Buying Subsale Property in Malaysia: Title Search, Offer, SPA, Transfer & Handover
Buying subsale property in Malaysia means a negotiated contract and no developer warranty, so the title search and inspection before you pay a deposit matter most. Every guide is laid out below in six stages: title search and arrears, deposit and negotiation, the SPA completion period, state consent and transfer, RPGT retention, and the handover and utilities afterwards.
Short answer
A subsale purchase in Malaysia has no developer warranty, so the risk is decided before you pay a deposit: the title search, caveats and restrictions in interest, the owner’s arrears and the condition of the unit. Market practice is a 10% deposit in total (2–3% as earnest money), completion in 3 months plus a 1-month extension, and the buyer retains 3% of the price (7% if the seller is a non-citizen) for LHDN within 60 days.
Key numbers at a glance
| Earnest deposit | 2–3%, topped up to 10% on signing the SPA |
|---|---|
| Completion | 3 months + 1 month extension (late interest usually 8% a year) |
| RPGT retention | 3% of the price; 7% if the seller is a non-citizen, within 60 days |
| Transfer | Form 14A; charge on Form 16A |
| State consent | Required for leasehold or restriction-in-interest titles |
| Agent commission | Capped at 3% of the price, normally paid by the seller |
| Check before you offer | Title search, caveats, maintenance and assessment arrears, condition |
| Stamp duty | 1%/2%/3%/4% on the higher of price or market value |
Six stages from viewing to keys
Most subsale risk is decided before you pay a deposit: restrictions on the title, the owner’s arrears and the condition of the unit. Finish Stage 1 before you make an offer.
Before you book
Before you make an offer, search the title, check for caveats and arrears, inspect the unit and verify the agent's registration.
Booking & the home loan
Booking, applying for the bank loan, reading the letter of offer — plus EPF, interest rates and insurance that decide your instalment.
Signing the SPA
The SPA, the loan agreement, stamp duty and legal fees — understood clause by clause before you sign.
From SPA to keys
After signing, the lawyers handle stamping, state consent, redeeming the seller's loan, RPGT retention and the transfer — keys come last.
After you get the keys
Inspection, utilities, assessment and quit rent, renovation, renting out, refinancing, selling and inheritance.
Repairs & property management
The Strata Management Act, JMB/MC, maintenance fees and sinking fund, by-laws, common-property defects and leaks.
Ask Louis directly
Send me the address and the asking price and I will come back with recent transactions, the arrears list to check and how to pitch your offer.
I'll pull recent transacted prices in the same project or area for you, plus a pre-offer checklist.
Frequently asked questions
How much deposit do I pay for a subsale property?
By market practice, 10% in total: a 2–3% earnest deposit with your offer, and the remaining 7–8% when the SPA is signed. It is convention, not law, so it can be negotiated. See making an offer on a subsale property.
How long does a subsale take from SPA to keys?
Most SPAs give the buyer 3 months to pay the balance, plus a 1-month extension with late-payment interest (commonly 8% a year, some up to 10%). Where the title needs state consent, the completion period usually starts only once consent is granted.
Why does the buyer retain 3% of the price for LHDN?
Under the Real Property Gains Tax rules, the buyer must retain 3% of the price (7% if the seller is neither a citizen nor a PR) and pay it to LHDN within 60 days of the disposal date. The buyer’s lawyer normally handles this. See the subsale transfer process.
What should I check before buying a subsale property?
At least three things: a title search (registered owner, charges, caveats and restrictions in interest), arrears (maintenance, assessment, quit rent, utilities) and the unit’s condition (leaks, unapproved renovations). The checklist is in subsale due diligence.
Who pays the agent's commission on a subsale?
Usually the seller who appointed the agent. The statutory scale caps sale commission at 3% of the price, and only a Registered Estate Agent (REA) firm may charge fees. How to verify an agent: REN, REA and commission.
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.
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.
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.
I'll pull recent transacted prices in the same project or area for you, plus a pre-offer checklist.
Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT