 60 days; both parties file their returns.
- 9. Present and register at the land officeThe transfer and charge are registered; only then is the property in your name.
- 10. Handover and apportionmentThe seller hands over the keys; assessment, quit rent and maintenance are split as agreed.
Does a subsale need state consent, and how long does it take?
It depends on the conditions on the title, not the type of house. Consent is typically needed for leasehold land whose title requires state approval to transfer, titles with a restriction in interest (sekatan kepentingan), Bumiputera-quota units and foreign buyers. A freehold title with no restriction usually needs none.
| Source | What it says |
|---|---|
| Donovan & Ho (law firm) | An additional 1–2 months or longer before the 3-month completion period starts, depending on the state |
| PropertyGuru | About 1–3 months for leasehold consent |
| PropCashflow | Adds 1–6 months and roughly RM500–RM2,000 in fees |
The sources disagree, so we show all three: the real figure depends on the state and the land office’s workload. In Johor it’s PTG Johor or the district land office. Foreign buyers in Johor also pay the state approval levy, 3% of the price or RM30,000, whichever is higher, since 1 July 2025; see foreigners buying in Johor. Title conditions are explained in land titles in Malaysia.
The two deadlines people miss are both statutory. Instruments must be stamped within 30 days of signing, or you pay RM50 or 10% of the duty, whichever is higher (RM1,200 on RM12,000), rising to RM100 or 20% after three months. The RPGT retention must reach LHDN within 60 days, or a 10% increase applies (RM1,800 on RM18,000).
Ask Louis directly
Send me the first page of your SPA and the title search and I will tell you whether this property needs state consent and what date your completion period really starts from.
Send me your purchase price and I will list your transfer costs for free: MOT stamp duty, loan agreement duty, the RPGT amount your lawyer must retain, and the items to ask your lawyer to quote.
How much stamp duty is paid on a subsale transfer, and when?
Stamp duty on the MOT is charged on the higher of the price or market value. For citizens and PRs: 1% on the first RM100,000, 2% on RM100,001–500,000, 3% on RM500,001–1 million and 4% above RM1 million. Foreign individuals (non-PR) and foreign companies buying residential property pay a flat 8% from 1 January 2026. The loan agreement carries 0.5% of the loan.
| Item | Working | Amount |
|---|---|---|
| MOT stamp duty (Malaysian buyer) | RM1,000 + RM8,000 + RM3,000 | RM12,000 |
| Loan agreement stamp duty | RM480,000 × 0.5% | RM2,400 |
| SPA stamp duty | RM10 per copy | RM10 per copy |
First-time Malaysian buyers of a home up to RM500,000 with an SPA signed between 1 January 2026 and 31 December 2027 are fully exempt on both the MOT and loan agreement; see first-time homebuyer incentives. Full calculations are in stamp duty & legal fees in Malaysia 2026.
- Instruments are generally stamped within 30 days of signing. Late stamping costs RM50 or 10% of the duty (whichever is higher) within 3 months, and RM100 or 20% after that.
- For documents signed abroad, the 30 days run from when the document is first received in Malaysia.
- Stamp duty self-assessment is being phased in: tenancies and some other instruments from 2026, with property transfers expected in Phase 2 in 2027. Budget 2027 hadn’t been tabled as at September 2026, so check LHDN’s latest guidance.
What if the seller still has a housing loan?
Most subsale homes are still charged to the seller’s bank, which holds the original title. Redemption typically works like this:
- The seller’s lawyer requests a redemption statement from the seller’s bank, showing the payoff amount and its validity.
- Your bank’s lawyer sends the seller’s bank an undertaking to pay that amount within a set time.
- The seller’s bank releases the original title and a signed discharge of charge (Form 16N), which the lawyers hold as stakeholders.
