How much is the ancillary cost of buying a property (subsale)?
We have paid for the house say RM500k. What are the other costs that you need to pay? Buying a house includes the below costs:
- Stamp duty on purchase of property - MOT* (paid by purchaser)
- Stamp duty on SPA Document (shared by purchaser and vendor - not much)
- Legal fee on SPA (shared by purchaser and vendor - or negotiated)
- Legal fee on Loan agreement (paid by purchaser)
- Stamp duty on Loan agreement (paid by purchaser)
- MRTA or other insurance charges (paid by purchaser)
- Valuation fee (if required for loan paid by purchaser)
- Estate agency fee (if engaging an estate agent to look for house)
* MOT = Memorandum of Transfer
- Stamp duty on MOT is calculated based on 1% for first 100k, 2% for next 400k. (Some exemption for 1st time housebuyer)
- Legal fee is by advocates remuneration charges, usually can be negotiated to a discount if you know the lawyer well. Around 0.5% of the entire selling price.
- Legal fee on Loan agreement is usually 0.5% of the entire loan.
- Stamp duty on loan also around 0.5% of the entire loan.
- MRTA depends on the type of coverage and length of loan tenure. You may take shorter than who loan tenure.
- Valuation fee usually RM900 for property around RM500K. Refer table linked below.
- Estate agency fee maximum 3% of transacted price (usually seller pay, not buyer pay, however in certain states like Penang and Melaka, 50%-50%)
- Stamping fee for legal documents of SPA & Loan Agreement is around a few hundred RM.