- Your bank disburses: the redemption sum to the seller’s bank, the balance to the seller through the seller’s lawyer.
| Payment | Comes from | Goes to | Amount |
|---|---|---|---|
| RPGT retention (3%) | Deposit, held by buyer’s lawyer | LHDN | RM18,000 |
| Rest of deposit | Deposit | Seller, at completion | RM42,000 |
| Redemption sum | Buyer’s loan | Seller’s bank | RM250,000 |
| Loan balance + differential sum | RM480,000 loan + RM60,000 differential − redemption | Seller | RM290,000 |
| Seller’s net (before agent and legal fees) | Seller | RM332,000 |
Check: RM18,000 + RM250,000 + RM332,000 = RM600,000. The seller’s agent fee, legal fees and any early-settlement penalty come out of the seller’s share; see selling property in Malaysia.
What is the 3% RPGT retention, and what must the buyer do?
Under the Real Property Gains Tax Act 1976 the buyer must hold back part of the price and pay it to LHDN within 60 days of the disposal date. In practice your lawyer retains it from the deposit and remits it.
| Seller | Buyer retains | On RM600,000 |
|---|---|---|
| Malaysian citizen or PR | 3% | RM18,000 |
| Not a citizen and not a PR | 7% | RM42,000 |
| Company seller | May differ; ask your lawyer | — |
- The buyer files CKHT 2A within 60 days of acquisition; the seller files CKHT 1A. Both are done through e-CKHT on MyTax.
- If the seller issues CKHT 3 through e-CKHT (certifying the disposal isn’t chargeable or is exempt), the buyer doesn’t need to retain.
- Tax advisers note that from 2026 the buyer may retain a lower amount if the seller notifies the self-assessed tax beforehand.
- Late remittance attracts a 10% increase on the unpaid amount.
The tax itself is the seller’s; the buyer only withholds. Rates as at September 2026 are in RPGT rates 2026. Budget 2027, expected in early October, may change them.
When does ownership actually pass to me?
Signing the MOT and paying the price doesn’t make you the owner yet. Under the National Land Code (Kanun Tanah Negara), ownership passes when the stamped transfer is registered at the land office. Your lawyer presents Form 14A, the charge (Form 16A) and the seller’s discharge together; once registered, the title shows your name and your bank as registered chargee.
In Johor, titles are handled by PTG Johor and the district land offices. Registration fees follow the state schedule, and Johor has raised transfer registration fees for properties above RM500,000, so ask your lawyer for a written quote. If no individual or strata title exists yet, Form 14A can’t be used and the buyer takes a deed of assignment instead; see caveats and perfection of transfer.
Common subsale transfer delays and how to handle them
| Cause of delay | Usual fix |
|---|---|
| State consent pending | Make the completion period run from the consent date; the lawyer follows up with the land office |
| Seller’s bank slow with discharge documents | Hold the seller to the SPA; negotiate seller late interest |
| Buyer’s loan conditions not met (valuation, insurance, documents) | Submit documents early; prepare cash if valuation falls short |
| Unpaid management or council charges | Require a no-arrears confirmation before completion |
| Seller overseas and can’t sign | Arrange a power of attorney or overseas signing early; see power of attorney for property |
| A caveat on the title | Find out who lodged it and why, and make its removal the seller’s job; see caveats explained |
Handover and apportionment: what to check on key day
- Receipts or a management letter showing the seller has cleared arrears of assessment, quit rent, maintenance, sinking fund and utilities.
- Current-period charges apportioned to the agreed date (for example, if the seller has paid the full year’s quit rent, you reimburse the days after handover).
- Condition matches what you saw at signing, and all listed fixtures are there.
- All keys, access cards, parking cards, remotes and appliance warranties.
- Photos of the water and electricity meter readings.
- If sold with a tenant: the original tenancy agreement, the tenant’s deposits, and a notice to the tenant about the new rent account.
Utility transfers and changing the name on assessment are covered in after getting the keys. More guides are in the subsale hub.
Related questions
What happens if the bank values the property below the price?
The bank lends on the lower of price and valuation. On the same RM600,000 house, a RM570,000 valuation cuts an 80% loan from RM480,000 to RM456,000, so you need RM24,000 more in cash. You can ask the bank to re-value with comparable transactions, or try another bank. See valuation and transacted prices.
What if the completion period expires before I pay?
The market norm is a 3-month completion period plus a 1-month extension, with daily interest on the unpaid balance at the rate in your SPA. Law firms quote 6%–10%, and 8% is the most common. On RM480,000 outstanding for 30 days at 8%, that is about RM3,156. If the extension lapses, the seller can terminate and forfeit the deposit; see the subsale SPA guide.
Is the transfer different for a foreign buyer?
In three ways. Every foreign buyer needs state consent, so build in the wait. MOT stamp duty on residential property is a flat 8% from 1 January 2026, which is RM48,000 on RM600,000 instead of the RM12,000 tiered figure. And since 1 July 2025 Johor charges a state approval levy of 3% of the price or RM30,000, whichever is higher; see foreigners buying in Johor.
The seller lives overseas. Will that delay the transfer?
It will, unless it is arranged early. The seller can sign before a notary public or a Malaysian consular officer abroad, or give a power of attorney to someone here. A PA must be stamped and registered at the High Court first, and that time comes out of your 3-month completion period. For documents signed abroad, the 30 stamping days run from arrival in Malaysia. See power of attorney for property.
Frequently asked questions
How long does a subsale transfer take in Malaysia?
Where no consent is needed, the price is usually paid within the 3-month completion period (plus a 1-month extension if required), followed by registration at the land office. With state consent, law firms estimate an extra 1–2 months or more, and some portals say 1–6 months, depending on the state.
Why does the buyer hold back 3% of the price?
The Real Property Gains Tax Act makes the buyer responsible for retaining 3% of the price (seller is a citizen or PR) or 7% (seller is neither) and paying it to LHDN within 60 days, together with form CKHT 2A. If the seller provides CKHT 3 showing no tax is payable, no retention is needed.
What is Form 14A?
Form 14A is the Memorandum of Transfer (MOT) under the National Land Code. Buyer and seller sign it, it is stamped, and the lawyer presents it at the land office. Ownership passes to the buyer only when the transfer is registered.
Can I buy a subsale property that still has a bank loan?
Yes, that’s the usual case. The seller’s bank issues a redemption statement, your bank’s lawyer gives an undertaking to pay it, the seller’s bank releases the title and discharge, and your bank’s disbursement pays off the seller’s loan before the balance goes to the seller.
Who pays stamp duty on a subsale transfer?
Normally the buyer. MOT duty is based on the higher of price or market value, at 1%–4% tiers for Malaysians and a flat 8% for foreigners buying residential property from 2026. The loan agreement carries 0.5% of the loan. Eligible first-time buyers can be exempt.
When do I get the keys to a subsale property?
Usually once you have paid the full balance, with the seller handing over within the number of working days set in the SPA. Early handover can be negotiated once the redemption sum is released. On key day, check arrears receipts, condition and the fixtures list.
Sources & verification
- LHDN — Responsibility of Disposer and Acquirer (CKHT 1A, 2A, 3)
- L&Co — Malaysia RPGT latest update 2026 (retention, CKHT 3, 10% penalty)
- PropCashflow — RPGT Malaysia: CKHT forms and 60-day deadline
- PropCashflow — Memorandum of Transfer (MOT) Malaysia
- PropCashflow — Stamp duty on documents executed outside Malaysia
- RDS Partners — Key stamp duty changes from 1 January 2026 (self-assessment phases, 8%)
- KC Group — Stamp Duty Malaysia 2026
- Donovan & Ho — Cash Flow & Timing of Sub-Sale Property Purchase
- PropertyGuru — Understanding the Property Closing Process in Malaysia
- Hartanah Johor — Pindah milik tanah, Borang 14A
Verified: 2026-09-20. This guide is general information, not legal, tax or financial advice. Rules and rates change — confirm in writing with your lawyer, bank or the relevant authority before you sign.
More in this stage
Louis Koh
11 years in Malaysian property · Johor Bahru & Kuala Lumpur · English & 中文
I help local buyers and cross-border buyers from Singapore with new and subsale property. Every figure in these guides is sourced; when a rule changes, I update the page and date it.
Stuck on this step? Ask me directly
Send me your situation — new or subsale, budget, state, and where you are in the process — and I will tell you what to do next and what to watch for.
Send me your purchase price and I will list your transfer costs for free: MOT stamp duty, loan agreement duty, the RPGT amount your lawyer must retain, and the items to ask your lawyer to quote.
Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT